Cloud Solution Provider enhancements

Frequently Asked Questions (FAQ)

Updated August 13, 2025

Contents
Three-year terms for Microsoft 365 E3, E5, and Microsoft Teams Enterprise ................ 1
Ability to change subscription term for EOS with conversion SKUs .............................. 7
Microsoft 365 E3, E5, and E5 Security and E5 Compliance mini suite promotions for
three-year SKU............................................................................................................ 8
Improving the transition for Enterprise Agreement customers renewing to CSP ........ 20
Automating the support process for midterm upgrades............................................. 27
Net Paid Seat Adds reporting .................................................................................... 29
Three-year terms for Microsoft 365 E3, E5, and
Microsoft Teams Enterprise

Which products will be available with three-year subscription terms as of June 1,

2025?
The SKU titles in these price lists include the words “3 Year” to distinguish them from
annual or monthly subscription terms.

• General Availability: Microsoft 365 three-year term SKUs on the June 1, 2025, CSP
price list, named as “3 Year”:
 Microsoft 365 E3 without Teams
 Microsoft 365 E5 without Teams
 Microsoft Teams Enterprise standalone
 Available in the May 1, 2025, CSP Price List Preview
• End-of-Sale (EOS): Microsoft 365 three-year SKUs on the June 1, 2025, CSP EOS
price list (also named as “3 Year ”):
 Microsoft 365 E3 with Teams
 Microsoft 365 E5 with Teams
 There is no EOS Price List Preview

Each has a SKU ID. These are not terms on the existing Enterprise SKUs (also known as
ESKUs), but new SKU IDs. Partners can review the full set of new GA three-year SKUs in
the May 1, 2025, price list preview in the Partner Center Pricing workspace.

Will the price of the new Microsoft 365 three-year SKUs in CSP be the same price
as the Microsoft 365 one-year SKUs in CSP?
Yes, the price per user per year will be the same as the equivalent one-year term SKU in
CSP.

Will the partner margin for the new Microsoft 365 three-year SKUs in CSP be the
same as the partner margin for the Microsoft 365 one-year SKUs in CSP?

Yes, the margin will be the same as the equivalent one-year term SKU in CSP.

What billing plans are available for the new three-year SKUs?

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The billing plans available for these new three-year offers will be:

1. Triennial/triennial (pay upfront)

2. Triennial/annual

Monthly billing plans will not be available.

Will the 5% monthly pricing plan update apply to the new three-year SKUs for E3,
E5, and Teams Enterprise in CSP?

No. The 5% increase only applies to the annual term, monthly billing plan option (that is
not available for the new three-year SKUs for E3, E5, and Teams Enterprise offers). The
new three-year E3 and E5 SKUs will only be available with triennial/triennial and
triennial/annual billing plan options. Please review this Microsoft Learn article for more
information on monthly billing plan price increases.

Is there a minimum seat requirement for the new three-year SKUs?

Yes. There is a 100-seat minimum requirement for purchase of any of the new three-
year term subscriptions for Microsoft 365 E3, Microsoft 365 E5, Microsoft Teams
Enterprise, Microsoft 365 E5 Security and Microsoft 365 E5 Compliance mini suites. This
requirement will be enforced at the individual SKU subscription level (on the purchase
order); it is not cumulative at the product or tenant level.

As an example: to purchase a three-year term of Microsoft 365 E3, the partner must
purchase at least 100 seats of the specific Microsoft 365 E3 SKU – in this example,
Microsoft 365 E3 without Teams. Alternatively, if a partner tries to purchase 50 seats of
Microsoft 365 E3 three-year term without Teams and 50 seats of Microsoft 365 E3 three-
year term with Teams, these purchases will not be successful, as neither of the individual
SKU-level purchases meets the 100-seat threshold requirement per SKU.

Can partners buy multiple subscriptions of the same product for their customers
with different term durations?
Yes, partners can buy subscriptions of the same product with different subscription
terms. For example, a partner can purchase a three-year subscription of Microsoft 365
E3 for 300 seats and a monthly subscription of Microsoft 365 E3 for 20 seats for the
same customer tenant. Each individual subscription must meet the minimum seat
requirement for the respective SKU.

3
Why are seat minimums required for the E3, E5, and Teams Enterprise three-year
terms and E5 Security and E5 Compliance mini suites, but not for the E3, E5, and
Teams Enterprise annual subscription terms?
This 100-seat minimum requirement ensures that the three-year term is available to
customers who want to make a more substantial, long-term commitment to these
products. Larger deployments often lead to economies of scale, where the cost per user
decreases as the number of users increases. This makes the three-year offers more cost-
effective for customers with larger user bases, providing them with better value for their
investment. By leveraging a minimum seat requirement, partners can ensure that the
customers who opt for these three-year terms are those who are likely to benefit the
most from the stability and predictability of long-term pricing. This helps provide a
seamless and consistent experience for customers, especially in markets with fluctuating
exchange rates.

Which customers can purchase the new three-year terms?

Any new or existing Microsoft customers can purchase a minimum of 100 seats for the
new three-year term subscriptions for E3 without Teams, E5 without Teams, and E5
Security and E5 Compliance mini suites or Teams Enterprise products found in the May
1, 2025, price list preview. However, only customers who have active subscriptions of the
EOS Microsoft 365 or Office 365 suites with Teams can renew or upgrade their
subscription to the new EOS E3 or E5 with Teams three-year SKUs, with a minimum
purchase commitment of 100 seats.

What are the partner benefits of the new three-year terms for E3, E5, Teams
Enterprise, and E5 Security and E5 Compliance mini suites?
The new three-year term SKUs help partners establish long-term relationships with
customers, to help them transition from on-premises, hybrid, or Office 365 products to
Microsoft 365 and improve ROI. These new offer terms also help partners offset the
acquisition, adoption, and administration costs of managing larger, more complex
customers, while enabling new services opportunities supported by a longer-term
subscription.

4
What are the customer benefits of new three-year terms for E3, E5, Microsoft 365
E5 Security and E5 Compliance mini suites, and Teams Enterprise?

Three-year terms enable customers to manage their costs by locking their Microsoft
product purchase price for three years. This is especially important in markets with local
currencies, where exchange (FX) rate fluctuations impact price predictability and
operating costs. The new Microsoft 365 three-year subscription terms in CSP also
provide a seamless transition path for customers on expiring Enterprise Agreements (EA)
that are renewing into the Microsoft Customer Agreement (MCA) through a CSP
partner.

