Microsoft CSP Pricing Changes — Effective 1 October 2026

Microsoft is introducing several changes to its Cloud Solution Provider (CSP) program pricing, effective 1 October 2026. This article summarises what's changing, which products are affected, and what it means for you as a Manage Protect customer.

Summary 

1. Reduced Partner Margin on Select Products

From 1 October Microsoft is reducing partner discounts by 5% on a number of legacy and standalone products. Microsoft's recommended retail price (RRP) for these products is not changing. What's changing is the margin Microsoft offers partners - decreasing by approximately 5% on the products listed below, applying to new and renewing subscriptions from that date.

Affected products:

• Office 365 E1
• Office 365 E3
• OneDrive Extra Storage
• SharePoint
• Exchange Online
• Microsoft 365 Apps for Business
• Microsoft 365 Apps for Enterprise

What this means for you: This is a change to your cost that will be reflected on your next invoice.

Recommendation: If you have renewals coming up, it's worth reviewing your broader Microsoft 365 setup with us. There may be opportunities to modernise or consolidate your licensing that help manage overall cost.

2. New Growth Margin Scheme

Microsoft is introducing a new "Growth Margin" that offers an additional discount of 15 to 25% over standard partner pricing on a set of strategic products, for transactions that meet certain eligibility criteria.

Eligible products:

• Microsoft 365 Copilot
• Microsoft 365 E5
• Microsoft 365 E7
• Microsoft Defender Suite
• Microsoft Purview Suite
• Windows 365 Enterprise

Key eligibility considerations (not exhaustive):

• Discounts are earned across three scenarios: New-to-Offer, Seat Expansion, and Strategic SKU Mix
• Eligibility is assessed at the customer tenant level
• Minimum seat counts, expansion multipliers and ratio thresholds apply
• Mid-term expansions that qualify require a new subscription
• Eligibility is tied to the transaction and applies to the initial term only, unless requalified at renewal
• Nonprofit and Education SKUs are excluded

What this means for you: If your organisation uses, or is considering, any of the products listed above, you may be eligible for meaningful additional savings. Because eligibility depends on your specific tenant setup and purchasing scenario, we'll need to assess this on a case-by-case basis.

Recommendation: Talk to your account manager before quoting or purchasing any of the eligible products, so we can validate eligibility and structure the transaction correctly. Further detail on the growth margin scheme will be published by Microsoft in the coming weeks, and we'll keep this article updated.

3. Customer Price Increase: 5% Uplift on Annual-Term Subscriptions Billed Monthly

From 1 October 2026, Microsoft is applying a 5% cost-of-capital uplift to CSP software subscriptions that have an annual-term commitment but are billed monthly. Unlike the margin change in section 1, this is a direct increase to the customer's subscription price, not a change to partner margin.

Affected products:

• SQL Server
• Windows Server
• Client Access Licences
• System Center

Timing:

• For existing subscriptions in this category, the uplift applies at your next renewal on or after 1 October 2026
• Annual billing (paid upfront) and month-to-month subscriptions are not affected by this change

Recommendation: If you currently pay for an annual-term subscription monthly, it's worth reviewing your billing options with us ahead of renewal. Switching to annual billing, where suitable, avoids this uplift.

Further reading: