A session led by Eric Fink and Erik Opsahl at the Biz Apps Partner Executive Summit, “Understanding Microsoft FY26 Segmentation, Organization & Roles,” outlined major changes to Microsoft’s FY26 structure, doubling down on SME&C customers as key growth enablers.
“There’s never been a better time to be in the SME&C business,” said Opsahl. SMEs make up over 50% of global employment, and Microsoft sees this segment as a key group in its growth strategy. The company is investing in people, programs, and partner alignment to scale faster and more efficiently.
A major shift in FY26 is the combining of Business Applications and Modern Work under one umbrella to create AI Business Solutions. Azure, data, and security investments were also realigned to streamline execution. “We’ve restructured to scale,” said Opsahl, explaining changes in account teams, technical resources, and market activation roles.
Further, Microsoft is honing in on its CSP-first strategy, with over 40% of SME revenue now transacted through Cloud Solution Providers. “CSP is our hero motion,” said Fink. “If you’re not selling on CSP, you’re missing where the power and momentum are.”
FY26 also brings more focus on partner specializations. After FY25’s push for solution designations, FY26 is about stronger differentiation. “Specialization will be critical in how we work with partners,” said Fink. “Especially in areas like Business Central, Sales, and Supply Chain.”
Microsoft’s new Partner Solution Specialists (PSS) will play a key role in co-selling and removing blockers. “We don’t have a field sales team for SME,” Fink reminded the audience. “You are our field sellers.”
Other changes include a new sales unit structure, a stronger focus on pipeline execution, and the expansion programs like deployment vouchers and MCI incentives. AI adoption will also play a role, with internal Microsoft agents analyzing deals and partner performance.
“This is the first time in my Microsoft career that I’ve seen consumption from Copilot Studio agents show up in my numbers,” Fink added. “It’s real, and it’s happening fast.”
The message from both speakers was strong. FY26 is about clarity, consistency, and aligning with the partner community to drive scale and impact.
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