Why is Microsoft making three-year terms available only for E3, E5, E5 Security
and E5 Compliance mini suites, and Teams Enterprise SKUs now?

Microsoft 365 E3, Microsoft 365 E5, and Microsoft Teams Enterprise are foundational
solutions that help Microsoft cloud customers adopt AI at scale and protect identities,
applications, and data while boosting productivity and collaboration. By offering three-
year terms, we are making a strategic investment to support and enhance our
customers’ access to these products.

Will CSP partners be able to reduce seat quantities for customers who have
workforce changes over the duration of their three-year Microsoft 365
subscription?

No. As with other per-user subscriptions through the MCA, customers cannot reduce
seats at any time, nor cancel the purchase beyond the partner’s cancellation policy at
purchase.

Will Microsoft’s seven-day cancellation policy apply to the new Microsoft 365
three-year SKUs?

Yes. The new Microsoft 365 three-year subscription terms follow all the existing CSP
rules regarding cancellation and management scenarios for subscriptions.

Will Microsoft add three-year terms for all CSP products over time?
Microsoft continues to evaluate the introduction of three-year terms for other products
available through CSP in the future.

5
Will Microsoft provide bankruptcy or fraud protection for CSP partners whose
customers fail to pay their Microsoft 365 three-year subscriptions?
No. We encourage partners to assess their customer accounts carefully when selling any
longer-term subscriptions for any Microsoft product. Consider adopting these best
practices on managing online transaction risk.

Are Education, Nonprofit, and U.S. Government Community Cloud (GCC)

customers eligible for the new three-year SKUs?
The new Microsoft 365 three-year term is available only to customers purchasing
commercial products (segment specific pricing for Education, Nonprofit, and U.S.
Government Community Cloud (GCC) customers is not currently available).

Can a customer buy a new three-year SKU with a CSP partner, but change to a
different partner during the three years and continue with the same subscription?
Yes. Partners can leverage the available partner-to-partner transfer capability (also
known as P2P) capability in Partner Center to transfer active three-year term
subscriptions.

Will customers be allowed to upgrade to Microsoft 365 3-year SKUs midterm?

Yes. Partners can upgrade customers who have Microsoft 365 Business, Office 365
Enterprise, or Microsoft 365 Enterprise 1-year SKU subscriptions in CSP, to Microsoft 365
E3/E5 3-year SKUs midterm and at renewal.

Partners can also upgrade customers with subscriptions for the end-of-sale (EOS) SKUs
(Office 365/Microsoft 365 Enterprise suites with Teams 1-year SKUs) at midterm and
keep their Teams entitlement.

Can partners move customers on Microsoft 365 E3 with Teams 1-year SKU
subscriptions in CSP to the Microsoft 365 E3 with Teams 3-year SKUs midterm and
at renewal?
Yes. Customers on Microsoft 365 E3 with Teams 1-year SKU subscriptions in CSP can
move to the Microsoft 365 E3 with Teams 3-year SKUs midterm and at renewal (same
for M365 E5 with Teams).

6
When a customer wants to upgrade midterm from an annual term to a three-year
term, will partners be able to co-term the subscription to the same month as the
customer's other annual subscriptions?
Coterminous terms in CSP allow a customer to align subscription end dates across
multiple subscriptions.

Can the Microsoft 365 E5 Security and Microsoft 365 E5 Compliance mini suites be
co-termed with the Microsoft 365 3-year SKUs purchased in June?

Yes, they can be co-termed with the 3-year Microsoft 365 SKUs purchased in June to
have the same end date.

Ability to change subscription term for EOS with

conversion SKUs

What changes is Microsoft making to subscription term flexibility for EOS with
conversion SKUs (Microsoft 365 and Office 365 Enterprise Suites with Teams)?

Starting May 1, 2025, CSP partners who have customers with Microsoft 365 or Office 365
Enterprise suites that include Teams will be able to change their customers’ subscription
term while retaining the customers’ Teams entitlement. This change permits
subscription changes both at midterm and at renewal for EOS with conversion SKUs.

What subscription term changes are allowed, midterm?

CSP customers can change their subscription term midterm to a longer-term duration
(i.e., monthly to annual, annual to triennial) while retaining their Teams entitlement.
However, a customer who has a one-year subscription cannot modify their subscription
midterm to a monthly term. Additional detail on term adjustment rules can be found in
this Microsoft Learn article.

If a CSP partner renews an EA customer to CSP with an annual term subscription of

a Microsoft 365 Enterprise suite in April 2025, will the CSP partner be able to
change the term for that customer’s Microsoft 365 Enterprise suite to a three-year
subscription term in June 2025?

7
Yes. Here is an example: A CSP partner renews an EA customer to CSP with an annual
term subscription of a Microsoft 365 Enterprise suite with Teams on April 15, 2025—but
the customer wants the three-year price protection afforded by a three-year term. As of
June 1, 2025, the CSP partner will be able upgrade their subscription from the
customer’s one-year Microsoft 365 Enterprise suite to a three-year subscription term.

What are the Product IDs for the EOS with conversion SKUs in CSP that partners
will be able to change subscription terms for, while maintaining the Teams
entitlement, starting May 1, 2025?

• O365 E1 (Product ID: CFQ7TTC0LF8Q)

• O365 E3 (Product ID: CFQ7TTC0LF8R)
• O365 E5 (Product ID: CFQ7TTC0LF8S)
• M365 E3 (Product ID: CFQ7TTC0LFLX)
• M365 E5 (Product ID: CFQ7TTC0LFLZ)

Microsoft 365 E3, E5, and E5 Security and E5 Compliance

mini suite promotions for three-year SKU

What is the promotion(s)?

Microsoft is providing a 10% discount off the partner net price for E3 and E5 three-year
subscription terms, available for either upfront or triennial/annual billing frequency for
all eligible E3 and E5 subscriptions purchased during the promotional period. Please
note this promotion will not apply to Microsoft 365 subscriptions purchased on annual
or monthly subscriptions terms.
Disclaimer: Microsoft may change terms or terminate the offer at any time. Please note
that promotional pricing applies for the full three-year subscription term. Customers will
renew into standard, non-promotional pricing at their subscription’s three-year
anniversary/expiration date.

