Your Guide to AWS CPPO, Azure MPO, and Channel Private Offers

As cloud marketplaces like AWS and Azure continue to evolve, channel partners such as Managed Services Providers (MSPs), agencies, and Value-Added Resellers (VARs)

 and the role of co-selling has only grown more important. Today, the emergence of Multi-Party Private Offers (MPO in Azure) and Channel Partner Private Offers (CPPO in AWS) have enabled thousands of trusted consultants around the world to sell solutions to their book of business on behalf of new and established independent software vendors (ISVs). 

Given that partner-led deals close faster, lead to higher ACV, and are more likely to renew, CPPOs on AWS and MPOs on Azure can be a strategic path forward for ISVs looking to unlock new revenue opportunities.  In fact, ecosystem led growth deals are 49% likelier to close when a partner is involved, and close 31% faster per a report from Pavilion + Crossbeam and organizations with strong partner programs experience a 20% increase in upsell revenue, and 15% higher renewal rates (per Canalys).

Canalys predicts that by 2027, “over half of all marketplace business will flow through partners (via channel partner offers, etc.) with an even greater share ‘influenced’ by services and systems integrator players.”

Here’s a look at what ISVs need to know about MPOs on Azure, CPPOs on AWS, and why partner selling benefits everyone involved. 

What is a multi-party private offer (MPO) on Azure?

Multiparty private offers on the Azure Marketplace function similarly to private offers but are sold to the customer via their channel partner. Microsoft estimates that one-third of cloud marketplace business relies on resellers. 

Like private offers, MPOs allow customers to negotiate terms, conditions,and pricing, while also simplifying the procurement process when a reseller is involved vs. a private offer which is done directly between an ISV and customer. For customers that have an Microsoft Azure Consumption Commitment (MACC), the entire purchase counts toward their commitment when they buy solutions that are Azure IP co-sell eligible. This helps partners land bigger sales and with less budget negotiation.

Steps for closing an MPO deal on Azure

• The ISV creates a private offer and sends it to the channel partner. Multiparty private offers are essentially the same as direct customer private offers. However, there is a separate tab in the Private offer section in Partner Center for creating/submitting them
• The Channel Partner receives and finalizes a private offer by adding their markup and sending it to the end customer.
• The customer accepts a private offer and completes the purchase.
• Microsoft invoices the customer according to their billing terms with Microsoft.
• Microsoft pays the ISV and the channel partner.

Prerequisites for creating a multiparty private offer as an ISV

• You’re enrolled in the Microsoft AI Cloud Partner Program.
• You created a commercial marketplace account in Partner Center.
• Your account is enrolled in the commercial marketplace program.
• The offer you want to sell privately is published to the marketplace and is publicly transactable.
• You’re creating a multiparty private offer for a partner that is eligible to sell multiparty private offers to customers. Review the partner eligibility criteria, or download a list of potential partners to sell with (sign in credentials required).
• You’re creating a multiparty private offer for a customer that is eligible to purchase multiparty private offers. Review the customer eligibility criteria.
• You have a marketplace developer, manager, or account owner role associated with your marketplace seller ID.

What is a channel partner private offer (CPPO) on AWS?

Like MPOs on Azure, CPPOs on AWS allow ISVs to authorize a Channel Partner to resell their software offering on AWS through a resale authorization. This authorization defines the pricing, duration, end-user license terms, and any additional services the Channel Partner can offer.

While you as the ISV determine the wholesale price, channel partners determine the mark-up when they create the private offer so both parties can profit. 

Steps for closing a CPPO deal on AWS

1. The ISV creates the product listing and has it approved by AWS as a public listing on the AWS Marketplace.
2. The ISV then creates “Selling Authorization” for a particular partner to use to sell the product(s) they listed. (ISV can authorize a blanket discounted cost for the channel partner to use for multiple customers, or set up single use)
3. The Channel Partner extends a private offer using products included in the “Selling Authorization” with a markup to the end customer.
4. End customer accepts the private offer and purchases the product 
5. AWS invoices the customer and distributes the funds to both the ISV and the Channel Partner

Prerequisites for creating a Channel Party Private Offer as an ISV

• Onboard as an AWS Seller and get listed on the marketplace
• Verify Channel Partner Account and obtain AWS account number from the partner. The AWS Marketplace interface allows you to search for channel partners, but some channel partners have either not registered the name correctly or have multiple accounts.
• Create a resale authorization 

What are the benefits of multi-party and channel private offers for customers, ISVs, and partners?

MPOs and CPPOs offer benefits across the board, including streamlined billing for deal splits, networking opportunities with strategic consultants, the chance to build stronger partner relationships and drive ecosystem-led growth, more trust with new solutions, access to committed spend budgets, streamlined procurement with new solutions, and more. 

Customers

Customers benefit from MPOs and CPPOS because they can procure software through trusted partners while still paying down their committed spend. A customer might be wary of procuring software through a new vendor, but if the partner can advocate for a pre-vetted solution that is listed on the marketplace, closing the deal becomes much easier for all parties.

ISVs

For ISVs, partner relationships can empower them to close deals they might have otherwise lost, widen their customer base, and establish their brand in new industries. 

Partners

MPOs and CPPOs allow partners working on behalf of ISVs to customize deals and unlock business opportunities that benefit both customers and ISVs. Channel Partners have a wide range of knowledge when it comes to solutions.

Invisory for Cloud Marketplace Success

Whether you’re an established ISV with a track record of success in cloud marketplaces like Azure, AWS, Google Cloud Marketplace or the Salesforce AppExchange, a brand new startup, or somewhere in between, Invisory helps organizations drive cloud marketplace success.

With our solution, you receive access to:

• Co-selling playbooks & dedicated enablement on selling with cloud marketplace sellers, building a partnership strategy, and leveraging channel partner private offers 
• API integrations that get you listed and  transacting faster
• Expert-built playbooks for navigating the Azure Marketplace ecosystem
• Go-to-market templates and expert guidance
• Dedicated customer success manager
• Support for developing a multi-cloud marketplace strategy

Ready to dive in? Reach out today.