Sell more on Microsoft Marketplace by avoiding 5 common mistakes when building in App Advisor
Common pitfalls when building your business around apps or agents and how App Advisor guides a curated, self-service journey prioritizing clarity at every stage, action over information, and scale without friction.Clarity at every stage: App Advisor turns Marketplace complexity into action
For software development companies, the Microsoft Marketplace journey isn’t always linear. It’s a series of decisions: what to build, how to package it, how to publish, and how to sell it, each with real dependencies and real friction.Dataverse → External System (Kajabi) – Licensing Clarification
Hi All, I'm looking to build a solution that utilises Dataverse, and I’m looking for some clarity on licensing for an integration with a third-party platform (Kajabi), specifically around API usage and external users. The main workflow: Data is stored in Microsoft Dataverse Power Automate is used to: Trigger on Dataverse events (create/update) Call the Kajabi API (via HTTP/custom connector) Create users, assign tags, and enrol them on courses Kajabi users: Do not access Power Apps, Dataverse, or Power Platform directly Only interact with Kajabi (external system) My Question: Do external Kajabi users require any Power Platform / Dataverse licensing if they never directly access Microsoft services and only consume data via API? ThanksHow App Advisor simplifies resources to clarify the most relevant next step
For software development companies, the Microsoft Marketplace journey isn’t always linear. It’s a series of decisions: what to build, how to package it, how to publish, and how to sell it, each with real dependencies and real friction. Read more about how App Advisor provides clarity at every stage.Accelerate your AI or agent build to sell on Marketplace with Quick-Start Development Toolkit
Want to skip right to coding in minutes? Start with the interactive wizard in App Advisor Building AI products quickly is becoming table stakes. Building them in a way that supports scalability, repeatability, and a path to commercialization is where software companies create advantage. The challenge now is reducing the time between identifying an opportunity and getting developers working inside a proven structure that supports real deployment outcomes. That’s where the AI, agentic, and Copilot branch of the Quick-Start Development Toolkit helps. Embedded directly within App Advisor, Quick-Start Development Toolkit helps software companies move from concept to implementation faster using guided development patterns, trusted architectures, deployable reference code, and practical resources designed to reduce friction across the development process. Build AI & agentic products faster without starting from scratch Development teams often know the customer scenario they want to solve. What slows momentum is deciding where to begin, selecting architecture patterns, and aligning implementation decisions across teams. The Quick-Start Development Toolkit helps remove that uncertainty. By answering a few focused questions about what you want to build, who it serves, and the products you’re building with, you’re matched with a development pattern designed to accelerate execution. Each development pattern includes: Self-serve, click-to-deploy reference code aligned to your scenario, Sample solution architecture to help visualize products and reduce guesswork, and Practical how-to resources and implementation guidance to overcome friction points, Everything is structured to support faster decision making and help teams move confidently into development. Accelerate development with purpose-built AI accelerators The AI and agent branch of Quick-Start Development Toolkit includes development accelerators designed around high-value scenarios, so your team can spend less time assembling foundations and more time building differentiated experiences. Each of these accelerators is built and fully maintained by Microsoft experts, so you can be confident your code template isn’t stale. Our most popular accelerators include: Multi-Agent Custom Automation Engine Accelerator: Delegate complex, repetitive tasks to AI agents that act on your behalf—executing work efficiently, reducing manual effort, and ensuring results align with your organization's standards. Conversation Knowledge Mining Accelerator: Improve contact center performance with AI-powered conversation intelligence—analyzing audio and text data on a large scale to show insights, improve service, and drive smarter decisions. Accelerate agentic applications for Unified Data Foundations (with Microsoft Fabric): Accelerate decision making at scale with secure, agentic AI built on a unified data foundation with two use cases for sales performance and customer insights. Each pattern includes common use cases, related resources, and pathways to adjacent scenarios so teams can continue progressing without losing momentum. The goal is to help your team move from experimentation to a product that can be packaged, deployed, and prepared for customers. You can see more