Microsoft is launching two promotions on June 9, 2025:

8
Promotion 1: Accelerate with Microsoft 365 E3 three-year 10% offer (3 Year SMC
SKU)

Product Name Product ID Part Number Promo ID

CFQ7TTC0LFLX/002 39NFJQT2
Microsoft 365 E3 SPE_E3
Q 7WQP
Microsoft 365 E3 no CFQ7TTC0LFLX/002 39NFJQT2
Microsoft_365_E3_(no_Teams)
Teams K 7WQP
Microsoft 365 E3 EEA CFQ7TTC0LFLX/002 39NFJQT2
O365_w/o Teams Bundle_M3
(no Teams) N 7WQP

Promotion 2: Accelerate with Microsoft 365 E5 three-year 10% offer (3 Year SMC
SKU)

Product
Product ID Part Number Promo ID
Name
Microsoft
CFQ7TTC0LFLZ/002W SPE_E5 39NFJQT27WLH
365 E5
Microsoft
Microsoft_365_E5_(no
365 E5 no CFQ7TTC0LFLZ/002R 39NFJQT27WLH
_Teams)
Teams
Microsoft
O365_w/o Teams Bu
365 E5 EEA CFQ7TTC0LFLZ/002T 39NFJQT27WLH
ndle_M5
(no Teams)
Microsoft
365 E5
without SPE_E5_NOPSTNCON
CFQ7TTC0LFLZ/002V 39NFJQT27WLH
Audio F
Conferencin
g
Microsoft
365 E5 no
Microsoft_365_E5_(no
Teams
_Teams)_without_Aud
without CFQ7TTC0LFLZ/002Q 39NFJQT27WLH
io_Conferencing
Audio
Conferencin
g
Microsoft Microsoft_365_E5_EE
CFQ7TTC0LFLZ/002S 39NFJQT27WLH
365 E5 EEA A_(no_Teams)_withou

9
 (no Teams) t_Audio_Conferencin
without g
Audio
Conferencin
g

When is the promotion available?

This promotion is available for partners who sell to eligible customers starting on June 9,
2025, through December 31, 2025.

What channels or platforms will the promotion be available through?

This promotion is available through the CSP new commerce platform only.

Is there any promotion license minimum or maximum eligibility?

Yes. The three-year E3 and E5 “SMC SKUs” all have an individual seat minimum of 100
seats, which the “Accelerate with Microsoft 365” three-year promotions will inherit.
The “Accelerate with Microsoft 365” three-year promotions also have a 2,400 license
seat maximum. Both the promotion seat minimum and maximum are enforced at an
individual SKU level. As an example, a customer may purchase 2,400 seats of E3 and
2,400 seats of E5 and qualify for the “Accelerate with Microsoft 365” three-year
promotions.

In what geographies is the promotion available?

The promotional discount is available in all geographies where Microsoft 365 is sold
through the CSP new commerce experience.

Who is eligible for this promotion?

This promotion is available only to new-to-Microsoft 365 customers (subject to the “First
Purchase” check). The “First Purchase” constraint only enables the promotion to be
applied if the customer has no previous purchase history of the respective E3 or E5
product SKUs. This check spans both legacy and new commerce platforms across all
Microsoft transaction channels (Direct, CSP, EA, amongst others). If a customer

10
previously owned Microsoft 365 E5 in EA, they will not be eligible for the Microsoft 365
E5 3-year 10% promo or the Microsoft 365 E5 1-year 15% promo in CSP.

As part of the Microsoft 365 3-year promo launch in June, we are addressing some in-
market issues and introducing enhanced “new to offer” (NTO) eligibility constraints. The
NTO constraint capabilities will ensure:

• Trial history will no longer impact promo eligibility

• Customer eligibility will be checked at the PFAM level (not product level),
blocking undesired leakage (for ex. a customer will not qualify for the Microsoft
365 E3 three-year 10% promo if they have previous purchase history of Microsoft
365 E3 with Teams or M365 E3 No Teams)
• Mid-term upgrades with NTO promos and term change are now possible if
customer has no purchase history

I have a customer with a current E3 subscription. Can they purchase a new E3 no

Teams subscription and qualify for the promotion?

No. This promotion is intended only for customers without a previous purchase history
of any E3 SKUs—with or without Teams. This customer would not qualify for a
promotion for E3 with Teams or E3 No Teams. Customers with a purchase history of E3
No Teams would also not qualify for the E3 promotion.

Likewise, a customer with an E5 purchase history would not qualify for the E5 No Teams
promo. Customers with a purchase history of E5 No Teams would not qualify for a
promo when purchasing E5 for the first time.

I have customers who currently have an E3 annual subscription. If I convert that

subscription to an E3 three-year subscription, will I qualify for the three-year
promotion?

No. Customers who are converting an annual subscription of E3 or E5 to a three-year

subscription of the equivalent product will not qualify for the three-year new-to-offer
promo.
This promotion is designed to facilitate customers’ upselling from Office 365 to
Microsoft 365, E3 to E5, or new-to-Microsoft cloud migrations. Term changes for the
same product will not qualify for any new-to-offer promotion.

11
I have customers who currently have E3 annual subscriptions with the Accelerate
with Microsoft 365 E3 Annual Term Promo. What happens if they conduct a
midterm term change to an E3 3-year subscription?
As mentioned above, customers conducting a midterm change from an annual to a
three-year term subscription on the same product will not qualify for this three-year
new-to-offer promotion. The resulting three-year subscription will have standard non-
promotional pricing applied for partners.

Customers with existing annual Microsoft 365 subscriptions who wish to retain their
current one-year promotion discount—but want to transition to a three-year
subscription—should schedule a term conversion to take effect at their anniversary or
renewal date.

I have customers who qualify for both the “Accelerate with Microsoft 365” annual
term offers and three-year offers. Which should I choose?

Microsoft is currently running separate 15% off new-to-offer promotions for annual
term subscriptions of E3 and E5, available through June 30, 2025. New-to-offer
customers can choose between the 15% annual term offer or the 10% three-year term
offer. You can receive the latest information on all promotions in the Global Promo
Readiness Guide.

Partners can use either offer as a strategic tool to unlock opportunities for upselling
customers. We believe that the multi-year term and promotion may unlock further
opportunities for partners who have customers that need additional deal-making
flexibility to commit to fully transitioning to Microsoft 365, guaranteeing a longer-term
relationship to improve customer ROI with Microsoft 365.

Customers who prefer an annual term with a monthly billing plan option can still opt for
the one-year E3 or E5 “Accelerate with Microsoft 365” offers before expiration on June
30, 2025.

I have customers who currently have E3 annual subscriptions. Will they qualify for
the “Accelerate with Microsoft 365” E5 three-year promotion if I upgrade them
midterm?

Yes. If the customer is new to E5 and upgrading an eligible subscription to the three-
year E5 SKU, they will qualify for the three-year E5 promotion.

