Azure Consumed Tokens: How ACR, MBS and Soon a AI Token Based Framework Will Shape FY26 Partner Incentives

The landscape of cloud sales incentives is expected to undergoing another fundamental transformation in FY26. As we approach Microsoft’s FY26, the company’s strategic pivot toward artificial intelligence is reshaping not just their product portfolio, but the entire framework of how they incentivise their sales teams and partner ecosystem. We at Stactize expect the introduction of a AI consumption based incentive for sellers and partners alike, perhaps Azure Consumed Tokens (ACT) alongside established ACR and MBS metrics. This would represent more than an incremental change, it signals a new era of AI consumption-based partnerships in the AI economy.

The Foundation: Understanding Microsoft’s Incentive Evolution

Microsoft’s approach to sales incentives has always been a direct reflection of their strategic priorities. The company’s ability to align internal teams and external partners through carefully crafted incentive structures has been instrumental in their cloud dominance. To understand where they’re heading, we need to examine where they’ve been.

ACR (Azure Consumed Revenue): Building the Cloud Foundation

Azure Consumed Revenue emerged as Microsoft’s primary partner incentive metric during the height of cloud adoption. The concept was elegantly simple yet powerfully effective: reward partners based on the Azure consumption they drive through their customer relationships.

The ACR framework typically offered partners:

• Growth-based rewards ranging from 10-15% of quarter-over-quarter growth
• Tiered structures with caps (often $100,000 per half-year periods)
• Additional accelerators for specific workload migrations
• Strategic workload bonuses for high-value scenarios like SAP and Oracle migrations

What made ACR particularly effective was its alignment with Microsoft’s core objective during the 2016-2020 period: rapid cloud adoption and workload migration. Partners were incentivised to not just sell Azure, but to ensure customers actually consumed the services they purchased. creating sustainable, usage-based relationships rather than one-time licensing deals.

MBS (Marketplace Billed Sales): Expanding the Digital Ecosystem

As Microsoft’s cloud platform matured, the company recognised that their success wasn’t just about raw compute consumption—it was about building a thriving digital ecosystem. The introduction of Marketplace Billed Sales (MBS) as a key incentive metric reflected this strategic shift.

MBS incentives typically structured around:

• Cumulative fiscal year milestone achievements
• Publisher-level rebates (example: $20,000 at $100K threshold, additional $50,000 at $4M threshold)
• ISV-focused programs encouraging third-party solution development
• Ecosystem growth rewards for partners who drove marketplace adoption
• The MBS framework was particularly strategic because it created a virtuous cycle: partners were incentivised to drive customers toward marketplace solutions, which increased the overall value and stickiness of the Microsoft ecosystem, which in turn drove deeper Azure consumption.

The AI Inflection Point: Why Traditional Metrics Fall Short

The emergence of artificial intelligence as the primary technology battleground has exposed limitations in traditional revenue-based incentive structures. Consider the economics of AI workloads:

• Consumption Variability: AI workloads exhibit extreme variability in resource consumption, just like many of the cloud based PaaS services. A customer might spend $10,000 on model training one month and $100,000 the next, depending on project phases and data availability.
• Value Disconnect: Traditional revenue metrics don’t capture the strategic value of AI adoption. A customer generating $50,000 in AI token consumption might represent far more strategic value than one generating $100,000 in traditional compute revenue.
• Adoption Complexity: AI workload adoption requires specialised expertise, solution design, and ongoing optimisation—activities that aren’t adequately rewarded under simple revenue-based structures.
• Competitive Differentiation: In an era where AI capabilities determine competitive advantage, Microsoft needs incentive structures that drive deep, sustained AI adoption rather than superficial usage.

Introducing ACT: Azure Consumed Tokens as the Third Pillar

While Azure Consumed Tokens (ACT) hasn’t been officially announced as a formal Microsoft program, the concept represents a logical and necessary evolution of their incentive strategy. The framework would likely focus on:

Token-Based Consumption Tracking

Unlike traditional compute resources, AI services are increasingly measured in tokens, discrete units of processing that correspond to specific AI operations. A token-based incentive structure would:

• Provide granular visibility into actual AI service utilisation
• Enable precise tracking of different AI workload types (language models, computer vision, machine learning training, etc.)
• Allow for differential weighting based on strategic AI services
• Support predictive modeling of customer AI adoption trajectories

Copilot Integration Rewards

Microsoft’s massive investment in Copilot across their entire product stack—from M365 Copilot to GitHub Copilot to Azure AI services—suggests that Copilot adoption will be a primary focus of FY26 incentives:

• Multi-Service Deployment Bonuses: Partners driving Copilot adoption across multiple Microsoft surfaces (M365, Copilot, Azure) would receive enhanced rewards.
• Consumption Depth Metrics: Rather than just measuring initial adoption, ACT would reward sustained, deep utilisation of Copilot capabilities.
• Specialisation Requirements: Similar to how Microsoft ties certain incentives to specialised competencies, ACT programs would likely require demonstrated Copilot expertise and customer success capabilities.

