When most Independent Software Vendors (ISVs) or Software Development Companies (SDCs) think about working with Microsoft, they assume it’s as simple as “getting listed on Azure Marketplace.”
In reality, partnering with Microsoft is a structured journey. Each step unlocks a new level of visibility, benefits, and revenue potential—not just with Microsoft itself, but with their global customer and partner ecosystem.
Here’s a roadmap to guide you through the process:
Your starting point is becoming an official Microsoft partner. This gives you access to technical resources, training, designations, and the programs that matter.
Why it matters:
Establishes your company as a recognized partner.
Unlocks benefits like internal use rights, technical support, and access to partner incentives once you qualify.
To work effectively with Microsoft, your solution must run on—or at least drive consumption of—Azure. This is how your success ties directly to Microsoft’s business model.
Why it matters:
Azure consumption growth is one of Microsoft’s top priorities.
Solutions that drive Azure usage get prioritized for co-sell and incentives.
Technical validation strengthens credibility with customers and Microsoft sellers.
Listing your solution on one or both of Microsoft's two marketplaces (Microsoft Marketplace and AppSourcE) gives you a storefront inside Microsoft’s ecosystem. But the real value is when your offer becomes transactable, meaning customers can buy your solution directly through Microsoft’s marketplace.
Why going transactable matters:
Faster sales cycles: Customers can use pre-committed budgets (MACCs) instead of dealing with procurement to process new POs.
Access to incentives and benefits: The more business you do on the marketplace, the more benefits you unlock, from PR to cash back.
MACC = Microsoft Azure Consumption Commitment.
Many enterprise customers commit millions in Azure spend. When your solution is transactable, customers can use their MACC to pay for it, meaning they don’t spend “new money,” they spend “already committed” budget.
Marketplace presence is only part of the equation. The next milestone is becoming Co-Sell Ready in Partner Center.
Requirements typically include:
A transactable offer published in Marketplace.
Azure consumption alignment.
Customer case studies, references, or proof of success.
Sales collateral Microsoft sellers can use.
Why it matters:
Your solution shows up in the same system Microsoft sellers use to track deals.
You can jointly register deals with Microsoft, increasing visibility.
Eligibility for cash and credit incentives (often $50K–$500K+ annually, depending on your scale).
This is where your partnership starts to drive real revenue. By selling through Marketplace, you:
Tap into Microsoft’s global customer base and procurement engine.
Shorten deal cycles (procurement already trusts Microsoft as the vendor of record).
Become more attractive to channel partners and system integrators, who prefer Marketplace deals because they’re easier to close.
Once you’re co-sell ready and selling through Marketplace, Microsoft rewards you with additional benefits:
Incentives: Cash or credits tied to building and selling on Azure, often ranging from $50K to $500K+ per year.
Pipeline acceleration: Microsoft AEs (Account Executives) and PDMs (Partner Development Managers) are more likely to bring you into customer opportunities.
Marketing support: Campaigns, events, and spotlight opportunities once you hit certain thresholds.
Working with Microsoft is an ongoing journey. The ISVs who succeed aren’t just “listed” on Marketplace. They:
Build on Azure.
Publish transactable offers.
Align their GTM with Microsoft’s priorities.
Earn co-sell status.
Leverage Marketplace sales to unlock incentives and quota relief for sellers.
This discipline makes you a path of least resistance partner: one that helps Microsoft win cloud revenue while helping customers unlock value from their Azure commitments.
If you’re an ISV wondering where to start, or frustrated by spinning your wheels, Partner1 helps companies navigate this journey, step by step, and maximize every dollar of incentives, pipeline, and seller alignment available along the way.
Take our free Marketplace Readiness Assessment and get started on your Microsoft partnership today!