of our accelerators here Coming this week: The Microsoft IQ solution accelerator leverages a shared intelligence layer to unify data, knowledge, and workflows, enabling AI-powered insights and coordinated actions for measurable business outcomes. Build with Microsoft Marketplace outcomes in mind Development choices shape commercial outcomes. Starting with trusted architecture and structured implementation guidance can help reduce redesign cycles later when preparing to package, publish, and scale. Quick-Start Development Toolkit helps software companies: Shorten time from idea to deployable AI product, Improve alignment across implementation decisions, Reduce development overhead through reusable foundations, and Create repeatable pathways toward publishing and selling. When development starts with clarity, commercialization becomes easier. Keep moving forward with App Advisor Quick-Start Development Toolkit is embedded within App Advisor because building is only one stage of the journey. App Advisor helps connect decisions across design, development, publishing, and growth so teams can continue moving forward with less context switching and more confidence. As your solution evolves, App Advisor provides curated, step-by-step guidance to help you prepare for Marketplace readiness and make the next decision faster. Ready to start? Explore Quick-Start Development Toolkit Start where you need help with App Advisor
Design reliable environment strategies for AI apps and agents in Microsoft Marketplace
Discover how to design a reliable environment strategy for AI apps and agents selling through Microsoft Marketplace. This Marketplace Community article explains why structured Dev, Stage, and Production environments are essential for safe updates, predictable behavior, and long‑term customer trust. As AI systems evolve through prompt updates, model changes, and shifting data contexts, behavior can vary across environments. Clear environment separation, controlled promotion paths, and consistent configuration boundaries help prevent regressions, support validation, and ensure changes can be introduced safely without impacting production workloads. Learn how to design environment strategies that enable confident iteration, support Marketplace readiness, and help customers operate solutions predictably at scale. Read more: Designing a reliable environment strategy for Microsoft Marketplace AI apps and agentsBuild observability for scalable AI apps and agents selling through Microsoft Marketplace
Discover how to design observability for AI apps and agents selling through Microsoft Marketplace. This Marketplace Community article explains why visibility into execution behavior is essential for operating AI systems confidently at scale—not just keeping them running. As AI apps and agents reason, branch, retry, and exit dynamically at runtime, traditional infrastructure metrics fall short. Behavioral signals such as execution flow, token usage, latency, and failure patterns help explain what systems are doing, why outcomes occur, and how limits and safeguards shape behavior across tenants and environments. Learn how observability turns runtime telemetry into clarity that supports customer trust, usage‑based billing, and scalable operations. Read more: Design observability for AI apps and agents selling through Microsoft MarketplaceAI apps and agents: choosing your Marketplace offer type
Choosing your Marketplace offer type is one of the earliest—and most consequential—decisions you’ll make when preparing an AI app for Microsoft Marketplace. It’s also one of the hardest to change later. This post is the second in our Marketplace‑ready AI app series. Its goal is not to push you toward a specific option, but to help you understand how Marketplace offer types map to different AI delivery models—so you can make an informed decision before architecture, security, and publishing work begins. You can always get a curated step-by-step guidance through building, publishing and selling apps for Marketplace through App Advisor. This post is part of a series on building and publishing well-architected AI apps and agents in Microsoft Marketplace. The series focuses on AI apps and agents that are architected, hosted, and operated on Azure, with guidance aligned to building and selling solutions through Microsoft Marketplace. Why offer type is an important Marketplace decision Offer type is more than a packaging choice. It defines the operating model of your AI app on Marketplace: How customers acquire your solution Where the AI runtime executes Determining the right security and business boundaries for the AI solution and associated contextual data Who operates and updates the system How transactions and billing are handled Once an offer type is selected, it cannot be changed without creating a new offer. Teams that choose too quickly often discover later that the decision creates friction across architecture, security boundaries, or publishing requirements. Microsoft’s Publishing guide by offer type explains the structural differences between offer types and why this decision must