12
I thought E3 and E5 have been placed in EOS in response to concerns raised by the
European Commission. How can I transact these SKUs and qualify for the three-
year promotion?
Customers with eligible Office 365 or Microsoft 365 “with Teams” SKUs can convert or
upgrade those subscriptions to the E3 or E5 with Teams SKUs, as those products are in
the “EOS with Conversion” lifecycle state.

As of May 1, 2025, customers who have Microsoft 365 or Office 365 Enterprise suites
with Teams subscriptions can upgrade and change the subscription term length while
maintaining their Teams entitlement.
As an example, a customer with an annual subscription of Office 365 E3 with Teams can
immediately schedule an upgrade to a three-year subscription of E3 with Teams or E5
with Teams. If this customer is new to E3 or E5, they will also qualify for the respective
“Accelerate with Microsoft 365” three-year promotion.

Will customers without active subscriptions of Microsoft 365 or Office 365 suites
with Teams be able to purchase the E3 or E5 suites with Teams and leverage the
respective three-year promotion?
No. As stated above, only existing customers with eligible Office 365 or Microsoft 365
“with Teams” SKUs can convert or upgrade those subscriptions to the E3 or E5 with
Teams. These customers also have the option to upgrade eligible subscriptions to the
365 E3 or E5 without Teams three-year SKUs. Customers who do not have active
subscriptions of licenses with Teams can only purchase Microsoft 365 No
Teams/Microsoft 365 EEA (no Teams) plans.

What type of customers should partners target with this promotion?

This promotion is an opportunity for partners to explore new or existing customers that
want to digitally transform and are looking for advanced Microsoft security and
compliance capabilities combined with Microsoft 365’s world class productivity and
collaboration solutions. Given the promotion is available to new-to-E3 and E5
organizations, partners should target:

• Existing CSP customers on Office 365: This promotion enables partners to

position E3 and E5 as the best option for Office 365 customers wanting to
enhance their security and compliance posture and reduce costs by displacing
third-party point solutions.

13
 • Microsoft customers purchasing a blend of Office 365, Microsoft 365 E3 and
standalones that require advanced security and compliance capabilities can save
by consolidating to E5.
 Customers using E3, Microsoft Power BI and advanced security
standalones such as Microsoft Defender for Office Plan 2 or Defender for
Endpoint Plan 2
 Customers using Office 365 E3, EMS E3, and advanced security
standalones such as Microsoft Defender for Office Plan 2, or Microsoft
Defender for Endpoint Plan 2
• Customers renewing from EA to CSP: The three-year term and promotion allows
partners to provide a consistent experience across channels and enables
customers with expiring EAs to work with a CSP partner over the long-term and
explore additional value offered by premium Microsoft 365 subscriptions. EA
customers with Microsoft 365 or Office 365 Enterprise suites with Teams will also
be able to keep their Teams entitlement if they choose to renew those
subscriptions in CSP.
• Whitespace: By providing multi-year term agreements and promotional discounts
to mitigate switching costs, partners can reach customers who might otherwise
not be willing to fully transition to the Microsoft 365 cloud.

We encourage partners to think about both customer audiences as they build plans for
communicating this promotion with new and existing customers.

How do I use this promotion?

Partners can view promotions available to their customers in the portal catalog in the
Partner Center. Promotions will automatically apply when purchasing E5 for an eligible
customer.
Partners can also access all available promotions and their pricing information in the
Global Promo Readiness Guide or by calling the get promotions API.

How can I verify if a customer qualifies for this promotion?

Partners should always rely on the verify eligibility API to understand whether a
promotion will be applied before purchasing. The API will return the minimum,
maximum, and the remaining available licenses if the seat limits aren't met. Please refer
to the verify promotion eligibility Microsoft Learn article for more details and the error
response codes.

14
I have a customer with hundreds of users and a “few seats” of E3 and/or E5—are
they eligible for this promo?

For potential exceptions, please contact your GPS PDM.

I have a customer who purchased a three-year subscription of the new E3 and/or

E5 SMC SKU between June 1 and the promotion launch on June 9, 2025. Can I
cancel, request a refund, or receive credits on behalf of the customer?

No. There will not be any exceptions or support processes for additional credits,
cancellations, or refunds. Customers can cancel their subscription during the standard
168-hour window after purchase for a pro-rated refund. After the 168-hour cancellation
period, customers cannot request a refund for their subscription.

What happens at the end of the promotion period?

Promotional pricing will stop applying after the subscription’s three-year commitment
term ends, and subscriptions will renew at the standard price point on the CSP price list
at that time. After the end of the promotional period (December 31, 2025), new
purchases of three-year subscriptions will not receive the discount.
License renewals, upgrades, and commitment term changes can be scheduled in
advance of the renewal date via the Partner Center dashboard, as long as the
subscription is active and automatic renewal is on. Partners can access the standard
price list and adjust automatic renewal in Partner Center midterm.

How does the 2,400-seat limit work? Do I have to sell all the seats at once? Is it a
limit per transaction?
The maximum is for each individual SKU promotion. You can purchase 2,400 seats at the
promotional price on Microsoft 365 E3, 2,400 seats on Microsoft 365 E5 Security, 2400
for Microsoft 365 E5 Compliance and so forth.

The promotion allows partners to sell up to 2,400 seats of the Microsoft 365 3-year SKU
at the promotional price to any given eligible customer. This can be done at once or as
the customer decides to expand their seats during the term of the subscription. Partners
will not be able to sell more than 2,400 discounted seats of an individual 3-year SKU to
the same customer.

15
How and where do I upgrade a customer with an eligible subscription to E3 or E5
on new commerce to receive this promotional discount?

Partners, on behalf of their customers, can upgrade all eligible licenses (full upgrade) or
some licenses (partial upgrade) to E5 in the Partner Center midterm. Partners can also
schedule upgrades midterm, or at time of renewal in the Partner Center. When licenses
are upgraded to a new subscription for E5, the promotional price will automatically
apply to eligible customers during the promotional period. Partners can confirm if the
promotion will apply prior to submitting the transaction while configuring the upgrade
flow.
Please note that for a customer upgrading multiple subscriptions to E5—e.g., E3 and E5
Security add-on—partners should raise a support ticket after the upgrade to cancel the
remaining redundant subscription via the new AI-assist experience.

Full upgrades will retain the subscription ID, term commitment, billing frequency, and
the original subscription will be deleted automatically.

