Microsoft Azure Marketplace Co-Sell Guide for ISVs
Co-selling on the Azure Marketplace alongside Microsoft AEs can be one of the fastest ways for ISVs to build pipeline, drive leads, access new markets, and more.
With the help of the Microsoft Cloud Partner Programs and other incentives for ISVs, Microsoft has invested significant resources into their co-selling program, especially given the boom in Microsoft Azure Consumption Commitments (more on that later).
Whether you’re an ISV that is new to cloud marketplaces, or already co-selling on AWS and Google Cloud and looking to expand into Azure, this guide will help you accelerate success.
What is co-selling on Azure Marketplace?
When a Microsoft sales rep helps to sell a third-party solution listed on Azure Marketplace, that’s co-selling. Azure PDMs and AE introduce these solutions to their book of business, especially if the ISV’s solution helps drive consumption on Azure, sell more Microsoft products, or extend the functionality of existing Azure products – in other words, if selling the solution helps make Microsoft money.
In the Microsoft ecosystem, where reps focus on verticals like financial services and healthcare, co-selling can include account mapping, lead sharing, demand generation, co-marketing, and more.
Azure Marketplace’s role in the co-sell process
Third-party ISVs get listed on the Azure Marketplace so that their solution is easily discoverable by Azure sales reps, PDMs, and Azure customers.
While you can publish a listing without completing the technical requirements (this is called a “Contact Us” listing), to see real results in the Microsoft ecosystem you need to get transactable. Being transactable means that customers can use their Microsoft Azure Consumption Commitment (MACC for short) to purchase third-party marketplace solutions.
Invisory helps ISVs get listed in a matter of business days (as opposed to weeks or months) with our API integrations. Download our eBook, The Future is Transactable, to learn more.
Moving from co-sell ready to IP co-sell eligible
When a Microsoft sales rep helps to sell a third-party solution listed on Azure Marketplace, that’s co-selling. Azure PDMs and AE introduce these solutions to their book of business, especially if the ISV’s solution helps drive consumption on Azure, sell more Microsoft products, or extend the functionality of existing Azure products – in other words, if selling the solution helps make Microsoft money.
In the Microsoft ecosystem, where reps focus on verticals like financial services and healthcare, co-selling can include account mapping, lead sharing, demand generation, co-marketing, and more.
Creating a Cloud GTM strategy for Azure Marketplace
Simply getting listed on the Azure Marketplace isn’t enough to garner attention from Microsoft reps, even if you are an established brand. You will need to show some track record of success first. Once you have demonstrated that you can drive value for Azure’s customer base, you can prepare your Azure GTM materials
Your GTM strategy should include:
- First call decks to help streamline conversations with Microsoft reps and PDMs
- 1-pagers, solution briefs, and case studies that showcase your “better together” story, which highlights how your solution drives Microsoft revenue and Azure consumption
- Optimized listing page with keywords that help you rank on search
- Updating co-sell opportunities in Microsoft Partner Portal
- Socializing wins with Microsoft reps – if you sell into Financial Services and you recently closed a big deal with a major bank, that can encourage Microsoft reps to help you find similar customers
In the Microsoft ecosystem, where reps focus on verticals like financial services and healthcare, co-selling can include account mapping, lead sharing, demand generation, co-marketing, and more.
Co-sell and Committed Spend, a.k.a MACC (Microsoft Azure Consumption Commitment)
Perhaps one of the biggest drives of cloud marketplace adoption, including Azure Marketplace, is the boom in cloud commitments, which are expected to surpass $500B USD across AWS, Azure, and Google Cloud later this year.
MACC, or Microsoft Azure Consumption Commitment, is money that Azure customers agree to spend in their annual or multi-year contracts in order to receive discounts. Thanks to MACC, buyers – especially enterprise clients – are more likely to procure solutions through the Azure Marketplace, since third-party solution purchases can count towards burning down their MACC agreement.
To be able to burn your customer’s MACC down, you must:
- Become transactable on the Azure Marketplace
- You must reach the IP Co-sell incentivized designation.
It’s estimated that 30% of Azure customers don’t spend down their total MACC. For Azure ISVs, this is a huge opportunity to close deals with money that is already set aside.
Co-sell automation
Cloud GTM platforms like Invisory help ISVs streamline deal creation and management, including registering deals in both an ISV’s CRM and the Microsoft Partner Portal – all from one platform.
Co-sell outsourcing
Getting started with co-selling can be challenging for ISVs that are new to the Azure ecosystem. For this reason, more ISVs are looking to cloud marketplace experts to help streamline the co-selling process. Outsourcing co-sell can include having a partner help you build a cloud GTM strategy, register co-sell deals with Microsoft, and even assist with building relationships with Microsoft reps.
Before you choose a co-sell outsourcing partner, be sure to check what is included in the scope of work.
Invisory for cloud marketplace success
Cloud marketplaces offer ISVs countless opportunities, but getting listed, transactable and putting a cloud GTM strategy in motion takes time.
With Invisory, you can access API integrations, expert-built playbooks, a dedicated customer support manager and everything else you need to operationalize your cloud marketplace listings and start generating leads.
Accelerate success on Azure Marketplace, as well as other cloud marketplaces, including AWS, Google Cloud Marketplace and the Salesforce AppExchange.Reach out today.
FAQ
What is the history of co-selling on Azure?
Shortly after the Azure Marketplace was launched, the co-selling program began in 2017. The aim was to encourage Azure inside sales reps to drive Azure revenue and consumption through third-party solutions built by trusted Microsoft partners.
What are the three main co-sell channels on Microsoft?
- Direct, with AppSource and Azure Marketplace
- Partner-to-partner, through Microsoft’s partner ecosystem
- Seller engaged, where Microsoft sellers engage customers and partners
What is the difference between Microsoft sellers and direct sellers?
Microsoft sellers help customers solve key business problems and sell more Microsoft services through co-selling third-party solutions.
Direct sellers in the Azure ecosystem, on the other hand, focus on partner solutions that clearly drive Azure consumption and cover gaps that no other solution on the market does.
