Microsoft Partner Incentives (MPI) and Investments Changes for FY’ 2023

Summary:

Learn how Microsoft Partner Incentives and Co-op funding is working in FY’2023 and discover the changes being introduced.

Microsoft Partner Incentives (MPI) and Investments Changes for FY’ 2023

Learn how Microsoft Partner Incentives and Co-op funding is working in FY’2023 and discover the changes being introduced.

Microsoft Partner Incentives (MPI) and Investments Changes for FY’ 2023

Estimated Read Time: 3 minutes

Intended Audience: Microsoft Partners

As of late, our Microsoft Partner clients have been asking what is happening with Microsoft Partner Co-op funding for FY 2023. With the launch of the new Microsoft Cloud Partner Program (MCPP) the answer to this question wasn’t completely defined, until now.

We outline the options and opportunities for Microsoft Partners throughout this article. Please get in touch should you have further questions.

What are Co-operative Marketing Funds?

Cooperative (co-op) marketing funds are funds that you earn through Microsoft Incentive Programs by claiming reimbursement for activities that support Microsoft product awareness.

The funds help Microsoft Partners, like yours, develop marketing strategies to gain leads, promote your brand, train your employees, incentivize your sales, and conduct other marketing activities that increase brand awareness to drive growth of your sales pipeline. The purpose of these funds is not only rewarding partners but also reinvesting in their business to make future results more achievable.

Microsoft Partner Incentive Program Updates

Microsoft Partners are integral to accelerating Microsoft customer’s solutions and success. In recognition, Microsoft has brought about changes to partner incentives and investments in fiscal year 2023. The co-op program running across two six-month (fiscal half-year) periods: FY23 H1: July 1, 2022 – December 31, 2022, FY23 H2: January 1, 2023 – June 30, 2023, in which funds earned in one 6-month period are used in the next 6-month period, is transforming to enable partners to deliver value to customers.

From July 2022, Microsoft has updated the incentives and investments portfolio to focus on three design principles, aligned to Microsoft’s business priorities, partner opportunity, and customer needs.

Here are the updates coming to partner incentives and incentive programs:

  1. Partners that have established effective relationships with enterprises will see no change in the overall effective rate as it remains consistent with that of FY22 program rate.
  2. Cloud Solution Provider (CSP) partners continue to benefit from Microsoft investments through breadth earning opportunities in the Microsoft Commerce Incentives (MCI). In the new commerce experience, Microsoft is adjusting Modern Work and Security core program rates for Direct Bills and Indirect Reseller Partners to be consistent with the FY22 legacy CSP incentives program.
  3. Through the Partner Admin Link, Microsoft is rebalancing incentives on Azure consumed revenue. This rewards partners that display their expertise with specializations.
  4. Microsoft Partners will see new activity-based incentives with Modern Work, Security, Business Applications, and Azure in FY23, as well as an improved operational experience in the Microsoft Commerce Incentives program.
  5. The most recent addition to the list of changes is the cooperative marketing funds launching on November 1st, 2022. This date onwards, partners participating in Microsoft Commerce Incentives (MCI) program will begin earning cooperative marketing funds. However, to earn co-op funds, partners must be enrolled in the MCI program and have a completed bank and tax profile for the co-op earning type in Partner Center and meet program requirements. Please note, this profile is separate from the current rebate bank and tax profile. Partners will see incentives split in 60% rebate – 40% co-op earning applied to the MCI Microsoft 365, Dynamics 365, and Azure new commerce Cloud Solution Provider (CSP) engagements. You can dive into further incentive details at aka.ms/partnerincentives.
If your earning period is Your fiscal half-year period is Your usage period is Your claim period is
July - Dec 2022 FY23 H1 Jan - June 2023 Feb 16 - Aug 15, 2023
Jan - June 2023 FY23 H2 July - Dec 2023 Aug 16, 2023 - Feb 15, 2024

Microsoft Cloud Partner Program and Partner Incentives

Microsoft has revamped the partner program and incentives to help Microsoft Partners deliver enhanced workplace solutions and innovations to customers. This empowers Microsoft Partners like you to solve customer problems and get rewarded for your customer wins.

As we step into the new Microsoft Cloud Partner Program, it is noteworthy to mention that partners that have retained or renewed their legacy competencies by September 30, 2022, can earn incentives in FY23 program terms based on eligibility.

Build and innovate with Microsoft by exploring your co-op marketing fund options today.

Transitioning with Microsoft Partner Marketing Agency

As the dedicated marketing partner for Microsoft CSPs, MSPs, VARs, ISVs, SIs, and Microsoft Resellers, the experts at Maven Collective Marketing are here to help you seamlessly transition to the Microsoft Cloud Partner Program.

Reach out to us with your questions about the transition and check out our blog for more insights.

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