What Microsoft’s Boom in Cloud Commits (MACC) Means for Azure Marketplace
Microsoft’s Cloud business just posted a record quarter, with Azure cloud spend commitments increasing $19.5 Billion as of January 2025. According to Partner Insight’s newsletter from February 3, 2025, total Microsoft customer cloud commitments have reached $149 Billion, up from $129.5 Billion the previous quarter. Total customer commits across the hyperscalers have reached $380 Billion.
What does this mean?
Microsoft’s cloud business is seeing steady growth, hovering right around 30% for the last two quarters. The tech giant is investing more in data centers to ensure that Azure can continue supporting cloud operations, including the expansive power needed to support emerging AI consumption.
AI isn’t going anywhere, and Microsoft will only continue doubling down on its investments in the area. AI-focused ISVs have a particularly huge opportunity by listing on AWS Marketplace, since B2B tech buyers and Microsoft reps alike are on the lookout for cutting-edge generative and agentic AI solutions that optimize business operations across all functions.
What does this tell us about Azure customers?
- SaaS companies are investing even more in Microsoft and its cloud ecosystem
- Enterprises feel confident about making 1+ year contracts on cloud, meaning there will be a bigger focus on long-term strategy
- Microsoft ecosystem ISVs are bullish on AI. Other areas to keep an eye on include cybersecurity, observability, and networking
- More Azure customers are purchasing software through Microsoft’s Azure marketplace and the other hyperscalers
What does the Microsoft commitment surge mean for ISVs selling on Azure Marketplace?
Customers who are built on Azure infrastructure are not only using their own consumption but have seen the value in also purchasing through the Azure Marketplace letting Microsoft double dip on profit and consumption.
If you’re listed on Azure Marketplace, now is the time to build a sales strategy around leveraging Microsoft customers’ committed spend budgets, also referred to as the Microsoft Azure Consumption Commitment (MACC) program. If you’re not listed, or listed but not transactable, now is the time to launch your Azure Marketplace listing. ISVs selling on the marketplace will have a major opportunity to establish themselves in the Microsoft ecosystem, co-sell with inside cloud sales reps, and drive revenue faster.
For any cloud customer, using as much of their committed spend and allocated dollars is a business priority. Otherwise, businesses are leaving money on the table. Think of this as a pre-loaded Visa gift card that expires after 1-2 years. In many organizations, key technology decision makers in functions like marketing and sales don’t even know their IT team has signed a cloud commitment deal with Microsoft or that those dollars are available for software purchases through the marketplace, as well as for their companies personal cloud spend. For ISVs who are listed and transactable on Azure Marketplace, this presents a challenge and opportunity – helping your prospect navigate committed spend budgets internally can lead to faster and more lucrative contract negotiations. Part of the challenge for sellers is identifying who owns the MACC budget at an organization, then helping the buyer navigate internal conversations to access the commits.
As a quick summary, the advantages of selling your solution through Azure Marketplace include:
- Faster deal cycles
- Easier renewals
- Better deals, with larger ACV
- Opportunities for co-selling with Microsoft reps
- Many organizations fail to spend all of their MACC budget before the contract ends, which means they will leave money on the table if they don’t spend it on something else, like third-party software on Azure Marketplace.
Curious about how you can improve your Azure Marketplace strategy? Schedule a 30-minute consultation with our team today.
FAQ
- What is MACC?
MACC refers to the Microsoft Azure Consumption Commitment (MACC) program. It is a contractual agreement where customers commit to spending a certain amount on Azure services over a specified period, in exchange for discounts, incentives, or benefits.
