Navigating Azure Co-Sell & IP Co-Sell: Decoding the Differences

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There is a lot of buzz about "co-selling" within the Azure ecosystem. Despite all the jargon, are we really clear on its nuances?

When you list on the Azure marketplace via the Microsoft Cloud Partner Program, you unlock digital sales motions, strategic account planning, and the chance to work alongside Microsoft's top sellers. You will receive additional incentives as this Microsoft partnership deepens, all designed to help you grow your business.

The terms "co-sell" and "IP co-sell eligible" can be confusing. Let's clarify and examine these terms in greater detail.

Demystifying the Co-Sell Lingo

Let's talk about in market, co-sell ready and IP co-sell eligible statuses.

Most ISVs want to be IP co-sell eligible for the following reasons:

  • Partner with Microsoft sellers on net new deals and accelerate existing pipeline
  • Simplify and speed up procurement by transacting through the commercial marketplace
  • Tap into Microsoft customers' pre-committed budget to speed up sales cycles and also retire Microsoft seller quota

 

We'll talk about these benefits in depth in our next post. For now, here are what these statuses really mean:

In market

Your solution is published and live on at least Azure Marketplace (for IT professionals and developers) or Appsource (line of business users)

  • Have a PartnerID (formerly MPNID) and an active commercial marketplace account in Partner Center.
  • Have a complete business profile in Partner Center.
  • Publish the offer on the commercial marketplace.

 

Co-Sell ready

This is the first tier of co-sell readiness. Your solution must already be In Market (see above).

Achieving this status requires:

  • Your offer or solution to be live on Azure Marketplace or Appsource (In Market)
  • A sales contact for each geography you want to co-sell in
  • Information and assets for your co-sell ready offer

 

Note: Offers routed through Azure's commercial marketplace developer program in Partner Center qualify for this status, given they meet the co-sell ready criteria. However, Microsoft Office apps/add-ins (like those for Outlook, Teams or Excel) don't qualify for co-sell ready status.

This is where most ISVs stop!

Don't be a statistic. You need to take this last critical step in order to actually "co-sell" with Microsoft

IP Co-Sell Eligible

Once you have achieved co-sell readiness, you must meet the following requirements in order to qualify for IP co-sell status:

  1. Hit a revenue benchmark: $100K of Azure consumed revenue (ACR) over a trailing twelve month (TTM) period - this is at the organization level (not solution level).For transactable offers in the commercial marketplace, a billed revenue of $100K over a trailing twelve month period will allow you to meet this requirement
  2. Undergo and pass the Microsoft technical validation for Azure-based solutions. 50% of your solution must be on Azure.Bonus: transactable Azure VM, Azure application solutions and Azure Container offers on the commercial marketplace automatically meet this requirement
  3. Submit a reference architecture diagram for Microsoft's review (not required for Azure App, Azure Containers, Azure VM and IoT edge offerings)
  4. Have a transactable marketplace offer on the commercial marketplace

 

For solutions that were IP co-sell eligible in FY23, you have till the end of December 2023 to get a transactable offer in the commercial marketplace.

Not sure how to deploy a transactable offer? We can guide you - contact us to get started.


 

 

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Juhi Saha
Juhi Saha

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