Microsoft merges M365 and Dynamics 365 partner priorities with AI Business Solutions in FY26

Microsoft’s partner go-to-market approach in FY26 will focus on three broad solution areas for cloud, security, and core solutions like Microsoft 365 and Dynamics 365, with AI priorities across them all.

Dynamics 365 and Microsoft 365 now fall under the unified AI Business Solutions area, the company revealed at today’s MCAPS Start for Partners digital event. The company’s other solution areas in FY26 are Cloud & AI Platform and Security.

According to Microsoft chief commercial officer Judson Althoff, who is on a two-month sabbatical and spoke in a pre-recorded portion of today’s event, Microsoft’s five sales priorities for partners in FY26, aligned with the solution areas. These priorities are: 

• Copilots on every device and across every role
• M365 and D365 core execution
• Frontier AI solutions
• Migrations and modernization
• Securing the cyber foundation

These priorities are largely unchanged from FY25, Althoff said, though they are organized differently. He added that Microsoft will be covering M65 and Dynamics 365 more intensely under the new approach. Microsoft still sees a vast amount of cloud migration opportunity, with plans that incentivize both partners and their own sellers to win those deals. 

Althoff also noted that the Cloud Solution Provider program remains Microsoft’s “lead-with” motion, with a focus on reducing conflict between EA and CSP offers this year. 

Jonathan Hunt, CVP for sales in AI Business Solutions (formerly CVP for Sales, Business Applications), told the audience he thinks they will be impressed with Microsoft’s FY25 Q4 results, which the company will reports on July 30. He called attention to Microsoft’s Frontier Firm concept (as did many other speakers), which characterizes companies that embrace agents as a core element of their IT strategy. 

In the AI Business Solutions unit, Microsoft aims to evaluate customers across an AI spectrum that starts with lower value M365 Copilot and Copilot Chat, progressing to the deployment of custom agents via Copilot Studio, and finally to running agents along with Dynamics 365 applications.