Guidelines for Partners
FY26 CSP Incentive Eligibility is evolving – starting in October 2025, Microsoft is introducing updated requirements for partners participating in the Cloud Solution Provider (CSP) program. The good news: accessing FY26 Microsoft Commerce Incentive (MCI) rewards has become easier for Indirect Resellers. The updated criteria lower the barrier to entry, enabling more partners to qualify for incentives and benefit from their performance in specific solution areas. Whether you’re a direct bill or indirect reseller, these changes affect you.
Why the Change?
Microsoft is aligning FY26 CSP Incentive Eligibility with its broader strategy of rewarding partners who demonstrate measurable capability and impact in key solution areas. FY26 shifts the focus from general partner status to performance-driven metrics – like partner capability scoring – while making the program more inclusive for indirect resellers.
1. Flexible Partner Designation Requirements
The FY26 changes actually provide more flexibility compared to previous requirements:
For Direct Bill Partners:
Must hold a Solutions Partner designation specific to the solution area:
- Modern Work & Security Incentives: Requires Solutions Partner for Modern Work or Security
- Business Applications Incentives: Requires Solutions Partner for Business Applications
- Azure Incentives: Requires one of the following:
- Solutions Partner for Data & AI
- Solutions Partner for Digital & App Innovation
- Solutions Partner for Infrastructure
For Indirect Resellers (Lowered Requirements):
- Either a Solutions Partner designation specific to the solution area, OR
- Minimum of 25 capability score points in the relevant solution area
- This provides more flexibility than the previous requirement of needing a Solutions Partner designation
2. Revenue Thresholds for FY26 CSP Incentive Eligibility
Eligibility now includes financial performance thresholds:
Direct Bill Partners:
- $1M trailing 12-month revenue at Partner Global Account (PGA) level
- Solution-specific Solutions Partner designation required
Indirect Resellers:
- $25,000 trailing 12-month revenue at partner location
- Either Solutions Partner designation OR minimum of 25 capability score points in relevant solution area
Note: There’s no revenue requirement for Azure incentives for Direct Bill Partners.
Requirement | Indirect Reseller | Direct Bill Partner |
25+ capability points | ✅ Incentive eligible (alternative to SPD) | ✅ Incentive eligible (with designation) |
70+ capability points (SPD) | Optional (alternative approach) | ✅ Required for incentives |
SPD in all 3 scoring categories | Optional | ✅ Required |
Revenue threshold | $25K TTM | $1M TTM |
What is the Partner Capability Score?
Microsoft has introduced a scoring system based on:
- Skilling (certifications – intermediate and advanced)
- Performance (customer adds)
- Customer Success (solution deployment and usage)
For indirect resellers, partners can now earn eligibility with at least 25 points as an alternative to holding a full Solutions Partner designation (which requires 70+ points in all categories).
Monthly Eligibility Checks CSP partner capability points are reviewed monthly. Microsoft checks the current month and the previous five months to determine if the 25-point requirement is met. Falling below this window means losing incentive eligibility until the score rebounds.
How to Maintain FY26 CSP Incentive Eligibility
- For Indirect Resellers: Check if you have either a Solutions Partner designation in your solution area OR at least 25 capability points – you now have more pathways to eligibility
- For Direct Bill Partners: Ensure you have the required Solutions Partner designation in your solution area
- Evaluate your capability score – Are you consistently above 25 points (indirect resellers) or 70+ points (direct bill)?
- Align your team’s skilling and certifications with Microsoft’s updated criteria
- Monitor your revenue contributions per location or PGA level
Examples: Partner Capability Scoring in Practice for Indirect Resellers
Understanding how the partner capability score works in real scenarios can help you better plan your path to eligibility. Here are a few practical examples for indirect resellers based on Microsoft’s FY26 guidance:
🔹 Example 1: Steady Performance Across Months A partner consistently holds 25+ capability points across six months. They remain eligible for CSP incentives throughout the period.
🔹 Example 2: Temporary Dip in Capability Score If a partner drops below 25 points for a few months but regains them within the six-month eligibility window (current month + previous five), they stay eligible.
🔹 Example 3: Losing and Regaining Eligibility If a partner’s capability points fall below 25 for the full six-month window, they lose incentive eligibility until the 25-point mark is reestablished.
🔹 Example 4: Loss of Solutions Partner Designation If an indirect reseller loses their Solutions Partner designation but still holds 25+ capability points within the six-month window, they remain eligible.
🔹 Example 5: Azure Incentive Eligibility from One Solution Area For Azure incentives, a partner only needs 25 points in any one of the three Azure solution designations (Data & AI, App Innovation, or Infrastructure) to stay eligible.
These examples demonstrate the increased flexibility in Microsoft’s approach for indirect resellers – encouraging consistent performance while allowing for multiple pathways to eligibility and temporary dips or changes in designation.
Keep monitoring your progress monthly and take corrective action early to maintain eligibility.