Microsoft estimates, based on IDC data, that the total addressable market (TAM) for small and medium enterprises will reach $777 billion by FY26 and is on track to surpass $1 trillion by 2030.
The reimagined Microsoft Marketplace allows companies to connect and sell solutions and offerings to millions of commercial customers. At Ignite, Microsoft announced the general availability of resale enabled offers (REO).
REO allows software companies to work with their channel partners on providing offers through scalable models. Resale enabled offers make channel-led sales simple.
For software companies, this means expanding into new markets without adding operational overhead. Software companies (ISVs or SDCs) set the guardrails by granting resale rights for specific offers, then channel partners lead the sales cycle, making it easier to break into new markets and reduce sales and integration effort.
For channel partners, resale enabled offers modernize how they sell. Channel partners continue to own the customer relationship while transacting faster through Marketplace.
Software companies manage the authorization process.
For an offer to be eligible for REO authorization, it must be a publicly transactable solution of one of the following types:
The strategic goal of REO is simple: to remove friction and accelerate deal velocity by empowering channel partners to lead the sales cycle.
REO introduces a powerful, automated, two-channel process that puts control of the offer life cycle directly into the hands of the authorized channel partner.
The process begins when the SDC publishes its publicly available, transactable offer. The SDC then uses Partner Center to select and authorize specific channel partners, often setting guardrails by geography and offer type. This provides the SDC with visibility while granting necessary autonomy to the partner.
Once authorized, the channel partner gains access to create a version, often a hidden one, of the SDC’s listing. The partner uses this access to deliver a direct private offer to their customer.
Crucially, the partner manages the entire offer process, including custom terms and full control over pricing and packaging. This ability to tailor pricing is vital for driving growth in yield and profitability.
The customer completes the purchase through the Microsoft Marketplace.
This structure eliminates the need for the channel partner to build their own public listing, making the resale motion simple and quick.
REO is a game-changer because it provides strategic benefits to every party involved in the transaction:
Marketplace is a tool that dramatically accelerates growth.
Scaling and Complexity: the two-tier channel
The REO capability is globally available. Furthermore, in certain regions (currently the US, UK, and Canada), the feature allows for a two-tiered channel structure.
This means the SDC can authorize a first channel partner (such as a distributor or global scale partner) to manage a version of their listing. This first partner can then authorize a downstream partner to complete the transaction, which functions as a multi-party private offer in those specific countries. This enables global distribution partners to help SDCs drive scale through a two-tiered channel mechanism.
The opportunity is live and available today in Partner Center.
If you are a Software Development Company (SDC):
If you are a Channel Partner or Reseller:
REO is the powerful automation tool that allows Microsoft’s global partner ecosystem to embrace channel-led selling at scale. It bridges the gap between the SDC's need for reach and the channel partner's need for control, ultimately delivering the flexible, digital procurement experience that the modern buyer demands.