CSP software pricing update effective October 1, 2026
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A 5% cost of capital uplift applies to annual-term CSP software subscriptions billed monthly.
- Impacted audience
- All CSP partners transacting annual-term software subscriptions with monthly billing plans.
Correction
An earlier communication about this pricing update included an incorrect effective date. The correct effective date is October 1, 2026. Disregard the previously communicated date and refer to the updated guidance in this article. We apologize for any confusion.
Updated guidance
Starting October 1, 2026, Microsoft applies a 5% cost of capital uplift for Cloud Solution Provider (CSP) software subscriptions (such as SQL Server, Windows Server, Client Access Licenses, and System Center) with annual-term commitments billed monthly.
This update aligns pricing treatment across sales channels while preserving monthly billing flexibility for customers. You can continue offering customers billing that aligns with their cash flow and purchasing preferences. There's no change to annual billing or month-to-month subscriptions.
For existing annual-term CSP software subscriptions billed monthly, the 5% uplift takes effect at renewal on or after October 1, 2026.
No system updates required
No system updates or Partner Center changes are required for this change. You can continue to support customers through existing operational, sales, and renewal processes.
Be sure to communicate this update in advance to any customers with subscription renewals on or after October 1, 2026.
Next steps
Review the FAQ for details on which subscriptions are impacted and how the uplift is applied.