I have a new customer that needs more than 2,400 seats. What do I do?
Partners can sell more than 2,400 seats to a new customer at any time, but the
promotional price will only be applicable to the first 2,400 seats. Partners should first
purchase 2,400 seats to receive the discount and then purchase the additional seats at
full price via a separate subscription.

What happens if my promotion-eligible customer needs to add more seats?

As with any three-year term subscription, partners can add more seats to an existing
subscription at the promotional price at any point in the subscription term, up to the
2,400-promo seat maximum.

I heard that Microsoft is planning to adjust prices to reflect new exchange rates.
How does this affect the promotion?

The new-to-Microsoft 365 E3 and E5 three-year promotion in CSP reflects a 10%

discount to the current pricing on the CSP price list. If there are pricing or FX updates
the discount will apply to these new prices.

I have customers with Microsoft 365 Business Premium subscriptions. Can I use
these promotions to consolidate these customers on E3 or E5?

16
Yes. Business Premium continues to be the hero SKU sold to customers with fewer than
300 users, which enables premium security value. For customers with 300+ users, E3 and
E5 should be considered the hero SKU as they enable foundational and advanced
security and compliance capabilities.
Customers can upgrade from monthly/annual Business subscriptions to three-year E3
and/or E5 subscriptions and qualify for the three-year promotion if they are new-to-E3
and/or E5 for each respective promotion.

I need additional guidance on how I can verify customer eligibility.

For information regarding the following questions, please see the offer matrix. The offer
matrix is updated each month as a companion spreadsheet to the price list and is
available in the Partner Center in the Pricing Section. You can find:

• The list of available offers across all SKUs.

• Prerequisites for each offer include customer eligibility criteria.
• Offers available for a particular SKU—including eligible product upgrade
pathways.
To directly verify whether a customer is eligible for the promotion, partners can see the
information in the review page in Partner Center prior to purchasing the product with
the customer tenant ID. Alternatively, partners can call the verify promotion eligibility
API. Eligibility will be enforced directly by the Partner Center web and API systems at the
time when the partner is transacting the offer via the “New Customer” check. For
questions about the maximum number of licenses available to partners, please refer to
the Global Promo Readiness Guide.

I have a customer with an annual commitment for E3 and/or E5. Will they continue
to qualify for the promotional discount when renewing that subscription?
No. Promotional discounts only apply to customers for products which they have prior
purchase history. Promotions also only apply to new subscriptions—not renewing
subscriptions.

My customer is currently purchasing both E3 and E5 on a monthly and/or annual

subscription and would like to benefit from this promotion. Can I use this
promotion?

17
No. The current promotion aims to help partners acquire new E3 and/or E5 customers,
expanding their existing customer base and providing more opportunities for partners
to deliver value-added services to customers that are willing to commit to a long-term
relationship.
A current customer on E3 with no purchase history of E5 would qualify for a E5
promotion, but that customer would not qualify for the E3 promotion.

Can eligible customers decrease their license count during the promotion period at
the promotional price?
No. As with other per-user subscriptions through the MCA, customers cannot reduce
seats at any time, nor cancel the purchase beyond the partner’s cancellation policy at
purchase.

Can eligible customers increase their license count during the promotion period at
the promotional price?
Yes. Partners can increase their customers’ license count at any point during the three-
year subscription term at the promotional price up to the 2,400 seat limit—even if the
promotional window has expired.

Can the customer cancel their promotional offer subscription at any time?

No. Customers can cancel their subscription during the standard 168-hour window after
purchase for a pro-rated refund. After the 168-hour cancellation period, customers
cannot request a refund for their subscription. Partners can turn off auto-renewal on
behalf of their customers at any point in customer subscriptions.

I have an existing customer with an existing monthly or annual commitment on

New Commerce Experience (NCE) for E3 and E5. Can they cancel it and add a new
three-year subscription for E3 and E5 using the promo?
No. The “New Customer” eligibility check will exclude any customer from receiving the
promotional discount for any product SKU that they have purchased in the past—across
NCE and legacy on either commitment term. Customers would only be eligible for
products that they have never purchased, which is why we recommend partners focus
on upselling more premium products or accelerating new-to-Microsoft 365 cloud
customers.

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Can the new-to-offer (NTO) promos be used when upgrading to Microsoft 365 E3
with Teams or Microsoft 365 E5 with Teams (EOS SKUs)?
Yes. If the customer has no previous purchase history of the EOS SKU, they will be
eligible to use the NTO promos when upgrading to Microsoft 365 E3 with Teams and/or
Microsoft 365 E5 with Teams.

Does the new customer promo mean new in CSP or new seats? What are the
enhanced “new to offer” constraints for promo eligibility that will be available
starting June 2?
For new-to-offer (NTO) promotions, customers will be eligible only if the customer has
no previous purchase history of the SKU in question across any of the Microsoft
transaction channels in both legacy and new commerce platforms. If a customer
previously owned Microsoft 365 E5 in EA, they will not be eligible for the Microsoft 365
E5 3-year 10% promo in CSP.

If a customer has a purchase history of Microsoft 365 E3 in EA, are they qualified
for the new-to-offer (NTO) 10% promo when they move to CSP?

For NTO promotions, customers will be eligible only if the customer has no previous
purchase history of the SKU in question across any of the Microsoft transaction channels
in both legacy and new commerce platforms. If the customer had a purchase history of
Microsoft 365 E3 in EA, they would not qualify for the promo. They can still buy the 3-
year Microsoft 365 E3 at full price in CSP.

Is the 10% promotion on the Microsoft 365 3-year SKUs only for the first year or
for all three years?

The promotional price is locked in for all three years. Customers who add licenses to the
subscription during the 3-year period will also receive the promotional price.

Is the 3-year 10% discount calculated at the net partner price or the standard
price?

The 3-year promotional discount applies to the net partner price that CSP partners pay
to Microsoft.

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If a Microsoft 365 E3 one-year customer decides to upgrade to Microsoft 365 E5
three-year mid-term, will this create a three-year subscription? Will the 10%
promo apply for the full three-year period?
Upgrading to a three-year term subscription (a higher term from a lower term) starts a
full three-year term. Upgrading from a Microsoft 365 E3 annual term to a Microsoft 365
E5 three-year subscription four months (or mid-term) into the Microsoft 365 E3 term will
produce an E5 subscription term that is a full three years. Mid-term upgrades do not
allow for coterminous end date setting. See Microsoft Learn for more information.

If a customer is new-to-offer for Microsoft 365 E5, they will qualify for the 10% promo
for the three-year period.

What should I do if I have additional questions about this promotion?

