The technology industry is in the midst of a transformation, and nowhere is this more evident than in the evolution of cloud marketplaces. Microsoft’s unified Marketplace—bringing together AppSource and Azure Marketplace—has become the trusted destination for customers and partners to discover, transact, and scale cloud solutions, AI apps, and agents. But what’s truly driving momentum is the way software companies and channel partners are coming together to capture new opportunities.
A new era of partnership
The story begins with a simple observation: cloud marketplaces aren’t just about listing products—they’re about building relationships and accelerating growth. Microsoft’s ecosystem, now boasting over 500,000 partners and tens of thousands of solutions, is seeing explosive growth. Deals brokered through collaboration between software companies and channel partners are not only more frequent, but also 75% larger than average. The multiplier effect is real: for every dollar transacted, software companies see an additional $1.75 in value, while channel partners are seeing a remarkable $6.26 for every dollar.
Why is this happening?
The answer lies in the changing nature of technology buying. Today’s buyers prefer digital-first, integration-driven experiences. They want to discover, try, and deploy solutions with minimal friction, and they expect seamless interoperability. The marketplace is evolving to meet these expectations, supporting everything from product-led growth to seller-led and ecosystem-led go-to-market strategies. The value comes when Microsoft Marketplace is the mechanism of co-building and co-selling, in conjunction with a Microsoft Channel Partner. Here, customers get the perfect balance of agility and innovation, with good governance, guardrails and best practices, along with software lifecycle management and advisory services delivered through channel-led private offers.
The mechanics of channel-led selling with Microsoft Marketplace
Microsoft has built the marketplace to be an accelerated platform for innovation for our customers & partners – recently introducing the new globally available channel feature, resell-enabled offers - making it easier for channel partners to manage the entire lifecycle of a customer relationship. The partner led features of Marketplace —private offers, multiparty private offers, CSP private offers, and now resale-enabled offers—give partners full control over pricing, terms, and delivery, while streamlining the contracting process. The result? Faster deal velocity, increased profitability, and the ability to scale globally.
Building a Marketplace practice
Success in this new landscape requires more than just technical know-how. It’s about building a new business practice—starting with a strong foundation of leadership and ownership, enabling teams with the right processes and operational muscle, executing with clear reporting and visibility, and finally, scaling with dedicated resources and a vendor-light approach. Partners who embrace this journey are seeing significant new net business and deeper engagement with both Microsoft and their customers.
The future: AI, services, and the power of moments
As generative AI and agentic AI reshape the industry, services are growing even faster than products. Most deals now involve multiple partners, each contributing at different moments along the customer journey—from consulting and design to implementation and renewal. Marketplaces are becoming the platform where these moments are orchestrated, data is shared, and value is multiplied.
A platform for partnering
The Microsoft Marketplace is more than a storefront—it’s a platform for partnering, innovation, and growth. Whether you’re a software company looking to expand your reach, or a channel partner ready to build new practices, the opportunity is clear: embrace the marketplace, leverage new mechanisms, and unlock the multiplier effect.
I covered the channel-led marketplace opportunity in my session at Microsoft Ignite this year. You can watch the full session and hear firsthand how industry leaders are navigating the channel-led marketplace opportunity, discover practical strategies for building your own marketplace practice, and get inspired by real-world examples of innovation and growth within the Microsoft ecosystem. Dive deeper into the mechanics, the mindset, and the momentum that are shaping the future of partner-driven success.
Access the full session here: Executing on the channel-led marketplace opportunity for partners
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