FY25 Strategy and Program Changes

MCAPS Priorities

Copilots on every AI design wins Securing the M365 core Migrations,

device across with every cyber foundation execution migrations,
every role customer of every customer migrations
Shape shifting of how we invest in partner growth
Historical Future

Modern incentives CSP $$ $$$

Customer
transformational ECIF $$$ $$$
investments
Azure Migrate & Modernize,
Agile investments Azure Innovate, $ $$$
Cybersecurity, etc
Partner
transformational Strategic $$
investments

Legacy incentives EA, TPOR $$$$

Enterprise Incentives – Changes coming in FY25 H2
FY24 H2 through FY25H1 FY25 H2 (starting Jan 1, 2025)
Change Summary
• Standardizing Modern Workplace Modern Modern Modern Modern
Premium, Standard, and Core rates Workplace – Workplace – Core Workplace – Workplace – Core
Premium Standard Premium Standard
across Level A-D customer sizes
• Removing incentives on year 2 and A 12.0% 6.0% 1.25% 0.75% 0.50% 0.45%
year 3 EA subscription (EAS)
New/Renew/ B 4.0% 2.5% 0.75% 0.75% 0.50% 0.45%
• Updating CASA incentive rates and True-Up/
products to align to strategic Add-on C 0.75% 0.50% 0.45% 0.75% 0.50% 0.45%
priorities
D 0.75% 0.50% 0.45% 0.75% 0.50% 0.45%
Purpose of the changes
• Focusing partner investments to key A 1.25% 0%
strategic priorities (Copilot, AI, EA
Security) and customer outcomes Subscription B 1.0% 0%
Recurring
• Continuing evolution of Microsoft’s (years 2 C 0.65% 0%
Enterprise strategy and 3)
• Aligning to partner business model D 0.45% 0%
transformation to drive impact in
SMC/SMB market Azure Indirect 1.5% 1.5%
Strategic 8.0% 5.0%
Change effective date CASA
Beginning of FY25 H2 (January 1, 2025) Standard 3.5% 0%
INCENTIVE F25 Q1
Americas FY25Q1 - Azure Infrastructure, App Dev and Data & AI
Listen & Consult Inspire & Design Empower & Achieve Realize Value Manage & Optimize

Pre-Sale At Sale Post-Sale

CO-OPs Funds Enterprise Program (LSP) - TPOR

Direct Indirect
FY24 Acquisition and Nurture (GL4741) Enterprise/SMC-C
COOPs accumulated from FY24H2 (Jan-Jun) will be able Consumed Revenue Agreement* Agreement
Acquisition Phase
to be executed for FY25H1 (Jul-Dec) – Claims up to Aug 15th Up to $200k USD per agreement 1% 1.5% 9k USD per workload
Reaching avg of 3k USD in 3 months
* Public Sector only
Nurture (up to 9 months) Single PAL/CSP Multiple PAL
CSP Azure Customer Adds Cust add Max
SPLA-R Named Non-Named Revenue above 3k USD 30% 10%
Indirect Reseller +15% $250k
HyperScale / Core 0.5% 2%
Direct Bill Partner +15% $250k Azure Migrate & Modernize (AMM)
Hosters / Strategic Market A* Market B*
Payments up to 12 months after first Azure 1% 5% & Azure Innovate Partner-Led
transaction SQL Accelerator 2 4% Infrastructure and Database Migration Up to $100k Up to $80k
100% Rebate COOP Infrastructure and Database Migration with
Hosting Incentive Rate
Portion Up to $57.5k Up to $46k
Microsoft Defender for Cloud
Azure Migrate & Modernize (AMM) SPLA revenue 4% 50% Migrating to Azure VMware Solution Up to $50k Up to $40k
Market A* Market B*
& Azure Innovate Partner-Led SQL Accelerator 4% 50% Virtual Desktop Infrastructure Up to $50k Up to $40k
Solution Assessment for Rapid Migration $5k $4k SAP Migration Up to $50k Up to $40k
CSP - MCI Core RI** Workload
Acc*** AI Acc***
SAP Migration Assessment $5k $4k Migration to SAP RISE in Azure Up to $50k Up to $40k
CSP – Indirect Reseller 4% 10% +2% +7% Azure Innovate Analytics Deployment Up to $50k Up to $40k
Azure Innovate Analytics Proof of Value $10k $8k Direct Bill Partner 4% 10% +2% +7% Azure Innovate Build & Modernize AI Apps
Deployment
Up to $50k Up to $40k
Azure Innovate Build & Modernize AI Apps * PAL association not required for CSP Incentives
Proof of Value
$10k $8k
** Incentives paid only for the consumed revenue for Reserved Instances Accelerate Developer Productivity Deployment Up to $50k Up to $40k
*** Check out Eligible workloads in the guide
Azure Innovate Accelerate Developer
Productivity Proof of Value
$10k $8k Azure Innovate Azure AI Platform Deployment Up to $50k Up to $40k
FY25 H1 AMERICAS SMC CSP ACR
SMC-C & SMC- SMB Market A: United States, Canada
Accelerator Campaign (LC5271) Size Deal (ACR per year)
Azure Innovate Azure AI Platform Proof of Value $10k $8k
Incentives are calculated for the ACR>baseline Max Market B: Latam Countries XS $10K – $25K
* Must have >25k/ year ACR to initiate the engagement incremental ACR over the baseline ➢ If you don`t know your customer TPID, S >$25K – $125K
for each Partner 20% $400k engage with M >$125K – $250K
Market A: United States, Canada
AzurePartnerOffering@microsoft.com L >$250K – $500K
Market B: Latam Countries ➢ Check Video to lear how to nominate
XL >$500K – $750K
your customer
*This asset is nonbinding and intended as a high-level overview of the Campaigns/Programs. Full details and Campaigns requirements are set forth in the applicable Terms XXL >$750K – $1M
& Conditions and Partner Agreement
Americas FY25Q1 – Azure Incentives Simulation