For additional questions partners may have about this promotion, please review the
Global Readiness Promo Guide, starting with the June 2025 edition, post-promotion
launch on June 9.

When will the E5 Security and E5 Compliance mini suite promotion be available?
The E5 Security and E5 Compliance mini suite promotion will be available worldwide on
July 1, 2025. Please review the Global Readiness Promo Guide for full details.

Improving the transition for Enterprise Agreement

customers renewing to CSP

What changes is Microsoft making as of April 1, 2025, for customers with an

Enterprise Agreement (EA) who choose to renew via the Microsoft Customer
Agreement (MCA) with a CSP partner?

Microsoft is introducing a channel transfers interface in Partner Center that will ease the
renewal process for EA customers who are moving their per-user subscriptions from the
EA sales motion to the MCA through a CSP partner. The new Partner Center user
interface will streamline the purchase experience for partners who are buying new

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subscriptions for EA customers in CSP. Specifically, this new user interface is designed to
ensure that customers with E3 and E5 with Teams and Office 365 E1, E3, and E5 with
Teams in EA can move to the CSP channel and keep their Teams entitlement. The new
user interface will:
• Surface EA per-user subscriptions that partners can renew in CSP.
• Enable continuity of service for enterprise customers who have Microsoft 365
and/or Office 365 Enterprise suites with Teams to move to CSP and keep their
Teams entitlement.

How will Microsoft support EA customers who have Microsoft 365 and Office 365
suites with Teams?

Many EA customers have Microsoft 365 and/or Office 365 Enterprise suites with Teams.
If they choose to move from EA to CSP, they want a consistent experience with their
Microsoft 365 and Office 365 services. As of April 1, 2025, Microsoft is enabling EA
customers who have Microsoft 365 and Office 365 with Teams to keep their Teams
entitlement as they move from EA to the MCA through a CSP partner. EA customers
who have a subscription of Microsoft 365 and/or Office 365 Enterprise suites with Teams
will be able to move to an annual term subscription of Microsoft 365 and Office 365
Enterprise suites with Teams in CSP, starting April 1, 2025. Partners must utilize the new
guided purchase experience in Partner Center for per-user subscriptions to retain the
customer’s Teams entitlement when continuing their services for Microsoft 365 and
Office 365 with Teams from EA to CSP.

Does this mean that CSP partners will be able to purchase new Microsoft 365
Enterprise suites with Teams for former EA customers?
CSP partners cannot purchase these subscriptions in the Partner Center catalog
experiences or APIs. These end-of-sale SKUs are also not in the monthly price lists—they
are in the end of sale price list. Since the Teams suites are end-of-sale, this new guided
purchase experience for EA customers renewing into CSP will be the only way for
existing customers who already have Microsoft 365 and/or Office 365 Enterprise suites
with Teams in their EA to renew them in CSP. The channel transfers interface allows the
CSP partner to acquire end-of-sale SKU subscriptions even though they are not
purchasable through the typical Partner Center catalog experiences.

How will EA customers be visible in Partner Center to partners?

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To begin, the partner must send a relationship request to the customer, as outlined in
the request a reseller relationship with a customer article on Microsoft Learn. The EA
customer accepts the relationship request and signs the MCA, which authorizes the
partner to make purchases on their behalf. The partner signs into Partner Center to see
the customer in their customer List, selects the customer, and can see upcoming EA
expirations and per-user subscriptions in the channel transfers interface. Any EA
customer who has accepted the reseller relationship request with a CSP partner will
appear in the new “channel transfers” tab in that CSP partner’s customer workspace in
Partner Center, regardless of whether the EA customer is in extended term status or in
90-day grace period status. For further details on how to use this new channel transfers
experience for per-user subscriptions in Partner Center, view the Microsoft Learn
documentation for moving license-based EA customers to CSP.

What are the steps a partner can follow to set up subscriptions for their EA
customer in the new channel transfers experience in Partner Center?

Assuming the customer accepted the CSP partner's relationship request, or if the
customer was created by the partner, the customer will show up in the partner's
customer list. The partner selects the customer’s name to go to that customer's context,
allowing them to purchase subscriptions and manage the customer. At the customer
context, the partner will see a left-nav element named "channel transfers." This will take
the partner to a page that shows them if that customer has EA agreements that have
recently expired or will expire in the next six months.

The partner will then select the subscription they want to renew to CSP and enter the
term, seat counts, and billing frequency. The partner then submits a request, setting a
schedule to acquire the SKU as a new CSP subscription for the customer. The customer's
EA subscription will expire, aligned to their EA expiration date. The CSP subscription will
be created when the EA subscription expires. For further details, see the Microsoft Learn
documentation for moving license-based EA customers to CSP.

Partners already have a manual way to set up new customers in Partner Center.
Why have the new Partner Center user interface improvements been created?

Today, the manual effort required to set up new customers often leads to mistakes in
the ordering process. Additionally, this existing manual path does not support Microsoft
365 and/or Office 365 customers with Teams entitlements for SKUs that are now end-of-
sale (not purchasable in the CSP catalog). The new Partner Center channel transfers
experience is intended to reduce purchase errors and streamline the setup process,

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allowing partners to view the per-user subscriptions a customer might have in EA and
acquire the same license-based SKUs for the customer in CSP. As an important note, this
channel transfers experience will be the only way EA customers with subscriptions to
end-of-sale Microsoft 365/Office 365 Enterprise suites with Teams will be able to
maintain their Teams entitlement as part of the Microsoft 365/Office 365 Enterprise
suites when they move to CSP. Once the renewing EA customer’s new CSP subscriptions
have been created, the partner can define properties for the subscription, such as term
and billing plan.

For an EA customer whose agreement is expiring, what is the window of time in

which they are eligible for renewal to CSP through the new interface in Partner
Center?

CSP partners who have a reseller relationship with an EA customer will be able to view
per-user subscriptions for an agreement that has expired in the last 90 days or will be
expiring in the next six months.

What happens if the EA customer renewing to CSP has a reseller relationship with
more than one CSP partner?

CSP partners and the customer are responsible for working together to decide which
CSP partner schedules the customer’s renewal to CSP. Microsoft and the partner support
team will not change or resolve cases where a CSP partner may have already scheduled
a renewal.
If a partner is renewing an EAS customer to CSP, can the partner use the new EA to
CSP channel transfers capability for the customer’s per user subscriptions in
Partner Center?
Yes.

Extended Term service: Guidance for CSP partners

We are providing additional clarification to guide partners through important steps to
follow to ensure their customer will not continue to be billed for their EA subscription
costs after their EA expires.

