News
Microsoft Centers AI, Security and Partner Dogfooding at MCAPS
- By Gladys Rama
- July 15, 2025
Microsoft's second annual MCAPS for Partners event took place Tuesday, delivering a volley of updates and directives for its partners for fiscal 2026.
MCAPS (short for Microsoft Customer and Partner Solutions, the internal group for which MCAPS was originally intended before Microsoft expanded the event to its broader channel community last year) is designed to give partners insight into Microsoft's go-to-market strategy, sales priorities and partner program changes for the new fiscal year.
In a blog post by Microsoft Chief Partner Officer Nicole Dezen, the focus of this week's MCAPS event -- and of Microsoft in fiscal 2026 overall -- is to mine "the next chapter of opportunity powered by AI: customizable agents, copilots, and a new class of AI-first organizations we call Frontier Firms."
To that end, the company is re-orienting its go-to-market strategy for FY26 around three solution areas (see image below). AI Business Solutions focuses on Copilot deployments, as well as Microsoft 365 and Dynamics 365 adoption; Cloud & AI Platforms on driving modernization via AI and cloud; and Security, which speaks for itself.
[Click on image for larger view.] Microsoft's FY 2026 go-to-market strategy will focus around these three solution areas. (Source: Microsoft)
Microsoft is also implementing a raft of new incentives, benefits, investments and other programmatic changes to its Microsoft AI Cloud Partner Program. ISVs with certified software designations or that participate in Marketplace Rewards will receive more Azure credits. MSPs will get access to more Copilot seats, as well as to Copilot Studio, Dragon Copilot (for healthcare partners) and Microsoft 365 E5 Security. Partners will also be able to configure their benefits across different tenants -- a plus for partners with multiple branch offices.
Dezen encouraged partners to take advantage of these benefits and dogfood the Microsoft products on which their offerings are built, especially AI. "[B]ecoming their own customer zero by using Microsoft AI solutions within their organization is what separates partners who lead from those who follow," she wrote. "With fast-moving tech cycles, staying skilled and hands-on is no longer optional; it is essential."
To help partners grow their AI expertise, Microsoft is introducing several programs -- including hackathons, workshops and roadshows -- where they can learn about, get hands-on experience with, and earn certifications in Microsoft AI solutions.
In addition, Microsoft is rolling out new partner designations: Distributor, Support, Sovereign Cloud and Copilot (expected to be released this month). Two additional Windows-focused designations will come later in FY26. "One designation recognizes OEM partners building modern, hybrid-ready Windows devices," said Dezen. "The second is for partners selling and deploying Windows Commercial devices, including Copilot+ PCs, with value across the full deployment lifecycle."
Microsoft is also boosting investments across a broad range of areas -- including a 15 percent increase in security, 20 percent for Cloud Solution Providers (CSPs), 70% for partner-led Azure outcomes, 50 percent for Copilot within the AI Business Solutions group, and 20 percent for enterprise customer investment funds, along with an unspecified but "double-digit" increase in Microsoft 365 incentives.
Microsoft is planning to share more about its partner strategy for the coming fiscal year in its FY26 GTM Kickoff Event on July 22.