The difference between Azure co-sell and IP co-sell ready

The word co-sell or collaborative selling gets thrown around a lot in the Azure ecosystem – do you know the difference? 


A benefit of selling on the Azure marketplace and your Microsoft Cloud Partner Program membership is that it can include digital sales motions, account or territory strategic planning and collaborative selling with Microsoft sellers. And as you invest in your Microsoft partnership, you can see additional benefits and incentives that help your business grow. 

Confusion arises in understanding the terms and the differences between the co-sell terms and what they mean as far as requirements and benefits. This blog will help break down the difference between Azure co-sell and IP co-sell ready. 


First let’s look at the co-sell status: 

In this blog we’re going to focus on the middle two statuses – co-sell and IP co-sell ready. 


Co-sell ready

To qualify for co-sell-ready status, your offer or solution must be published live to at least one of the online stores: Azure Marketplace or Microsoft commercial marketplace. If you are not yet published, you can use this guide to learn more about the process. 


To achieve co-sell ready status an ISV must complete the following steps. We’ve included links to the items listed to help you along. 


Note that any offer published through the Azure commercial marketplace developer program in Partner Center is eligible for co-sell-ready status if co-sell-ready requirements are met. Apps and add-ins for Microsoft Office (for Microsoft Teams, Microsoft Outlook, and Microsoft Excel, for example) are not eligible for co-sell-ready status.


IP Co-sell Eligible

After achieving co-sell-ready status, there are four more requirements to achieve Azure IP co-sell eligible status:

  • Requirement 1: Reach the required revenue threshold.
    At the organization level, that is $100K of Azure Consumed Revenue over the trailing 12-month period. This threshold can be reached with a combination of Azure solutions. If the offer is transactable (more on the benefits of being transactable in this blog)  in the commercial marketplace, you can meet this requirement by meeting a billed revenue threshold of $100K over the trailing 12-month period.
  • Requirement 2: Pass the Microsoft technical validation for an Azure-based solution which is a subset of RAD review.
    A technical validation must confirm that more than 50% of your offer’s infrastructure uses repeatable IP code on Azure. (Transactable Azure VMs, Azure Containers and Azure application solutions on the commercial marketplace meet this requirement by default.)
  • Requirement 3: Provide a reference architecture diagram.
    Upload a reference architecture diagram with your co-sell documents in Partner Center for review. This item is not mandatory for offer types Azure App, Containers, VMs and IoT Edge module. For guidance on creating this diagram, see Reference architecture diagram
  • Requirement 4: Offer Transactability on marketplace. Effective July 11, 2023, your new offers (aka solutions) should be transactable on Azure marketplace. This condition is applicable only to get IP co-sell eligible status.


So why go through the effort of becoming IP co-sell eligible? Bringing your co-sell eligible Azure solutions to the marketplace allows you to: 

  • Attract enterprise customers with cloud commit budgets that can be used on your solution
  • Differentiate by offering a faster and easier way to buy
  • Expand your brand awareness
  • Join forces with Microsoft sellers to access new deals and speed up pipeline opportunities
  • Tap into more opportunities for growth and sales success


Unsure where you fit into the Microsoft partner maturity level or how to get to co-sell or IP co-sell eligible? Invisory is here to help.  Reach out to our team and we can help in creating an easier and more lucrative path to market.  

Resources to help you grow & scale your business

Move beyond co-selling and into co-marketing for impact. Check out this co-marketing partner playbook to take your strategy to the next level.

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