What is Extended Term service for EA customers?

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Microsoft offers Extended Term—also known as “Extended Period Term” (EPT)—service
to EA customers whose agreement has expired—to ensure that their Microsoft per-user
subscriptions remain active. This Extended Term service begins the day after the
customer’s EA expires. The customer will receive a monthly Extended Term service
invoice from Microsoft for the cost of their EA subscriptions, plus a 3% service fee. These
monthly invoices will continue until the customer signs an Online Services Extended
Term Option form (also known as the “opt out” form). Completion of this form enables
the customer to “opt out” from the Extended Term service and stops all future Extended
Term service billing. The Licensing Solution Partner (LSP) or a Microsoft Commercial
Executive working with the EA customer must explain this billing situation to the
customer, have the customer sign the Online Services Extended Term Option form, and
send it to a Microsoft Operations Service Center to be processed. When the form is
processed, the Extended Term service ends and all EPT future billing stops. The partner
or the Microsoft Commercial Executive can also assist the customer with processing a
credit request for Extended Term invoices, to refund the customer for Extended Term
charges.

What happens if the EA customer renewing to CSP is receiving monthly bills from
Microsoft for their Extended Term (EPT) subscription costs?

It's important for partners and Microsoft sellers to work proactively with customers who
are transitioning from EA to CSP to avoid a double billing scenario. This scenario will
result if a customer with an expired EA is being invoiced monthly by Microsoft for EPT
service and is simultaneously being billed by a CSP partner for their new CSP per-user
subscriptions.

What steps should partners follow to avoid a customer double billing scenario?

The proactive steps to ensure this double billing scenario doesn't happen are as follows:
1. Opt-out: The LSP/SSP partner or Microsoft Commercial Executive working with
the expiring EA customer can submit the opt-out form at any point during the EA
agreement term or within 30 days prior to EA expiration, to prevent the customer
from lapsing into Extended Term service and being billed monthly by Microsoft
for the cost of their EA subscriptions plus a 3% service fee.* CSP partners can ask
their customer to engage with their existing LSP or Microsoft representative to
initiate the opt out process.
2. 90-day grace period: With the opt-out form processed, the customer’s EA
expires and will automatically enter the 90-day grace period.
3. CSP renewal: The CSP partner who secures a reseller relationship with the
customer will see the customer’s per-user subscriptions in the new Partner Center

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 “channel transfers” tab and can schedule the customer's renewal to CSP to start
the day after the EA enrollment expires.

*As noted above in this document, the opt-out form can also be submitted after EA
expiration to stop all future EPT billing.
To learn more about Extended Term service, review this partner-facing documentation:
Online Services (OLS) lifecycle and Extended Term service.

Important note: For EA subscriptions of EOS Microsoft 365/Office 365 Enterprise suites
with Teams, if the customer’s 90-day grace period ends, the partner will lose visibility of
the customer’s EA subscriptions. Consequently, the partner must follow the existing
manual process to set up the customer’s new subscription in the Partner Center and the
customer will not be able to retain their Microsoft 365/Office 365 Enterprise suites with
Teams entitlement in this scenario.

Will the per-user subscriptions for EA customers who are in Extended Term service
appear in the “Channel transfers” tab in the Customer workspace?

Yes. An EA customer who is in Extended Term service will appear in a CSP partner’s
“channel transfers” tab in the Partner Center Customer workspace if the customer has
accepted the reseller relationship request with that partner. The partner working with
this customer on their renewal should discuss the EA transition with them and guide the
customer to a Microsoft account representative for help with cancelling the Extended
Term service.

Will the per-user subscriptions for EA customers who are in the 90-day grace
period appear in the “Channel transfers” tab in the Customer workspace?
Yes. An EA customer who is in the 90-day grace period post-EA expiration (who has
opted out of Extended Term) will appear in a CSP partner’s “channel transfers” tab in the
Partner Center Customer workspace, if the customer has accepted the reseller
relationship request with that partner.

Are Azure services supported with this functionality?

No, this new functionality is only enabled for license-based (per-user) subscriptions, not
for Azure services. If a customer has Azure services under their EA and the CSP partner
aims to transfer these EA Azure subscriptions to their CSP relationship with the

25
customer, please refer to this Learn article for high-level steps: Transfer Azure
subscriptions between subscribers and CSP partners.

What happens if a customer’s EA has not been renewed and all their subscriptions
are in the 90-day grace period on EA?

EA subscriptions that have not been renewed and are in the 90-day grace period can be
renewed to CSP. In this case, the partner renews the customer’s subscriptions to CSP
and the newly created CSP subscriptions are created within 24 hours of submitting. The
start date and term of any new subscription aligns to when the partner submits it (+24
hours), and the term is a full term. However, after the EA customer’s 90-day grace period
ends, the partner will not be able to see the customer's EA subscriptions in the new
guided purchase Partner Center user interface. At that point, the partner will need to
follow the existing manual process to set up the customer as a new customer in Partner
Center.

Important reminder: For EA subscriptions of EOS Microsoft 365/Office 365 Enterprise

suites with Teams, if the 90-day grace period expires, the partner will lose visibility of the
customer’s EA subscriptions. Consequently, the partner must then follow the existing
manual process to set up the customer’s new subscription in Partner Center, and the
customer will not be able to retain their Microsoft 365/Office 365 Enterprise suites with
Teams entitlement in this scenario.

What happens if the customer wants to upgrade their Microsoft 365 or Office 365
Enterprise suites with Teams subscription when they renew into CSP?
The guided purchase experience for EA to CSP will give CSP partners the option to
define properties for the subscription, such as term and billing plan. Once the
subscription is created in CSP, the partner can then upgrade (transition) the CSP
subscription, just as they would with any other new commerce CSP license-based
subscription. Partners can now update billing plan and subscription term for
subscriptions of Microsoft 365 or Office 365 Enterprise suites with Teams and keep the
Teams entitlement. Learn more here: manage term duration and billing frequency.

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Automating the support process for midterm
upgrades

How does the many-to-one upgrade process work today in CSP?

CSP partners must first complete an upgrade to the higher-level SKU (for example, E3 to
E5) in Partner Center or using the transition APIs. When a customer has duplicate or
redundant licenses after an upgrade, the partner submits a support ticket requesting
cancellation of the redundant licenses. This request must be completed within the
upgraded subscription term. The support ticket is then managed manually by Microsoft
Support agents. This process includes a credit or refund to the partner for the cost of
the redundant licenses in their next monthly invoice.