Scenario Deal (300k*/Year) Scenario Deal 47k/Year

(Net:40k*/Year)
210k USD/year to all Infra
Customer needs an Customer is moving all 30k USD/year to all Analytics
workloads
EA Infrastructure and SAP
Migration 90k USD/year to run SAP
CSP their Analytics workloads
to Microsoft
workloads
6k USD/year with Fabric ACR
resources
10k USD/year other ACR

*Net Revenue *Net Revenue

EA Partner Requirements CSP Partner Requirements
$52.5k (removing margin and discounts)
✓ *Be a LSP partner
Azure Expert MSP
✓ Hold any Azure Designation or
(removing margin and discounts)
$7k $19.7k
Incentives Simulation
✓
17.5% 49%
Incentive
✓ Specialization: Infrastructure &
Database Migration to
Cloud Platform legacy benefit
Specialization: Analytics on
Incentives Simulation 15% Margin
Incentive
Through out MCEM
✓
Microsoft Azure
✓ Specialization: Modernization Microsoft Azure Through out MCEM
of Web Apps to Microsoft ✓ Specialization: Data Warehouse
Azure
✓ Specialization in SAP on Migration to Microsoft Azure
Listen and Microsoft Azure Listen and
COOP can be used anytime for Pre-Sales activities COOP can be used anytime for Pre-Sales activities
Consult Consult
* Applied to the LSP only

AMM Partner-led: Solution Assessment for $4k

Rapid Migration: >25K/year Inspire and $8k Azure Innovate Partner-led: Analytics Proof of
Design Inspire and Value: >25K/year

Listen Design
AMM Partner-led: SAP Migration $4k and consult
Assessment: >25K/year $6k Azure CSP customer adds: 15% all ACR as a
new Customer
Empower Consume through Empower
* TPOR - Enterprise - Indirect Agreement Manage Inspire
Consummed ACR: 1.5% over monthly ACR $4.5k
and and and and $1.6k Azure CSP motion incentives: 4% all ACR

Design in
Achieve optimize Customer design Achieve
AMM Partner-led: Infrastructure and Database engagement $120 Azure workload accelerator CSP:
Migration: $28k 2% to Fabric ACR
(Large) > $125K– $250K/year Realize Realize
Value Realize Empower Value Azure Innovate Partner-led: Analytics
value and achieve $4k Deployment:
AMM Partner-led: SAP Migration:
(Small) $25K – $125K/year
$12k (Extra Small) $10K – $25K/year

Manage Manage
Mi
- and cro
soft and Pa r tne
rs and -
Optimize Optimize
 Americas FY25Q1 - Modern Work & Security
Listen & Consult Inspire & Design Empower & Achieve Realize Value Manage & Optimize

