Microsoft Partner License Optimization Report
Date: 2026-02-28 | Author: Lucas Shin, Security Director | Version: v1.1 (Draft)
Entities: Cybercraft (NZ) Ltd Β· Techtype Ltd Β· HVT Pty Ltd | Currency: USD (United States Dollar)
Executive Summary β This report analyzes license optimization across four scenarios, reflecting both Partner Launch Benefits and the security-mandated Entra ID P1 add-on for all Business Basic users (CA Default Block enforcement). Under the recommended Option D (Partner Launch + P1 compliant), annual total is $1,899 β saving $2,625 (58%) vs future-compliant standard pricing ($4,524). Without P1, Option C yields $1,467/year but creates a security policy violation (SPO/ODB direct access unblocked for Basic users).
1. Partner Success Benefits β Three-Tier Plans and Included Licenses (2026)
Three primary packages are available depending on each entity's size and infrastructure requirements.
| Benefit Package | Partner Launch | Partner Success Core | Partner Success Expanded |
|---|---|---|---|
| Annual Subscription | $345 | $895 | $3,995 |
| M365 Business Premium | 5 seats | 15 seats | 35 seats |
| Azure Credits (Annual) | $700 | $2,400 | $4,000 |
| Windows 11 Pro | Not included | 10 licenses | 25 licenses |
| Windows Server Standard | Not included | 10 licenses (typically 8β16 cores) | 20+ licenses |
| SQL Server Standard | Not included | 10 licenses | 20+ licenses |
| Visual Studio Pro | Not included | 1 license | 5+ licenses |
| Recommended For | β€5 users, cloud-first | Infrastructure licensing, β€15 users | Mid-sized org, 30+ users |
Strategic Note: Unless valid Windows Server licenses are strictly required (evaluation mode or Linux remains viable), the Partner Launch package at $345/year applied individually to each entity is significantly more cost-effective than the Core package at $895/year.
2. Standard M365 Unit Pricing (Reference)
- M365 Business Premium (BP): $22/mo β $264/year
- M365 Business Basic (BB): $6/mo β $72/year
- Entra ID P1 Add-on: $6/mo β $72/year
- BB + P1 (Policy-Compliant): $12/mo β $144/year β Required for CA Default Block (Domain Context Β§2.7)
- Azure Event Hub: $25/mo β $300/year
3. Current License Status by Entity
Data Source: [Master Source of Truth] Cybercraft Group ν΅ν© λͺ μΈμ Β§2 β Integrated Personnel Licenses and Equipment Inventory
Information Access Level Mapping β Premium (BP) = Level 1 Full Access (SPO/ODB direct). Basic + P1 (BB+P1) = Level 2 Channel-Scoped (Teams UI only). See Context β Cybercraft ISMS Β§3.1 for policy-first licensing architecture.
Security Requirement (2026-02-28): All BB users require Entra ID P1 to enforce CA Default Block. BB without P1 = uncontrolled SPO/ODB access = security policy violation. Options A/C (Current) vs B/D (Future-Compliant) below quantify this impact.
Cybercraft (NZ) Ltd β 5 Total Seats (Premium Γ 5)
| Name | License Type | Role | Notes |
|---|---|---|---|
| Lucas Shin | Premium (Home) | Security Operations Lead | |
| Richard Williams | Premium (Home) | CISO | |
| Farah Herbert | Premium (Home) | CEO | |
| Jeff Herbert | Premium (Resource) | Group Chairman | |
| Paul Marsden | Premium (Home) | Shareholder | Inactive (account locked) |
- Azure Usage: β (Primary entity β Event Hub and other services in use)
- Paul Marsden is currently inactive; included in the 5-seat count for licensing allocation purposes.
Techtype Ltd β 10 Total Seats (Premium Γ 3 + Basic Γ 7)
| Name | License Type | Role | Notes |
|---|---|---|---|
| Gage Keenan | Premium (Home) | Development Manager | |
| Antonio Rodrigues | Premium (Home) | Web Design | |
| Lucas Salviano | Premium (Home) | External Accounting Contractor | |
| Farah Herbert | Basic (Resource) | Cybercraft CEO | |
| Basic Staff Γ 6 | Basic (Home) | General Admin & Operations Support | Individual registration excluded |
HVT Pty Ltd β 6 Total Seats (Premium Γ 2 + Basic Γ 4)
| Name | License Type | Role | Notes |
|---|---|---|---|
| Jeff Herbert | Premium (Home) | HVT & Techtype CEO | |
| Farah Herbert | Premium (Resource) | Sales and Accounting | |
| Lucas Shin | Basic (Resource) | Security Operations Lead | |
| Richard Williams | Basic (Resource) | CISO | |
| Gage Keenan | Basic (Resource) | Development Manager | |
| Lucas Salviano | Basic (Resource) | External Accounting Contractor |
4. Four-Option Scenario Analysis by Entity
Four scenarios per entity:
- Option A β Standard Purchase, Current (BB without P1) β οΈ Non-compliant
- Option B β Standard Purchase, Future-Compliant (BB + P1)
- Option C β Partner Launch, Current (BB without P1) β οΈ Non-compliant
- Option D β Partner Launch, Future-Compliant (BB + P1) β Recommended
Cybercraft (NZ) Ltd β Level 1 Γ 5 + Azure
All users are Level 1 (Full Access / Premium). No Basic users β P1 requirement has no cost impact.
| Option | Composition | Annual Cost | P1 Compliant |
|---|---|---|---|
| A (Standard) | 5 BP ($1,320) + Azure ($300) | $1,620 | β N/A |
| B (Standard+P1) | Same (no BB users) | $1,620 | β N/A |
| C (Launch) | 1Γ Launch ($345, covers 5 BP + $700 Azure credit) | $345 | β N/A |
| D (Launch+P1) β | Same (no BB users) | $345 | β N/A |
1 seat remains available under the Launch package for future headcount expansion. Paul Marsden's inactive account included in 5-seat count.
