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.
Most ISVs want to beIP co-sell eligiblefor 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:
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 activecommercial marketplace account in Partner Center.
Have a completebusiness profilein Partner Center.
Publishthe offer on the commercial marketplace.
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:
Hit arevenue 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
Undergo and pass theMicrosoft technical validationfor 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
Submit areference architecture diagramfor Microsoft's review (not required for Azure App, Azure Containers, Azure VM and IoT edge offerings)
Have atransactablemarketplace 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.
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