be made up front. How Marketplace offer types map to AI delivery models AI apps differ from traditional software in a few critical ways: Contextual data may need to remain in a specific tenant or geography Agents may operate autonomously and continuously Control over infrastructure often determines trust and compliance How the solution is charged and monetized, including whether pricing is usage‑based, metered, or subscription‑driven (for example, billing per inference, per workflow execution, or as a flat monthly fee) The buyer’s technical capability, including the level of engineering expertise required to deploy and operate the solution (for example, SaaS is generally easier to consume, while container‑based and managed application offers often require stronger cloud engineering and DevOps skills) Marketplace offer types don’t describe features. They define responsibility boundaries—who controls the AI runtime, who owns the infrastructure, and where customer data is processed. At a high level, Marketplace supports four primary delivery models for AI solutions: SaaS Azure Managed Application Azure Container Virtual Machine Each represents a different balance between publisher control and customer control. The sections below explain what each model means in practice. Check out the interactive offer selection wizard in App Advisor for decision support. Below, we unpack each of the offer types. SaaS offers for AI apps SaaS is the most common model for AI apps and agents on Marketplace—and often the default starting point. With a SaaS offer, the AI service runs in the publisher’s Azure environment and is accessed by customers through a centralized endpoint. This model works well for: Multi‑tenant AI platforms and agents Continuous model and prompt updates Rapid experimentation and iteration Usage‑based or subscription billing Because the service is centrally hosted, publishers retain full control over deployment, updates, and operational behavior. For multi-tenant AI apps, this also means making early decisions about Microsoft Entra ID configuration—such as how customers are onboarded, whether access is granted through tenant-level consent or external identities, and how user identities, roles, and data are isolated across tenants to prevent cross-tenant access or data leakage. For official guidance, see the SaaS section of the Marketplace publishing guide and the AI agent overview, which describes SaaS‑based agent deployments. Plan a SaaS offer for Microsoft Marketplace. Azure Managed Applications for AI solutions In this model, the solution is deployed into the customer’s Azure subscription, not the publisher’s. There are two variants: Managed applications, where the publisher retains permissions to operate and update the deployed resources Solution templates, where the customer fully manages the deployment after installation This model is a strong fit when AI workloads must run inside customer‑controlled environments, such as: Regulated or sensitive data scenarios Customer‑owned networking and identity boundaries Infrastructure‑heavy AI solutions that can’t be centralized Willingness or need on part of the customer or IT team to tailor the app to the needs of the end customer specific environment Managed Applications sit between SaaS and fully customer‑run deployments. They offer more customer control than SaaS, while still allowing publishers to manage lifecycle aspects when appropriate. Marketplace guidance for Azure Applications is covered in the publishing guide. For more information, see the following links: Plan an Azure managed application for an Azure application offer. Azure Container offers for AI workloads Container offer AI workloads—typically on AKS—using container images supplied by the publisher. This model is best suited for scenarios that require: Strict data residency Air‑gapped or tightly controlled environments Customer‑managed Kubernetes infrastructure The publisher delivers the container artifacts, but deployment, scaling, and runtime operations occur in the customer’s environment. This shifts operational responsibility, risk and compute costs away from the publisher and toward the customer. Container offer requirements are covered in the Marketplace publishing guide. Plan a Microsoft Marketplace Container offer. Virtual Machine offers for AI solutions Virtual Machine offers still play a role, particularly for specialized or legacy AI solutions. VM offers package a pre‑configured AI environment that customers deploy into their Azure subscription. Compared to other models, they offer: Updates and scaling are more tightly scoped Iteration cycles tend to be longer The solution is more closely aligned with specific OS or hardware requirements They are most commonly used for: Legacy AI stacks Fixed‑function AI appliances Solutions with specialized hardware or driver dependencies VM publishing requirements are also documented in the Marketplace publishing guide. Plan a virtual machine offer for Microsoft Marketplace. Comparing offer types across AI‑specific decision dimensions Rather than asking “which offer type is best,” it’s more