What's changed so far? 

The new Microsoft Incentives Guide for FY27 was released gradually throughout yesterday (July 1st). We expect a few more minor updates, but the Noteworthy team have run a close analysis of how last year compares to this new FY and there are some truly noteworthy changes (the pun was intended). 

We've split the changes and impact out by workload and also by job role (Sales, Delivery, Operations, Finance etc) so that you can easily see how the changes impact you. 

The shift is not a simple update - it’s a fundamental redesign of the incentives model:

• • More scenario-driven (AI, Security outcomes, Azure growth)
  • More controlled and curated
  • More tied to strategic workloads + customer lifecycle stages

• • Fewer generic earning opportunities
  • Higher bar for eligibility & proof
  • More focus on impact, not just transactions

Detailed change analysis

Below are the material changes that affect claiming, revenue, and operations.

1. Overall Program Structure

• Modern Work
• Azure
• Security
• Business Applications
  With standardised:
• Eligibility
• Rates

• • AI Business Solutions
  • Cloud & AI Platforms (Azure-focused)
  • Security

• • Narrative
  • Priorities
  • Engagement structure 

• • Re-map your offerings to solution plays (AI / Security / Azure)
  • Stop treating incentives as “one program”

2. Introduction of “Frontier” Investment Model

• • SKUs
  • Workloads
  • Revenue metrics

• • Frontier Accelerate (Azure & Security)
  • AI-driven investment themes

• • High-growth, high-strategic workloads
  • Deep partner involvement in customer transformation

• • Align sales plays to Frontier scenarios
  • Expect funding to be selective, not broad

3. AI-Centric Incentives (New Engagement Category)

• • Azure
  • Data workloads

• • A first-class incentive category
  • Likely tied to:
    • Copilot
    • AI apps
    • Business process transformation

• • Build AI-led propositions
  • Train sales teams on AI value conversations
  • Expect higher rewards but stricter qualifications

4. Retirement of Broad “Solution Area” Navigation

• • Modern Work
  • Security
  • Azure

• • Update internal documentation
  • Train teams separately per solution area

5. Shift from Volume-Based to Outcome-Based Incentives

• • Revenue / consumption-driven incentives
  • Predictable earning mechanics

• • Focus on:
    • Customer outcomes
    • Adoption depth
    • Strategic scenarios

• • Usage maturity
  • Business impact
  • Not just transactions

• • Strengthen post-sales delivery + adoption tracking
  • Sales alone won’t unlock incentives anymore

6. Engagement Portfolio Changes

• • Large list of granular engagements
  • SKU/workload-specific incentives

• • Fewer, broader scenario-based engagements
  • Grouped around:
    • AI transformation
    • Security posture
    • Azure growth

• • Retired or absorbed into broader plays

• • Re-map:
    • Old engagements → New solution plays
  • Identify revenue gaps from retired incentives

7. Eligibility Tightening (Implied Structural Change)

• • Broad eligibility across partners
  • Based on:
    • Competencies
    • Basic criteria

• • Likely stricter:
    • Capability requirements
    • Scenario alignment
    • Customer qualification

• • Audit:
    • Your designations
    • Solution capabilities

8. POE (Proof of Execution) Expectations

• • Standard POE requirements
  • Often transactional validation

• • Implied move toward:
    • Outcome-based validation
    • Deeper evidence of delivery

• • What was delivered
  • Customer impact

• • Upgrade:
    • Delivery documentation
    • Customer evidence
  • Prepare for stricter audits

9. Partner Center & Claiming Process

• • Centralised Partner Center workflows

• • Likely more:
    • Program-specific processes
    • Investment-led approvals

• • Train ops teams on new claiming paths
  • Expect manual intervention / approvals

10. CPOR / PAL Dependency (Strategic Importance Increased)

• • Important but operational

• • Likely critical for:
    • Scenario attribution
    • Investment qualification

• • Enforce:
    • CPOR hygiene
    • PAL tracking
  • Add governance controls

Revenue impact

• • Likely dip in predictable earnings
  • Loss of “easy” incentives

• • Higher earnings potential per deal
  • But only for:
    • AI
    • Security
    • Azure growth scenarios

• • Revenue concentration
  • Fewer qualifying deals

Operational impact 

• • Multiple programs vs one guide

• • Sales + Delivery + Finance must align

• • Eligibility checks
  • Attribution validation
  • POE readiness

Audit & Compliance impact

• • Outcome-based incentives
  • Less standardisation

• • Deeper validation
  • More rejected claims if evidence is weak

Recommended actions by function

Sales

• • AI transformation
  • Security outcomes

• • Incentive scenarios early

Delivery

• • Measurable outcomes
  • (strong) documentation

• • Adoption & usage metrics

Finance

• • Incentive revenue (less predictable)

• • Program (AI / Security / Azure)

Operations

• • Claiming processes

• • Attribution governance (CPOR/PAL)

• • Audit-ready POE packs

The bottom line 

This is not a version update - it’s a strategic reset:

Partners who: