by Alex Zagury, CVP, Global Channel Sales
The small and medium-sized business (SMB) cloud market continues to grow rapidly. Internal projections, informed by IDC market trends, estimate that the SMB cloud market will reach $777 billion1 in FY26. A significant share of customer renewals occur in Microsoft Q3, making now a critical moment for Cloud Solution Provider (CSP) partners to prepare and act with intention.
Renewals are integral to that growth because they protect recurring revenue, deepen account relationships, and create natural opportunities to expand service and solution offerings through upsell. When approached strategically, renewals allow partners to address customers’ evolving business needs while introducing modern security and AI capabilities that drive additional value across the account.
Microsoft internal data shows that on-time renewals drive 20% more revenue than late renewals. When a subscription lapses, partners risk revenue contraction and missed opportunities to introduce new capabilities. Renewals are no longer routine; they are strategic, and the strongest outcomes result from starting conversations early and engaging customers well before a contract approaches its expiration date.
The Partner Guidance Deck provides a clear framework for driving CSP renewals, including sales guidance for hero scenarios and key investments and levers available to maximize the moment. When you connect renewal cycles with the right mix of secure AI productivity solutions, you can create long-term account value and build momentum across your AI Business Solutions practice.
Why timely renewals matter
A proactive renewal motion offers several advantages.
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