FY2026 Is Here: 8 Ways to Step Up your Azure Marketplace Co-Sell Strategy
As many of you know, Microsoft’s fiscal year begins on July 1. For ISVs co-selling on Azure Marketplace, this means changes in accounts on Microsoft’s end, programmatic updates, and an opportunity to refresh your GTM strategy.
Like every major tech company, Microsoft is undergoing seismic changes. In the first week of FY2026, Microsoft announced 9,000 employees would be laid off, in an attempt to cut spending and improve margins. (Other tech giants, notably Meta, or taking the opposite and riskier approach – upping spend on risky AI that seem difficult to monetize, like its flopped Metaverse adventure during Covid-19.)
That said, Microsoft is doubling down on its Azure Marketplace business, with cloud commits shattering records, totalling $157 Billion earlier this year with a 33% year-over-year growth, per Partner Insight. With AWS, Azure’s biggest competitor and the leader in the cloud marketplace space, heralding numerous ISVs with over $1B in revenue on its marketplace, Microsoft is focused on finding and nurturing winners.
Here’s 8 steps Azure ISVs can take to ensure they rise to the top in FY2026 and beyond.
Tips for Kickstarting your Azure Marketplace Co-Sell Strategy for FY 2026
- Learn who will be your advocates on Microsoft’s side of the business. With another round of layoffs and changing accounts, over communication is a must. This is why having multiple partners on the inside is key.
- Understand if any of Azure Marketplace’s updates to incentives impact you. Microsoft unrolled a complex, sprawling 164 slide show with programmatic updates. You don’t need to go at it alone. A strategic partner like Invisory can help you understand how these impacts will affect your Azure Marketplace business.
- Reach or maintain IP co-sell status, which is basically table stakes in today’s marketplace environment. This means being transactable and meeting a number of Microsoft’s other requirements, as outlined in our Azure Marketplace co-sell guide.
- Complete the “Supplement Content Survey,” which is required for transactable listings. This will take less than an hour but is key to remaining compliance with Microsoft. You can find this in Azure Partner Center.
- Earn or maintain Software Designations. Check out our guide on the topic to learn more.
- Keep the momentum going with co-sell deals, especially top ones that are likely to close. Just because Microsoft’s fiscal year is over doesn’t mean it’s time for rest. Ask yourself, Will this deal get traction with Azure sales reps? Do I have a customer with MACC who is willing to transact on the Azure Marketplace?
- Audit your Partner Center profile, to make sure everything is in good shape, as you would any other platform. For instance, if a user has left your organization, it’s best to remove their access and account.
- Evaluate your co-selling materials. While you don’t need to update your 1-pagers, battle cards, and pitch decks right away, it’s good to take stock in your current GTM materials.
Beyond FY2026 Q1 with Azure Marketplace
In reality, the dust from FY2025 won’t settle for a few months into FY2026. Microsoft will still be crediting deals in July and even into August. By September, expect Microsoft workers themselves to have a stronger understanding of their priorities for the fiscal year.
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.
