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nick_Anag's avatar
nick_Anag
Iron Contributor
Sep 16, 2025

FY26 CSP Incentives - Ann/Mon & Mon/Mon Subscriptions

Dear community,

We are a Distributor (ex. Ind. Provider) in CSP and we would like you to help us on understanding the changes in our Incentives in FY26.

As announced already, starting October 1, 2025, the FY26 levers and rates will be in place. We would like your assistance to determine the two following use case:

a) one of our Indirect Resellers has a M365 subscription with monthly commitment and monthly payment. Within September 2025, this specific subscription will give us incentives under the FY25 levers and rates (will be recalculated in February 2026 under the FY26 levers and rates). So, based on the announcement, on October 2025, this subscription will start generating incentives under the FY26 levers and rates. Could you please confirm my understanding or reshape accordingly?

b) one of our Indirect Resellers has a M365 subscription with annual commitment and monthly payment, with the renewal of the subscription to be on 15 March 2026. Based on our understanding, until the renewal, this subscription will be generating incentives based on the FY25 levers and rates due to the price protection of the subscription for the whole year, and will switch on generating incentives based on the FY26 levers and rates on the renewal date (i.e., 15 March 2026). Could you please confirm my understanding or reshape accordingly?

Really much appreciated in advance for your significant help on this critical topic for our target setting and business decisions.

Warm regards,
Nick

incentives

4 Replies

  • MartijnBreet's avatar
    MartijnBreet
    Iron Contributor
    Sep 18, 2025

    Hi Nick,

     

    Based on my interpretation my 2c's:

     

    A) yes, based on the CSP incentives FY26 walking deck / MCI guide October would be first month with FY 26 rates & rules

    B) no. Incentives are based on billed revenue; and after October new rates/policies apply regardless of what price the subscription was purchased for. Eligibility for incentives might change, the rate stayed the same so I would focus on eligibility first, not the rates. 

    Regards,

    Martijn
     

  • MartijnElfers's avatar
    MartijnElfers
    Bronze Contributor
    Sep 17, 2025

    Incentives are separate from, and not included in the subscription price protection. Thus as of October all partners will earn incentives (if eligible) on all customers and subscriptions based on the FY26 Guide. So point B is incorrect. 

     

    Point A is correct, but that's irrespective of the commitment term. As mentioned, as of October all incentives will be earned based on FY26 Guide. 

    • nick_Anag's avatar
      nick_Anag
      Iron Contributor
      Sep 18, 2025

      MartijnElfers​ much appreciated for your reply. What are you saying is that incentives have nothing to do with the subscription term.  Either annual/annual, annual/monthly or monthly/monthly subscriptions will turn to FY26 guide starting Oct. 1, 2025. Is my understanding correct???

      TBH, I had the opinion that an annual/annual & annual/monthly subscription will generate FY26 incentives on its renewal after Oct. 1, 2025.

      Thank you in advance!

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