Strategic Workload Accelerators

Historical patterns suggest Microsoft will create enhanced incentive multipliers for specific AI workloads:

• Enterprise AI Deployments: Higher token rewards for customers implementing AI at scale
• Industry-Specific AI Solutions: Accelerated incentives for AI implementations in key verticals (healthcare, financial services, manufacturing)
• AI Modernisation Projects: Enhanced rewards for customers migrating existing AI workloads to Microsoft’s platform

The Strategic Implications for Partners and Sellers

The introduction of ACT alongside ACR and MBS would create a three-dimensional incentive matrix with notable implications:

Enhanced Qualification Standards

Microsoft has already signaled more stringent partner requirements for FY26, including $1 million minimum TTM revenue thresholds. The addition of ACT would likely introduce:

• AI Competency Requirements: Demonstrated expertise in specific AI technologies and Copilot implementations
• Customer Success Metrics: Proven ability to drive sustained AI adoption, not just initial deployment
• Technical Certification Standards: Enhanced requirements for AI-focused technical certifications

Predictive Incentive Modeling

Token-based metrics enable more sophisticated incentive structures:

• Consumption Trajectory Rewards: Partners demonstrating ability to grow customer AI consumption over time
• Efficiency Bonuses: Rewards for partners who help customers achieve better AI ROI through optimised implementations
• Innovation Incentives: Enhanced rewards for partners driving adoption of newest AI capabilities

Market Positioning Advantages

Partners who establish AI and Copilot expertise ahead of formal ACT program launches will be positioned to:

• Capture higher-value customer opportunities
• Access enhanced support and resources from Microsoft
• Differentiate from competitors still focused on traditional workloads
• Build sustainable competitive advantages in the AI economy

Preparing for the ACT Era: Strategic Recommendations for Partners

Organisations looking to capitalise on Microsoft’s evolving incentive structure should consider the following.

Immediate Actions

• Copilot Expertise Development: Invest in training and certification programs focused on Copilot implementation and optimisation across Microsoft’s product stack.
• AI Customer Success Capabilities: Develop specialised teams focused on driving sustained AI adoption rather than just initial deployments.
• Token Consumption Analytics: Implement tools and processes to track and optimise customer AI token consumption patterns.

Medium-Term Strategic Positioning

• Vertical AI Specialisation: Develop deep expertise in AI applications for specific industries where Microsoft is investing heavily.
• Multi-Product AI Integration: Build capabilities to implement AI solutions that span Microsoft’s entire ecosystem (Azure, M365, Power Platform, Dynamics).
• Consumption Optimisation Services: For FinOps providers there is an opportunity to create service offerings focused on helping customers maximise AI ROI through optimised token utilisation.

Long-Term Competitive Differentiation

• AI Innovation Partnerships: Establish relationships with AI startups and technology partners to create unique solution offerings.
• Industry Thought Leadership: Build reputation as AI transformation experts through content creation, speaking engagements, and customer success stories.
• Predictive Customer Success: Develop capabilities to predict and proactively address customer AI adoption challenges.

The Broader Industry Context

Microsoft’s evolution toward consumption-based AI incentives reflects broader industry trends:

The Shift to Value-Based Partnerships

Traditional transactional relationships are giving way to partnerships focused on customer outcomes and sustained value creation. Token-based incentives align partner success with actual customer AI adoption success.

Competitive Differentiation Through AI

As AI becomes commoditised at the infrastructure level, competitive advantage increasingly comes from implementation expertise, optimization capabilities, and outcome achievement—all areas that ACT-style incentives would reward.

The Rise of Consumption Economics

Across the technology industry, companies are moving toward consumption-based models that align revenue with actual value delivery. Microsoft’s potential ACT framework represents the application of this principle to AI workloads.

Looking Ahead: The FY26 Transformation

As Microsoft approaches FY26, the convergence of several factors makes the introduction of AI-focused incentives almost inevitable:

• Massive AI Infrastructure Investment: Microsoft’s billions in AI infrastructure require partner ecosystem support to achieve ROI.
• Competitive Pressure: Amazon, Google, and others are aggressively pursuing AI workloads, requiring Microsoft to mobilise their partner ecosystem effectively.
• Customer Demand: Enterprise customers are increasingly demanding AI expertise from their technology partners.
• Technology Maturity: AI technologies have reached sufficient maturity to support consumption-based incentive structures.

Conclusion: Preparing for the Next Chapter

The potential introduction of Azure Consumed Tokens as a key token based incentive metric represents more than just another program, it would signal Microsoft’s recognition that the AI economy requires fundamentally different partnership models. Organisations that begin building AI and Copilot expertise today will be best positioned to capitalise on enhanced incentive opportunities as they emerge.

The pattern is clear: Microsoft rewards partners who align with their strategic priorities and help drive customer success in emerging technologies. As AI becomes the primary battleground for competitive advantage, partners who can demonstrate measurable success in driving AI adoption and consumption will find themselves at the center of Microsoft’s most valuable incentive programs.

The question isn’t whether Microsoft will introduce AI-focused incentives, it’s whether your organisation will be ready to capture the opportunity when they do.