Pre-Sale At Sale Post-Sale

Enterprise Incentives A B C D Modern Work & Security Usage Incentive (previously OSU-M365) **
CO-OPs Funds
MW Cloud – Premium 12% 4% 0.75% 0.75% Rate/CU Max Cap
COOPs accumulated from FY24H2 (Jan-Jun) will be able to MW Cloud – Standard 6% 2.5% 0.5% 0.5% Teams Phone System $4 $75k
be executed for FY25H1 (Jul-Dec) – Claims up to Aug 15th Core (all other)* 1.25% 0.75% 0.45% 0.45% Front Line Worker Teams $4 $75k
M365 Breadth Customer Adds Cust add Azure Active Directory Premium 2 $3 $30k
Account Services (EAS) 1.25% 1% 0.65% 0.45%
+15% Microsoft Defender Endpoint $3 $30k
Indirect Reseller CASA/EES - Strategic 8% 8% 8% 8% Microsoft Information Protection $3 $30k
Direct Bill Partner +15% CASA/EES - Standard 3.5% 3.5% 3.5% 3.5% Intune $1 $10k
Payments up to 12 months after tenant creation
MCI CSP – New Commerce Experience *Core **Tier 1 ***Tier 2 Insider Risk Manager (IRM) $1 $10k
Modern Work and Security Partner
Market A Market B Market C +5% Microsoft Defender for Identity (MDI) $1 $10k
Pilots - MCI (Americas Market)* Indirect Reseller 3.75% +7%
+6%
Copilot Studio Value Discovery $7.5k $5k $3.5k Microsoft Defender for Office (MDO) $1 $10k
+5%
Copilot Value Discovery (Role-based) $7.5k $5k $3.5k Direct Bill Partner 3.75% +7%
+6% Microsoft Cloud App Security (MCAS) $1 $10k
Copilot Evaluation Accelerator (Role- *Core Max Cap: M365 E3/E5 $55.000, M365 Other $20.000
based)
$25k $20k $15k ** Needs CPOR association
**Tier 1 incentive: 5% for US and Canada*, 6% for LATAM**
$15k $11.5k $7.5k Tier 1 Max Cap: M365 E3 $55.000*, M365 E3 $65.000**
Copilot Evaluation Accelerator – Small
***Tier 2: Max Cap: M365 E5 / Copilot / M365 Copilot $115.000 Claiming Partner of Record (CPOR)
Copilot Evaluation Accelerator – Medium $25k $20k $15k
FY25 H1 Americas CSP Business Resources
Microsoft Intune Suite Pilot $20k $15k $10k Incentive Rate Max Cap CPOR Guide
Premium Campaign (LC5272)
Teams Phone Pilot $20k $15k $10k CPOR associations overview - Partner Center | Microsoft Docs
On incremental billed revenue for M365 NO MAX
Windows in the Cloud Assessment – Small $10k $7.5k $5k 10%
Business Premium above the baseline CAP
Windows in the Cloud Assessment – Large $20k $15k $10k Adoption Engagement (Americas) Market A Market B Market C
Copilot for Microsoft 365 10 for 10 Incentive Rate Max Cap
Threat Protection $6.4k $4k $1.5k Campaign (GL5279) Copilot Adoption Accelerator – Large $50k $37.5k $25k
Microsoft Sentinel Migrate and Modernize Up to Up to Up to Paid over billed revenue above 10 users 750k Copilot Adoption Accelerator – XLarge $75k $55k $37.5k
(>125k/year) $50k $40k $30k per customer during campaign period
10%
(per PGA)
CSP Adoption Accelerator for
Market A: United States, Canada $8k $6.5k $5.5k
ME3/ME5
Market B: Brazil, Chile, Colombia, Mexico, Puerto Rico, Uruguay
Market C: will include all other countries/regions eligible for MCI
*This asset is nonbinding and intended as a high-level overview of the Campaigns/Programs. Full details and Campaigns requirements are set forth in the
applicable Terms & Conditions and Partner Agreement
Americas FY25Q1 – ModernWork & Security Incentives Simulation

