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What is new in the Microsoft Commerce Incentive Guide for FY26?

Written by Annie Clemo | Jul 1, 2025 3:15:06 PM
 

Microsoft’s FY26 Commercial Partner Incentives Guide, effective July 1, 2025, is hot off the press. It introduces significant changes to funded engagements, the structured, high-impact activities where partners can earn fixed fees for driving customer outcomes across solution areas.

If you’ve been working with funded engagements in FY25 (December 2024 guide), we have broken down what’s evolved in FY26 and why it matters.

Full Refresh of Funded Engagements Across All Solution Areas

The most notable update for FY26 is a complete refresh of activity-based engagements, which includes nearly all funded engagements across:

  • Modern Work

  • Security

  • Azure Accelerate

  • Business Applications

This means:

  • Engagement scopes, eligibility criteria, and payout structures have been reviewed and updated.

  • You’ll need to check engagement-specific pages in the FY26 guide to understand how these changes impact your delivery approach.

2. Performance-Based Claim Controls Introduced

New for FY26: Performance thresholds have been added to select funded engagements.

For Example:

  • Cloud Endpoints Envisioning & PoC

  • Copilot+Power Deployment Accelerator
    These now require partners to meet measurable outcomes to maintain eligibility for future claims.

Takeaway: It’s not just about delivering the engagement, outcomes matter more than ever.

3. Retired Funded Engagements from FY25

The following engagements that existed in FY25 have been removed or not continued in FY26:

  • Copilot Role-Based Vision & Value

  • Microsoft Intune Suite PoV

  • Windows in the Cloud Assessment – Small/Large

  • Secure Productivity Proof of Value

  • Teams Phone Proof of Value

  • Low Code Governance Strategy

  • ERP/CRM Tailored Demo

  • CRM/ERP Vision & Value

  • D365 Solution Optimization

  • Business Central Deployment Accelerator

4. New Funded Engagements Introduced in FY26

FY26 introduces several brand-new funded engagements, many of which focus on AI, security modernization, and deployment accelerators:

Security

  • Data Security Immersion Briefings - $2,000 fixed fee

  • Threat Protection Immersion Briefings - $2,000 fixed fee

  • Data Security Envisioning Workshop - $8,000 fixed fee

  • Modern SecOps Envisioning Workshop - $8,000 fixed fee

  • Threat Protection Envisioning Workshop - $8,000 fixed fee

Modern Work

  • CSP Deployment Accelerator for Mini Suites (S, M, L, XL) - Between $1,750 and $10,000, dependent on deal size.

  • Secure Productivity Envisioning & PoC (New engagement with size-based payout, between $7,000 and $30,000)

  • Copilot+Power Deployment Accelerator (Multiple tiers)

Azure

  • Cloud Endpoints Envisioning & PoC - 

  • ISV Success Advanced: Build & Publish - $5,000-$100,000 depending on project size.

Business Applications

  • Business Central Immersion Briefings - $2,000 fixed fee

  • CRM/ERP Envisioning Workshop - Variable rates

These new offers typically include more granular payout tiers, simplified Proof of Execution (POE), and updated performance requirements.

5. Defined Activity Requirements and Customer Eligibility

Across funded engagements, Microsoft has tightened and clarified:

  • Customer prerequisites (e.g., minimum licensing, opportunity size)

  • Minimum delivery hours

  • POE steps, now often limited to surveys and invoices to streamline submission

  • Tightened rules on subcontracting, Microsoft will not pay incentives to for activities completed by third parties. 

These changes aim to ensure funded engagements deliver measurable impact and drive deeper alignment with Microsoft’s solution priorities.

Quick Action Checklist for Partners

  • Review all funded engagements you’ve historically delivered; many have changed.
    Understanding new performance thresholds is crucial, as non-compliance can block future claims.
  • Download the FY26 guide and revisit Proof of Execution requirements.
  • Plan engagement delivery with new customer eligibility criteria in mind.
  • Educate your delivery teams, accuracy in execution is now directly tied to incentives.

The FY26 Incentives Guide is more than just a policy update—it’s a roadmap for partner success. By understanding these changes, you can better align your strategies, optimize your engagements, and unlock greater value from your Microsoft partnership.

If you have questions around how this update will affect you, please email me at annie@noteworthy.support. 
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