Techtype Ltd β Level 1 Γ 3 + Level 2 Γ 7 = 10 Seats
Launch provides 5 BP: 3 for Level 1 users + 2 upgrade Level 2 users to Premium. Remaining 5 require BB (or BB+P1).
| Option | Composition | Annual Cost | P1 Compliant |
|---|---|---|---|
| A (Standard) β οΈ | 3 BP ($792) + 7 BB ($504) | $1,296 | β |
| B (Standard+P1) | 3 BP ($792) + 7 BB+P1 ($1,008) | $1,800 | β |
| C (Launch) β οΈ | Launch ($345) + 5 BB ($360) | $705 | β |
| D (Launch+P1) β | Launch ($345) + 5 BB+P1 ($720) | $1,065 | β |
P1 compliance adds $504/year (7 Γ $72) to standard, $360/year (5 Γ $72) to Launch. Launch's 2 BP upgrades eliminate P1 cost for 2 users.
HVT Pty Ltd β Level 1 Γ 2 + Level 2 Γ 4 = 6 Seats
Launch provides 5 BP: 2 for Level 1 + 3 upgrade Level 2 users. Only 1 remaining needs BB (or BB+P1).
| Option | Composition | Annual Cost | P1 Compliant |
|---|---|---|---|
| A (Standard) β οΈ | 2 BP ($528) + 4 BB ($288) | $816 | β |
| B (Standard+P1) | 2 BP ($528) + 4 BB+P1 ($576) | $1,104 | β |
| C (Launch) β οΈ | Launch ($345) + 1 BB ($72) | $417 | β |
| D (Launch+P1) β | Launch ($345) + 1 BB+P1 ($144) | $489 | β |
Launch's 3 BP upgrades eliminate P1 cost for 3 of 4 Basic users β only 1 BB+P1 purchase needed.
5. Consolidated Comparison (Annual, USD)
| Entity | Seats | A (Standard) β οΈ | B (Std+P1) | C (Launch) β οΈ | D (Launch+P1) β |
|---|---|---|---|---|---|
| Cybercraft | 5 | $1,620 | $1,620 | $345 | $345 |
| Techtype | 10 | $1,296 | $1,800 | $705 | $1,065 |
| HVT | 6 | $816 | $1,104 | $417 | $489 |
| Total (21 seats) | $3,732 | $4,524 | $1,467 | $1,899 |
Key Findings:
- A β B (P1 compliance cost): +$792/year (+21%) β the cost of enforcing CA Default Block on all 11 Basic users across the group
- A β D (Launch + P1): β$1,833/year (49% savings) β Partner Launch absorbs majority of P1 impact
- B β D (Launch benefit on compliant baseline): β$2,625/year (58% savings)
- C β D (P1 delta on Launch): +$432/year β only 6 BB users need P1 (Launch upgrades 5 BBβBP)
Options A and C are non-compliant with the security architecture requirement (Domain Context Β§2.7, Β§3.1). BB users without P1 can bypass Teams channel-scoped access and directly reach SharePoint/OneDrive. Only Options B and D meet the Information Access Level enforcement standard.
- Server License Control: Windows Server costs (a +$550 increase upon switching to Partner Success Core) are avoided by maintaining evaluation mode, fully preventing additional expenditure.
6. Recommendations and Implementation Conditions
- Recommended Option: D (Partner Launch + P1 Compliant) β Annual total: $1,899 β saves $2,625 (58%) vs compliant standard (Option B). All Basic users have CA Default Block enforced via Entra ID P1. Partner Launch eliminates P1 cost for 5 Basic users (upgraded to BP).
- Individual Partner Launch Registration: Prepare the certificate of incorporation (in English) for each entity and register individually in the Microsoft Partner Center.
- Recommended Rollout Priority:
- 1st β Cybercraft: Largest savings ($1,275) + Azure credits offset infrastructure costs.
- 2nd β Techtype: Largest headcount (10 seats); early adoption maximises cumulative savings.
- 3rd β HVT: Resource-tenant configuration minimises operational impact; safe to transition last.
- P1 Deployment: Assign Entra ID P1 to all remaining BB users immediately after Launch activation. Configure CA Default Block policy per Domain Context Β§3.1 architecture.
- Inactive Account Remediation: Confirm the disposition of Paul Marsden's locked account in the Cybercraft tenant to avoid unnecessary license allocation.
- Partner Success Core Upgrade Path: Maintain a staged strategy β upgrade only the relevant entity to Core ($895) at the point when Windows Server licensing becomes a genuine requirement.
- Windows BYOD Native App Restriction: Native desktop apps (Teams, Outlook, Office) are not permitted on Windows BYOD under current BP licensing β Purview auto-labeling not available. Edge-only access is an architectural requirement, not a policy choice. (Domain Context Β§3.8, CISO Decision Brief Β§4)