Scenario Deal (290k*/Year) B size Scenario Deal 50k/Year

2000 M365 F3 (150k/year) (Net:40k*/Year)
SMC Customer is SMB Customer is moving
2000 EMS E3 (50k/year) 150 M365 BP (31k/year)
EA purchasing a new
agreement for their 1000 Exchange Online (20k/year) CSP their production to a
Microsoft environment 10 M365 E5 (6k/year)
production. 100 M365 E5 (50k/year) 10 M365 Copilot (3k/year)
100 M365 Copilot (20k/year)
*Net Revenue *Net Revenue
EA Partner Requirements CSP Partner Requirements
$61.3k (removing margin and discounts)
✓ *Be a LSP partner
Solutions Partner for Security
✓ Hold any Solution Partner
(removing margin and discounts)
$10k $8k
Incentives Simulation
✓
21% 20%
Incentive ✓
Designation
Solutions Partner for Modern
Designation
Legacy Competencies
Incentives Simulation 20% Margin
Incentive
Through out MCEM
✓
Work Designation
✓ Legacy Cloud Productivity, Through out MCEM
EMM or Security
✓ Cloud Virtualization Jumpstart
✓ Copilot Jumpstart
Listen and Listen and
COOP can be used anytime for Pre-Sales activities COOP can be used anytime for Pre-Sales activities
Consult Consult
* Applied to the LSP only

Security – Threat Protection $4k

Microsoft Intune Suite Pilot $15k Inspire and -
Design Inspire and
Modern Work – Copilot Evaluation Accelerator -
$20k Listen Design
Medium
and consult $6k M365 CSP customer adds: 15% over all billed
revenue
* TPOR - Premium SKUs 4%: M365 E5 & Copilot $2.8k Empower Consume through Manage Inspire
Empower $1.5k Core : 3.75% over all billed revenue
and and and

Design in
* TPOR - Standard SKUs 2.5%: M365 F3 & EMS E3 $5k and Achieve $360 Strategic Product Tier 1: 6% over BP revenue
optimize Customer design Achieve Strategic Product Tier 2: 7% over ME65 E5 &
* TPOR - Other Core, 0.75%: Exchange Online $150 engagement $210 Copilot revenue

Realize Realize
- Value Realize Empower Value
-
value and achieve

Modern Work & Security Usage Incentive:

CPOR – Front Line Worker Teams: $4USD per user $14.4K Manage Manage
Mi
1800 user (2100 – 300)
CPOR - Intune: 1800 user (2100 – 300)
and cro
soft and Pa r tne
rs and -
CPOR - AADP2: 1800 users user (2100 – 300) Optimize Optimize
 Americas FY25Q1 - Modern Work
Listen & Consult Inspire & Design Empower & Achieve Realize Value Manage & Optimize

Pre-Sale At Sale Post-Sale

Enterprise Incentives A B C D Modern Work & Security Usage Incentive (previously OSU-M365) **
CO-OPs Funds NEW!!!
MW Cloud – Premium 12% 4% 0.75% 0.75% Rate/CU Max Cap
COOPs accumulated from FY24H2 (Jan-Jun) will be able to be MW Cloud – Standard 6% 2.5% 0.5% 0.5% Teams Phone System $4 $75k
executed for FY25H1 (Jul-Dec) – Claims up to Aug 15th Core (all other)* 1.25% 0.75% 0.45% 0.45% Front Line Worker Teams $4 $75k
M365 Breadth Customer Adds Cust add ** Needs CPOR association
Account Services (EAS) 1.25% 1% 0.65% 0.45%
Indirect Reseller +15%
CASA/EES - Strategic 8% 8% 8% 8%
Direct Bill Partner +15% CASA/EES - Standard 3.5% 3.5% 3.5% 3.5% Claiming Partner of Record (CPOR)
Payments up to 12 months after tenant creation Resources
MCI CSP – New Commerce Experience *Core **Tier 1 ***Tier 2 CPOR Guide
Modern Work and Security Partner +5% CPOR associations overview - Partner Center | Microsoft Docs
Market A Market B Market C Indirect Reseller 3.75% +7%
Pilots - MCI (Americas Market)* +6%
Copilot Studio Value Discovery $7.5k $5k $3.5k +5%
Direct Bill Partner 3.75% +7%
+6% Adoption Engagement (Americas) Market A Market B Market C
Copilot Value Discovery (Role-based) $7.5k $5k $3.5k
Copilot Evaluation Accelerator (Role-based) $25k
Copilot Adoption Accelerator – Large $50k $37.5k $25k
$20k $15k
Copilot Evaluation Accelerator – Small $15k $11.5k $7.5k *Core Max Cap: M365 E3/E5 $55.000, M365 Other $20.000 Copilot Adoption Accelerator – XLarge $75k $55k $37.5k
**Tier 1 incentive: 5% for US and Canada*, 6% for LATAM**
Copilot Evaluation Accelerator – Medium $25k $20k $15k CSP Adoption Accelerator for
Tier 1 Max Cap: M365 E3 $55.000*, M365 E3 $65.000** $8k $6.5k $5.5k
Microsoft Intune Suite Pilot $20k $15k $10k ***Tier 2: Max Cap: M365 E5 / Copilot / M365 Copilot $115.000 ME3/ME5

