Microsoft Defender Threat Intelligence Retires August 1: CSP Credit-Memo Readiness
Microsoft Defender Threat Intelligence (MDTI) reaches end of life on August 1, 2026. For CSP operators, the product retirement is also a billing-control event: Microsoft says it will issue a credit memo for eligible remaining subscription term, and the partner must pass that credit through to the customer.
What changed
Microsoft's 23 July 2026 Partner Center announcement confirms that the standalone MDTI SKU is retiring on August 1, 2026. MDTI capabilities are available at no extra cost through the Microsoft Defender portal for customers with Microsoft Defender or Microsoft Sentinel. Microsoft says customers do not need to take migration action because the capabilities are already available to them.
The commercial impact is specific to CSP: active MDTI subscriptions end on the retirement date. Microsoft will issue a credit memo to the partner account for any remaining subscription term after August 1. CSP providers, distributors, and resellers must make sure that credit is correctly reflected in downstream customer billing.
Why CSP partners should care
- Credit ownership is operational: the Microsoft credit memo lands at the partner account, but the customer outcome remains the CSP partner's responsibility.
- Subscription and invoice state can diverge: a terminated entitlement, credit memo, customer invoice, tax treatment, and reseller margin record need to agree.
- It is a deadline, not a migration project: customers should be briefed on the retirement and the included Defender/Sentinel access without creating an unnecessary replacement order.
- Exceptions need evidence: partners should preserve the affected subscription, term, credit memo, customer invoice, and pass-through record for audit and support handling.
Operational checklist
- Identify exposure. Report all active MDTI subscriptions across provider, distributor, reseller, and customer tenants. Capture subscription IDs, term end dates, billing cadence, reseller ownership, and customer contacts.
- Communicate the product outcome. Tell affected customers that the standalone SKU ends August 1 and that MDTI capabilities are available through the Defender portal for customers with Microsoft Defender or Microsoft Sentinel. Do not promise a new SKU or a separate migration step that Microsoft has not required.
- Freeze the billing baseline. Export the pre-retirement subscription and invoice state. Mark the subscription for retirement handling so automated renewal or reordering logic does not recreate the standalone offer.
- Reconcile the credit memo. Match Microsoft's credit memo to each affected subscription and remaining term. Check currency, tax, reseller margin, and provider-to-customer allocation; investigate any unmatched or partial credit.
- Pass the credit through. Apply the customer credit using the contractual invoice or credit-note process, retain the source-to-customer mapping, and notify the reseller or end customer when the adjustment is posted.
- Close exceptions. Monitor for subscriptions that remain active, failed cancellation events, missing credit memos, duplicate credits, or customer invoices that still contain the retired SKU. Escalate through the established Microsoft support path with the retained evidence.
How Tagydes helps
Tagydes gives CSP teams a controlled workflow for subscription lifecycle, billing, and reconciliation events like this one. Providers can identify affected subscriptions across their reseller network, preserve the commercial baseline, and connect Microsoft's reconciliation data to customer-facing billing records.
- Lifecycle controls: track subscription state and prevent retired-SKU renewal or reordering workflows from becoming silent exceptions.
- Billing and credit handling: keep Microsoft invoice and credit data connected to customer invoices and reseller obligations.
- Reconciliation visibility: surface unmatched credit memos and term-level discrepancies for finance and support teams.
- Operator audit trail: retain the subscription, adjustment, approval, and customer communication history needed to explain the final account balance.
Source
Microsoft Partner Center Announcements — July 2026: MDTI reaches end of life August 1, 2026
Published 23 July 2026 on Microsoft Learn. Accessed 27 July 2026.