Microsoft Announces Major Updates to FY24 Business Applications Incentives and Partner Programs

November 7, 2023 Microsoft Partner News

Microsoft has recently announced significant updates to its FY24 Business Applications incentives, demonstrating a continued commitment to investing in this solution area. The tech giant is not only focusing on incentives but also on several partner programs that aim to bolster skilling and go-to-market strategies.

The updates are set to impact all partners participating in Business Applications incentives. Microsoft is shifting all Biz Apps incentives to Microsoft Commerce Incentives (MCI), a move that promises simplicity and growth. The overall incentives opportunity is expected to grow year-over-year in FY24, with a particular emphasis on partner capacity and execution.

Microsoft is prioritizing impact in the small, medium, and corporate (SMC) customer segments, where partners play a crucial role in transforming from transactional to value-added services. Partners participating in MCI Biz Apps Presales Advisor incentives will see differentiated rates by customer segment, reflecting Microsoft's strategic investment in driving engagement with customers in the enterprise segment and the partner-led motion in SMC.

The tech giant is also maintaining a focus on both activities and outcomes, shifting all investments from the Online Services Usage Dynamics 365 program into postsales activities.

Several changes are being implemented in the incentives. For instance, the Biz Apps Presales Advisor will see differentiated rates for enterprise and SMC. The OSU Dynamics 365 will retire, with funding moving to postsales activities. Power Apps and Power Automate are removing Customer Insights and Power BI to focus on core Power Platform workloads. The Cloud Solution Provider is investing in customer adds for indirect providers and shifting investments from the Power Apps and Sales Pro product accelerators to Business Central and Sales Enterprise.

Microsoft is also introducing a high-water mark (HWM) growth pattern at the tenant level, which will enable tracking over time and eliminate the risk of paying for existing seats upon renewal or for recapture growth below the HWM.

In FY23, the HWM was determined at the subscription level, which posed challenges in tracking the HWM in instances of customer renewals or recurring revenue. However, in FY24, the HWM will be established at the tenant and workload level, making it easier to track and preventing overpayment in renewal or recurring revenue scenarios.

Partners will still need to reassociate via Claiming Partner of Record (CPOR) and Partner Center when agreements and subscriptions renew.

For more information on these changes, partners are encouraged to refer to the "Business Applications Incentives" slide in the MCI Program Guide. These updates underscore Microsoft's commitment to supporting its partners and enhancing its Business Applications solution area.

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