Teams Phone Pilot $20k $15k $10k FY25 H1 Americas CSP Business Incentive Rate Max Cap
Windows in the Cloud Assessment – Small $10k $7.5k $5k Premium Campaign (LC5272)
On incremental billed revenue for M365 NO MAX
Windows in the Cloud Assessment – Large $20k $15k $10k 10%
Business Premium above the baseline CAP
Copilot for Microsoft 365 10 for 10
Market A: United States, Canada Incentive Rate Max Cap
Market B: Brazil, Chile, Colombia, Mexico, Puerto Rico, Uruguay Campaign (GL5279)
Market C: will include all other countries/regions eligible for MCI Paid over billed revenue above 10 users 750k
per customer during campaign period
10%
(per PGA)
*This asset is nonbinding and intended as a high-level overview of the Campaigns/Programs. Full details and Campaigns requirements are set forth in the
applicable Terms & Conditions and Partner Agreement
 Americas FY25Q1 - Security
Listen & Consult Inspire & Design Empower & Achieve Realize Value Manage & Optimize

Pre-Sale At Sale Post-Sale

Enterprise Incentives A B C D Modern Work & Security Usage Incentive (previously OSU-M365) **
CO-OPs Funds Rate/CU Max Cap
MW Cloud – Premium 12% 4% 0.75% 0.75%
COOPs accumulated from FY24H2 (Jan-Jun) will be able to Azure Active Directory Premium 2 $3 $30k
MW Cloud – Standard 6% 2.5% 0.5% 0.5%
be executed for FY25H1 (Jul-Dec) – Claims up to Aug 15th Microsoft Defender Endpoint $3 $30k
Core (all other)* 1.25% 0.75% 0.45% 0.45%
Microsoft Information Protection $3 $30k
Account Services (EAS) 1.25% 1% 0.65% 0.45% Intune $1 $10k
M365 Breadth Customer Adds Cust add
CASA/EES - Strategic 8% 8% 8% 8%
Indirect Reseller +15% Insider Risk Manager (IRM) $1 $10k
CASA/EES - Standard 3.5% 3.5% 3.5% 3.5%
Direct Bill Partner +15% Microsoft Defender for Identity (MDI) $1 $10k
Payments up to 12 months after tenant creation MCI CSP – New Commerce Microsoft Defender for Office (MDO) $1 $10k
*Core **Tier 1 ***Tier 2
Experience Microsoft Cloud App Security (MCAS) $1 $10k
+5% ** Needs CPOR association
Indirect Reseller 3.75% +7%
Modern Work and Security Partner +6%
Market A Market B Market C
Pilots - MCI (Americas Market)* +5%
Direct Bill Partner 3.75% +7%
Threat Protection $6.4k $4k $1.5k
+6% Claiming Partner of Record (CPOR)
Microsoft Sentinel Migrate and Up to Up to Up to Resources
Modernize (>125k/year) $50k $40k $30k CPOR Guide
*Core Max Cap: M365 E3/E5 $55.000, M365 Other $20.000
CPOR associations overview - Partner Center | Microsoft Docs
**Tier 1 incentive: 5% for US and Canada*, 6% for LATAM**
Market A: United States, Canada Tier 1 Max Cap: M365 E3 $55.000*, M365 E3 $65.000**
Market B: Brazil, Chile, Colombia, Mexico, Puerto Rico, Uruguay ***Tier 2: Max Cap: M365 E5 / Copilot / M365 Copilot $115.000
Market C: will include all other countries/regions eligible for MCI

*This asset is nonbinding and intended as a high-level overview of the Campaigns/Programs. Full details and Campaigns requirements are set forth in the
applicable Terms & Conditions and Partner Agreement
Thank you