Microsoft AI Cloud Partner Program Gets Big Change: No More Action Packs
About seven months after unveiling the AI Cloud partner program, Microsoft is removing Action Packs and legacy benefits. But it’s also encouraging more partners to earn the Solutions designation.
Microsoft giveth and Microsoft taketh away. About seven months after unveiling the AI Cloud Partner Program, the software giant is adding some product licenses, while removing certain self-serve packs and legacy benefits.
First up, partners can expect to see more than 20 new license options as of Jan. 22, 2025. Those will include some Copilot products, as well as Defender for Endpoint and GitHub.
“[A]ccess select partner benefits packages, Solutions Partner designations, or specializations today to be among the first to enjoy these new benefits as soon as they launch,” Julie Sanford, vice president of partner go-to-market, programs and operations, wrote in an Aug. 6 blog.
Be aware, though, that Microsoft also is axing some offerings from its AI Cloud Partner Program. As such, also as of Jan. 22, Microsoft no longer will sell Action Pack, Learning Action Pack, or offer legacy silver and gold benefits.
There is some flexibility, however.
“Partners who purchase or renew these legacy benefits packages before Jan. 22, 2025, will be able to use their benefits for 12 months from their purchase/renewal date,” Sanford wrote. “Those with an eligible active legacy silver/gold purchase status as of Jan. 21, 2025, will be eligible for the remainder of the FY25 CSP incentive term.”
Microsoft's Julie Sanford
That time frame runs from Jan. 22-Sept. 30, 2025.
“You can continue to access product, support, and advisory benefits through … offerings that provide more choice and value for our partners,” Sanford explained. “While the new product licenses will not be added to legacy benefits offerings − which include Microsoft Action Pack, Learning Action Pack or legacy silver/gold benefits − our updated offerings empower you to do more, and with the latest Microsoft products to help you reach your business goals.”
More Insights Into Microsoft AI Cloud Partner Program Changes
Sanford offered more details as Microsoft ends the silver and gold benefits, and the two Action Packs.
Specifically, those silver and gold benefits will remain effective for one year after a partner last buys or renews them. Yet, they will not undergo the January 2025 update, Sanford said.
“Therefore, we encourage every partner to purchase a partner benefits package today to access the new benefits as soon as they are released on Jan. 22,” she wrote. “There are no requirements to purchase, and your partner admin can perform the transaction in Partner Center.”
Here’s what Sanford and Microsoft are recommending as partners decide which of the three packages to choose:
Overall, Microsoft is encouraging its qualified AI Cloud partners to earn the Solutions Partner designation “to strengthen your benefits portfolio and stand out in the marketplace,” Sanford wrote.
For partners with a Microsoft Action Pack or Learning Action Pack, “we recommend the Partner Success Core Benefits and Partner Success Expanded Benefits packages, depending on the size and needs of your organization,” Sanford said. “These benefits are designed to enhance your cloud and AI capabilities and help drive long-term profitability.”
Finally, for partners with legacy silver or gold benefits, Sanford said, “we recommend Partner Success Expanded Benefits. … You can also strengthen your portfolio and stand out in the marketplace with a Solutions Partner designation.”
Sanford said the new packages will help partners acquire practical experience, and grow and scale their businesses.
“Partner benefits packages will continue to evolve, and purchasing a package ensures you get access to the latest benefits each time you renew,” she noted.
Plus, Sanford added, the cost of each package “is far less than its retail value.”
Microsoft AI Cloud Partners React
Microsoft has tried before to eliminate Action Pack and the silver and gold benefits from its partner program, only to be met with protest. This time, the decision might stick.
“They tried to do this a couple years ago and the community had a meltdown and they reinstated it,” wrote Reddit user Rockitnick on Aug. 6. “… It was a good value to get stuff up and running and test out stuff in the lab. It’s a shame they’re torpedoing it again.”
“[Action Pack] just kept getting neutered and offering less and less every year so that’s not surprising,” chimed in Reddit user fp4.
Other Microsoft AI Cloud partners expressed more optimism.
“Yes, the on-premise [is] gone except if you have a solutions designation, but the new partner benefits are more essential in cost than the on-premise licenses and, for me, more valuable, and I guess a lot of partners think the same,” noted user tc982.
A peer, user MDL1983, made a similar observation.
“Personally, I don't feel too bad about this. The price isn't too bad, IMO, though I am a very small shop. For cloud-only, it's a no brainer. … I expected worse when I read this initially.”
What Is Microsoft’s AI Cloud Partner Program Goal?
Microsoft’s overarching aim is to drive more partners into AI and cloud — and neither of those goals should come as a surprise.
Microsoft kicked off the generative AI craze in early 2023 with its OpenAI partnership, and has steadily encroached on rival Amazon Web Services’ public cloud computing territory via Azure. In the meantime, the company has infused AI capabilities into SaaS platforms including Microsoft 365. On the whole, Microsoft has made no secret of its intent to dominate AI and cloud.
Indeed, despite the recent tech stocks selloff, AI is highly likely to resurge in popularity with investors. Certainly cloud isn’t going anywhere, and AI can't function well or in a widespread manner without cloud computing. Thus, for Microsoft, gaining traction in AI and cloud represents a key goal, which CEO Satya Nadella addressed in the company’s July 30 earnings call with analysts.
“AI doesn't sit on its own, right?” Nadella said in response to an analyst’s question. “We have a concept of design wins in Azure. So, in fact, 50% of the folks who are using Azure AI are also using a data meter. That's very exciting to us because the most important thing in Azure is to win workloads in the enterprise. And that is starting to happen.”
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