The FY27 incentive changes pay you for growth. Your renewal book needs a second line.
From 1 July 2026 the flat run-rate rebate on Microsoft 365 is gone for indirect resellers, and from October 2026 a 5% margin cut lands on legacy SKUs such as E1, E3, Exchange Online and Microsoft 365 Apps. Keep the Microsoft practice. Add XgenPlus as the email line for the customers who want rupee pricing, Indian hosting or on-premise, and earn 15 to 20% on every order and every renewal, for as long as they stay.
A Microsoft CSP indirect reseller can join the XgenPlus Partner Program without leaving the Microsoft programme: the CSP agreement is not exclusive, there is nothing to pay, no seat minimum and no target, and the same commission slab (15% of list price on 1 to 3 active domains, 17% on 4 to 6, 20% on 7 or more) applies to the first order, added users and every renewal. You invoice in your own name or refer the customer to buy direct; the commission follows the domain either way. Approval takes one business day.
Three FY27 changes, and what they do to a small CSP book
Run-rate rebate retired
In FY26 an indirect reseller earned a flat 3.75% Core incentive on Microsoft 365 subscriptions, paid on the whole book whether it grew or not. In FY27 that Core incentive is not offered to indirect resellers. The money moved into growth accelerators that pay on new-to-offer wins, seat expansion and adoption. A stable book of renewals earns less than it did.
5% cut on legacy SKUs from October 2026
A partner-margin reduction of five points applies to a list of legacy and standalone products, which reporting names as Office 365 E1 and E3, Exchange Online plans and Microsoft 365 Apps. Those are the SKUs most Indian SMB tenants sit on. Margin on a 25-seat Exchange Online Plan 1 customer is now a few hundred rupees a month.
Premium SKUs are where the incentives went
Copilot, E5 and Business Premium carry the accelerators. The customers who will pay for those are worth chasing. The ones who will not, the trading companies, schools, clinics and factories that only ever wanted email on their domain, are now the least profitable seats in your tenant list. They are the customers XgenPlus is built for.
Dates and percentages as announced by Microsoft for FY27 (1 July 2026 to 30 June 2027) and reported by CSP distributors in August and September 2026. Check the FY27 incentive guide in Partner Center for the SKU list that applies to you.
What the same 25-user customer pays you, side by side
An ordinary Indian SMB customer: 25 users who need mail, calendar, contacts and Outlook on the desktop. XgenPlus figures use the published list price of XGEN Premium (10 GB, ₹50 per user per month billed yearly) and the published slab.
On XgenPlus, at the 20% slab
- Customer pays ₹15,000 a year before GST
- You earn ₹3,000 in year one, and ₹3,000 again at every renewal
- Ten such customers are ₹30,000 a year; fifty are ₹1,50,000 a year, recurring
- Migration, setup and support hours go on your own invoice on top
On a legacy Microsoft SKU after October 2026
- Customer pays Microsoft list price through your distributor
- Your margin is the distributor discount, minus five points on the legacy list
- No Core incentive on the renewal; accelerators only if the seat count grows or the SKU is upgraded
- You carry the billing and the first-line support either way
The absolute rupees per customer on Microsoft can still be higher, because the customer pays more. The question is which customers. We wrote the full three-year comparison for six programmes on the reseller economics page and the rupee tables in is business email reselling profitable in India.
Which of your tenants belong on XgenPlus
Email-only tenants
Customers on Exchange Online Plan 1 or Business Basic who use Outlook and nothing else. XgenPlus gives them the same Outlook over IMAP and SMTP, ActiveSync on phones, calendars and contacts, at a rupee price billed yearly, with 10 GB to 30 GB per mailbox.
Regulated and government accounts
NBFCs, cooperative banks, PSUs and their vendors that must keep mail in India or on their own hardware. XgenPlus runs hosted in Indian data centres, in a private cloud, or on-premise including air-gapped. Microsoft cannot offer the last two. The tender desk co-bids on GeM with manufacturer authorisation.
EWS-dependent customers
Exchange Web Services is switched off for Microsoft 365 on 1 October 2026. Customers whose CRM, ERP or scanner integrations depend on it face a rewrite or a move. Our EWS retirement runbook and the Exchange migration service are already in the Partner Kit as a battlecard and a playbook.
The programme, in one list
- 15%, 17% or 20% of list price before GST on every order and renewal, recomputed on each paid order and only ever moving up
- Invoice in your own name, or refer the customer with your link; same commission either way
- A partner panel to add customers, register domains, set DNS and watch commission accrue per domain
- Claim from ₹5,000 accrued, paid by bank transfer against a proforma, TDS as the law requires
- Partner Kit: welcome letter, sales deck, competitive battlecards including Microsoft 365, a pricing strategy built from live prices and your slab, a migration playbook
- Free certification test and an Authorized Partner badge with a public verification page
- An internal-use licence at half price for your own organisation
- Migration from Microsoft 365 done by the XgenPlus team, included on hosted plans from Premium upwards
Full terms, the application form and the FAQ are on the partner program page →
What CSP partners ask us
Can a Microsoft CSP partner also be an XgenPlus partner?
Yes. The Microsoft Cloud Solution Provider agreement does not stop you selling other email services, and the XgenPlus programme has no exclusivity clause either. Most of our newer partners sell Microsoft 365 or Google Workspace to some customers and XgenPlus to others.
What exactly changed in Microsoft CSP incentives for FY27?
For FY27, 1 July 2026 to 30 June 2027, Microsoft retired the flat run-rate Core incentive on Modern Work and Dynamics 365 for indirect resellers (3.75% on Microsoft 365 in FY26) in favour of growth accelerators paid on new wins, seat expansion and adoption, and announced a 5% partner-margin reduction on a list of legacy and standalone SKUs from October 2026. Check the FY27 incentive guide in Partner Center for the list that applies to your region.
Does my customer keep Outlook if they move to XgenPlus?
Yes. Outlook connects over IMAP and SMTP with calendars and contacts syncing; phones connect over ActiveSync. Addresses and domains stay the same. Migration off a 365 tenant is done by the XgenPlus team in batches while Outlook keeps working, with cut-over on a date the customer picks.
Who invoices the customer?
Either you, in your own name at list price, or XgenPlus with the customer referred by you. The commission is the same and it follows the domain, so a customer who later renews directly still pays you.
Is there a partner discount instead of commission?
No. Customers pay the published list price and you earn the slab on it. There is no wholesale tier, no stock to buy and no receivable to carry if the customer buys direct. Your own services are priced by you and invoiced by you.
Apply now, or ask for a call first
The application itself takes about ten minutes on the partner program page and is reviewed within one business day. If you would rather talk first, leave your details here.
Selling Google Workspace as well? There is a page for that too: for Google Workspace resellers →
