Microsoft Azure Consumption Commitment, explained for software companies
MACC (Microsoft Azure Consumption Commitment) is a contractual agreement in which an enterprise commits to spending a set amount on Microsoft Azure over a defined term, typically in exchange for better pricing. Purchases of eligible third-party software through Microsoft Marketplace count against that commitment, which means your enterprise customers can buy your software with cloud budget they've already committed. For software companies selling to enterprises, that last sentence changes how deals close. Here's how it works.
How MACCs work
Large enterprises negotiate Azure pricing by committing to consumption: hundreds of millions of dollars across multi-year terms is common at the high end. That committed spend must be used within the term or, in many agreements, it is forfeited.
Here's the part most software leaders are not aware of: when an enterprise buys eligible third-party software through Azure Marketplace, 100% of the purchase price decrements their MACC. The buyer isn't finding new budget for your software. They're using budget they've already committed to Microsoft, often budget they're at risk of losing.
Why this matters to your enterprise deals
Three things happen when a deal routes through a buyer's MACC:
- The procurement objection shrinks. The purchase runs through an existing Microsoft agreement the buyer's procurement and legal teams have already approved. In our client engagements, this has repeatedly turned quarters-long procurement cycles into weeks.
- The budget conversation changes. You're no longer competing for new budget. You're helping the buyer consume a commitment they've already made; their cloud team often wants the purchase to happen.
- Microsoft's sellers gain a reason to help. Marketplace transactions support Microsoft account teams' own goals, which is part of what makes co-sell relationships work in practice.
One Partner1 client generated over $2 million in Azure Marketplace transactions with MACC-eligible customers within six months of becoming transactable, and now co-sells with more than 500 Microsoft accounts.
What makes your offer MACC-eligible
Not every marketplace listing qualifies. To be MACC-eligible, your offer must be:
- Transactable: purchasable through the marketplace, not a "Contact Me" listing (most listings are the latter, and they decrement nothing).
- An eligible offer type: carrying the "Azure benefit eligible" designation.
- Structured for enterprise purchase: in practice, most MACC-decrementing revenue moves through private offers: custom-priced deals negotiated with a specific customer and invoiced through Microsoft.
How to find out if your customer has a MACC
Most buyers won't volunteer it, and many deal teams don't think to ask. The question to put to your champion's cloud or finance team: "Does your organization have an Azure consumption commitment, and would purchasing through Microsoft Marketplace count against it?" If the answer is yes, the purchasing path for your deal may already exist.
Frequently asked questions
Does a marketplace purchase count fully against MACC? For eligible offers, 100% of the purchase price decrements the commitment, one of the few third-party purchase paths with full decrement.
What fee does Microsoft charge on marketplace transactions? Microsoft's agency fee is 3% (1.5% for renewals) of the transaction for transactable offers.
Is MACC the same as an Enterprise Agreement? No. An Enterprise Agreement (or Microsoft Customer Agreement) is the contract vehicle; MACC is a consumption commitment negotiated within it.
Do AWS and Google Cloud have equivalents? Yes: AWS PPA/EDP and Google Cloud committed-use agreements play similar roles, with different marketplace decrement rules.
How do I make my product transactable? Through Microsoft Partner Center and by ensuring you have the appropriate technical configuration. Contact Partner1 to make your offer transactable in days, not months.
Partner1 is a partner ecosystem firm that helps B2B software companies turn cloud and AI ecosystems into revenue. From the team behind Pegasus, Microsoft's elite startup program, Partner1 has worked with hundreds of companies on marketplaces, co-sell, and partner strategy. Partner1 is a two-time Inc. Power Partner award winner and a WBENC-certified women-owned business. Learn more at www.partner1.io.