What improvements is Microsoft making to the many-to-one upgrade process in

CSP?

Microsoft is streamlining the cancellation and credit support experience related to the
process of executing many-to-one upgrades. We are automating the support process to
allow duplicate subscriptions resulting from many-to-one upgrades to be processed
more efficiently in Partner Center after an upgrade to a higher-level SKU. This should
greatly reduce the support ticket friction partners currently have with cancellation of
duplicate (redundant) licenses and reduce the time to execute upgrades.

What will the new support ticket experience be?

We will be adding the ability to cancel duplicate subscriptions after an upgrade to the
existing AI assistant in Partner Center for specific many-to-one upgrade paths.

What is the AI assistant?

The AI assistant provides automated guidance and help for CSP partners. It’s visible as
the sparkle icon in the upper right corner of the Partner Center page. To learn more,
review the overview of the AI assistant. Note: The AI assistant is only available in English
today.

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Are there plans to enable the AI assistant to support other languages in addition
to English?

Yes, we will have more to share about this in the coming months.

How will the AI assistant improve support processing times for many-to-one
upgrades?

The AI assistant will feature a new support prompt for the cancellation of duplicate
subscriptions after a many-to-one upgrade. Partners will be able to follow the prompt
guide to submit information the AI assistant needs to process their support ticket. The
AI assistant will then confirm the supported upgrade path and process the support
ticket. Note that partners must first complete the upgrade using the Partner Center self-
serve process. The AI assistant will not be able to recognize the upgrade if the partner
purchases the higher value SKU outside of the self-serve upgrade experience. Partners
can find additional details about the new AI assistant support experience here: What can
the AI sssistant do in the customers workspace?

Which many-to-one upgrade paths will be supported in the new AI assistant

support capability?

View this list of supported many-to-one upgrade paths. Additional upgrade paths will
also be enabled in AI assistant by May 2025.

What should a partner do if the AI assistant rejects their support ticket?

If the AI assistant rejects a support ticket request, partners can follow the existing
process to manually submit a support ticket.

What are the upgrade scenarios that require a partner to file a support ticket
manually?

These are examples of upgrade scenarios that are not currently in scope for the
automated AI assistant support process. In these cases, partners should continue to file
a support ticket manually:

• Upgrades completed outside of Partner Center or using transition APIs

• Cancellation requests submitted after six months
• Many-to-one upgrade paths not supported by the AI assistant

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Will this change improve support ticket processing time?

Yes. Because the support process has been managed manually, current support ticket
processing times vary, with partners waiting multiple weeks in some cases for resolution.
The new AI assistant support automation will streamline the support resolution process,
reducing the resolution to approximately four days or less.

How can CSP customers retain their Teams entitlements after partners upgrade
their Microsoft 365 and Office 365 suites?
To ensure they are retaining the Teams entitlements that some customers have with
their Microsoft 365 and Office 365 suites, partners must leverage the self-serve upgrade
functionality available in Partner Center or use the transition APIs. If partners purchase a
higher-level SKU separately, the customer will lose their Teams entitlement and will be
required to pay the additional cost of the Teams standalone SKU. Note that once the
customer loses this Teams entitlement, the change cannot be reversed. View the
supported Office 365 and Microsoft 365 suites with Teams upgrade paths that are
included in the list of supported many-to-one upgrade paths.

Will the AI assistant be available in the transition APIs?

No. We are making this automation improvement to the existing AI assistant that
partners use in Partner Center.

Will there be any updates to the CSP cancellation policy for upgrades or to the
refund process as a result of this change?
No, we are not making changes to the cancellation or refund policies. Partners can find
the documentation for cancellations and refunds here: new commerce experience
cancellation policy

Net Paid Seat Adds reporting

What is Net Paid Seat Adds (NPSA)?

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Net Paid Seat Adds (NPSA) is the net number of users added to a partner’s install base
of Microsoft 365 cloud services (users added minus users lost). It is measured as our
current period end of period (EOP) seats less our prior period EOP seats for a select
group of cloud products in Modern Work.

What is the importance of NPSA for CSP revenue growth?

NPSA is critical for CSP revenue growth, as it helps partners measure and assess their
install base of Microsoft 365 customers and users and its performance. With that,
partners can make informed decisions that drive their overall CSP revenue growth.

How is NPSA measured?

NPSA is measured by comparing the current period EOP seats to the prior period EOP
seats for specific cloud products.

How will NPSA reporting be used by partners?

NPSA reporting will provide partners the ability to view a list of their customers and the
NPSA associated with these customers over time, assess NPSA at different points in
time, and highlight the NPSA breakdown between “new,” “net expansion,” and “churn.”

What is the importance of partner-facing NPSA reporting?

Partner-facing NPSA reporting is important for partners to understand their

performance, make investments to improve NPSA, and have performance management
discussions around NPSA.

What are the critical views partners need in NPSA reporting?

Partners need views such as a list of their customers (tenants) and the NPSA associated
with these customers over a period of time, the ability to select different months to
assess NPSA at different points in time, and a simple NPSA bridge and table
highlighting the NPSA breakdown between “new,” “net expansion,” and “churn.”

What is the definition of a new customer in NPSA reporting?

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A new customer is defined as a first-time tenant counted as a "cloud" tenant where
seats are >0. It also includes recaptured customers who were existing tenants, dropped
from the EOP tenant measure, and returned.

Here are two scenarios when a customer is considered new:

1. First time customer has >0 seats
2. A customer not having any seats for two months and then having seats in third
month. For example, a customer has >0 seats in January, has 0 seats in February
and March, and has >0 seats in April. In this case, this customer is considered as
new customer in month of April.

What is the definition of expansion in NPSA reporting?

Expansion refers to existing customers adding or losing paid seats to the partner’s
existing customer base.

What are the scenarios for expansion in NPSA reporting?

Scenarios for expansion include:

• Customer partially dropping seats.
• Existing customers expanding within the channel.
• Returning customers adding to the channel for the first time and no change from
the prior period.

How is full churn defined in NPSA reporting?

Churn refers to customers fully dropping seats, meaning they were existing tenants and
dropped from the EOP tenant measure.

How is customer size defined in NPSA reporting?

Customer size is defined as Very Small Businesses (less than 25 seats), Mid-Market (25-
300 seats), Larger (300-2,400 seats), and Largest (>2,400 seats).

What is the definition of Monthly Active Users (MAU)?

Monthly Active Users (MAU) refers to the number of unique users who engage with a
product or service within a month.

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