Microsoft presents a comprehensive range of updates, investments and program changes within Microsoft AI Cloud Partner Program. In the latest partner update, the tech giant describes how the focus during the new fiscal year (FY27) moving from individual AI pilots to integrated and scalable business processes, a strategy the company calls Frontier Transformation.
Partners get new AI tools, certifications and business opportunities
According to Andrew Smith, General Manager, Worldwide Partner Programs at Microsoft, feedback from the global partner network has been a key driver behind the changes. The updates include everything from new licensing models and program features to certifications, skills development, and international partner events.
Agent-based AI with Copilot Cowork
One of the most important news is the global launch (GA) of Copilot Cowork. Unlike previous AI solutions, which have primarily supported users in individual tasks, Copilot Cowork enables organizations to use AI agents to automate complex workflows that span multiple business systems.
The solution builds on Microsoft 365 Copilot and uses Copilot Credits, where customers are charged based on actual usage. Microsoft sees this as a new business opportunity for IT partners and consultants, who can help customers identify appropriate use cases, integrate AI into existing systems, and ensure governance, security, and cost control.
New offers for small and medium-sized businesses
To increase the adoption of AI among small and medium-sized businesses, Microsoft has made the previous promotional offers for Microsoft 365 Business with Copilot permanent SKUs starting July 1, 2026.
At the same time, the company is introducing a 25 percent discount for the combination Microsoft 365 Business Basic and Copilot Business, which works out to $21 per user per month for organizations with 1 to 300 users. The promotion runs through December 31, 2026.
Additionally, the existing 15 percent discount for Microsoft 365 Copilot Business is being extended, bringing the price to $18 per user per month until the end of the year.
For larger organizations, Microsoft also highlights Microsoft 365 E7 (Frontier Suite) and Microsoft Agent 365, solutions that combine productivity, AI, security and administration in a common platform for AI agents.
New safety certification replaces AZ-500
Microsoft is also implementing a major change to its cybersecurity certification program. The established certification Azure Security Engineer Associate (AZ-500) will expire in August 2026 and be replaced by the new Cloud and AI Security Engineer Associate (SC-500).
During a transition period, both AZ-500 and SC-500 will count towards qualifying for the designation Solutions Partner for Security and associated specializations, which will give partners the opportunity to adapt their skills.
New training courses and certificates of competence
To strengthen partners' knowledge in developing and managing AI agents, Microsoft introduces the new Frontier Transformation Engineer Badge. The certification demonstrates that a partner has the competence to develop agent-based solutions using Microsoft Copilot Studio, Azure AI Foundry and the broader Azure ecosystem.
In July 2026, the Microsoft even one Frontier Transformation Engineering Certification Week, where participants have the opportunity to prepare for certifications such as GH-300 (GitHub Copilot), AI-102 and AI-103 for AI development on Azure and AB-100, focusing on architecture for agent-based AI solutions.
Through the initiative Microskilling Microsoft also offers short training modules via Partner Skilling Hub, where videos and podcasts between two and nine minutes will make it easier for partners to continuously build new skills.
Expanded opportunities in Microsoft Marketplace
Microsoft also announces that the feature Multiparty Private Offers Microsoft Marketplace is now available in 30 European countries. The feature makes it easier for independent software vendors (ISVs) and channel partners to create joint customer offerings and conduct business directly through the marketplace.
Important dates for Microsoft partners
Ahead of the new fiscal year, Microsoft is highlighting several important activities for the partner network:
- MCAPS Start for Partners, on July 22, 2026, focusing on the strategic priorities for FY27.
- Microsoft Partner FY27 GTM Kickoff, on July 28, 2026, with a focus on AI, cloud services and cybersecurity.
- The nominations for Microsoft Partner of the Year Awards 2026 closed on July 7, 2026. The winners will be announced in November at the global event Microsoft Ignite.
Microsoft wants to accelerate the next phase of AI
Overall The initiative shows that Microsoft wants to help its partners to move from individual AI initiatives to scalable, agent-based business solutions. With new AI tools, updated certifications, expanded training efforts, and enhanced opportunities in the Microsoft Marketplace, the company is strengthening its partner ecosystem for FY27 and positioning AI agents, security, and skills development as central parts of its continued growth strategy.
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