Microsoft Announces Major Updates to Modern Work and Security Usage Incentive for FY2024

November 10, 2023 Microsoft Partner News

In the fiscal year 2024, Microsoft has announced significant updates to its Modern Work and Security Usage incentive, previously known as OSUM365. The incentive has now been incorporated into Microsoft Commerce Incentives (MCI) to offer a more integrated and seamless user experience. This update, announced on November 10, 2023, impacts all partners participating in Business Applications incentives.

One of the key changes this year is the introduction of a high-water mark (HWM) model. This model is designed to reward partners for driving customer deployment and adoption growth. The HWM tracks the highest value of measured units by tenant and workload over time, a pattern that is used across multiple solution areas.

To illustrate how this works, consider this example: In January, five units are billed and are compensable. In February, 10 units are billed, with five incremental units compensable. In March, 20 units are billed, with 10 incremental units compensable. In April, 22 units are billed, with two incremental units compensable. In May, 15 units are billed, but no incremental units are compensable as the HWM equals 22. In July, 25 units are billed, with three incremental units compensable as the HWM remains at 22.

This new model allows partners to earn when driving Monthly Active User (MAU) growth and provides a larger addressable market with enhanced earning opportunities. The incentivized workloads align with Microsoft field priorities, ensuring up-selling and renewal with a focus on key strategic products. Moreover, earnings are limited to Paid Available Units (PAU), which means that only paid growth is rewarded.

To reconcile earnings for Modern Work and Security Usage, partners need to understand several key terms. Monthly Active Users (MAU) refers to the number of unique users, by workload, that have taken an intentional action in the past 28 days. Monthly Protected Users (MPU) refers to the number of distinct users, by Security workload, that were protected in the past 28 days. Paid Available Units (PAU) is a measure of "paid" licenses on a tenant, such as Microsoft has recognized revenue for those licenses. Compensable Units refer to MAU/MPU growth above the HWM, not exceeding total PAU. Earnings can be calculated as compensable units multiplied by the rate card.

For more detailed insights into earnings and payments, partners can refer to the Earnings page. This page provides all reconciliation attributes in the Earnings: Default download, for example, by MAU, PAU, PriorHWM, compensable units, workload.

For more information on these updates, partners can refer to the "Modern Work and Security Usage Incentive" slide in the MCI Program Guide. These updates mark a significant step forward in Microsoft's ongoing efforts to provide a more integrated and rewarding incentive experience for its partners.

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