useful to ask what trade‑offs you’re making in an AI app delivery model comparison. Key lenses to consider include: Who operates the AI runtime day‑to‑day Where customer data and AI prompts inputs and outputs are processed and stored Example: When evaluating Saas vs managed apps for AI, check industry specific compliance requirements to evaluate whether the data has to remain in the customer’s tenant or it can be sent to the publisher’s tenant. How quickly models, prompts, and logic can evolve The balance between publisher control and customer control How Marketplace transactions and billing align with runtime behavior SaaS Container (AKS / ACI) Virtual Machine (VM) Azure Managed Application What it is Fully managed, externally hosted app integrated with Marketplace for billing and entitlement Containerized app deployed into customer-managed Azure container environments VM image deployed directly into the customer’s Azure subscription Azure native solution deployed into the customer’s subscription, managed by the publisher Control plane Publisher‑owned Customer owned Customer owned Customer owned (with publisher access) Operational model Centralized operations, updates, and scaling Customer operates infra; publisher provides containers Customer operates infra; publisher provides VM image Per customer deployment and lifecycle Good fit scenarios • Multi‑tenant AI apps serving many customers • Fast onboarding and trials • Frequent model or feature updates • Publisher has full runtime control • AI apps or agents built as microservices • Legacy or lift-and-shift AI workloads • Enterprise AI solutions requiring customer owned infrastructure Avoid when • Customers require deployment into their own subscription • Strict data residency mandates customer control • Offline or air‑gapped environments are required • Customers standardize on Kubernetes • Custom OS or driver dependencies • Tight integration with customer Azure resources Typical AI usage pattern Centralized inference and orchestration across tenants • Portability across environments is important • Specialized runtime requirements • Strong compliance and governance needs Different AI solutions land in different places across these dimensions. The right choice is the one that matches your operational reality—not just your product vision. Note: If your solution primarily delivers virtual machines or containerized workloads, use a Virtual Machine or Container offer instead of an Azure Managed Application. Supported sales models and pricing options by Marketplace offer type Marketplace offer types don’t just define how an AI app and agent is deployed — they also determine how it can be sold, transacted, and expanded through Microsoft Marketplace. Understanding the supported sales models early helps avoid misalignment between architecture, pricing, and go‑to‑market strategy. Supported sales models Offer type Transactable listing Public listing Private offers Resale enabled Multiparty private offers Azure IP Co‑sell eligible SaaS Yes Yes Yes Yes Yes Yes Container Yes Yes Yes No Yes Yes Virtual Machine Yes Yes Yes Yes Yes Yes Azure Managed Application Yes Yes Yes No Yes Yes What these sales models mean Transactable listing A Marketplace listing that allows customers to purchase the solution directly through Microsoft Marketplace, with billing handled through Microsoft. Public listing A listing that is discoverable by any customer browsing Microsoft Marketplace and available for self‑service acquisition. Private offers Customer‑specific offers created by the publisher with negotiated pricing, terms, or configurations, purchased through Marketplace. Resale enabled Using resale enabled offers, software companies can authorize their channel partners to sell their existing Marketplace offers on their behalf. After authorization, channel partners can independently create and sell private offers without direct involvement from the software company. Multiparty private offers Private offers that involve one or more Microsoft partners (such as resellers or system integrators) as part of the transaction. Azure IP Co‑sell eligible When all requirements are met this allows your offers to contribute toward customers' Microsoft Azure Consumption Commitments (MACC). Pricing section Marketplace offer types determine the AI pricing models available. Make sure you build towards a marketplace offer type that aligns with how you want to deploy and price your solution. SaaS – Subscription or flat‑rate pricing, per‑user pricing, and usage‑based (metered) pricing. Container – Kubernetes‑based offers support multiple Marketplace‑transactable pricing models aligned to how the workload runs in the customer’s environment, including per core, per core in cluster, per node, per node in cluster, per pod, or per cluster pricing, all billed on a usage basis. Container offers can also support custom metered dimensions for application‑specific usage. Alternatively, publishers may offer Bring Your Own License (BYOL) plans, where customers deploy through Marketplace but bring an existing software license. Virtual Machine – Usage-based hourly pricing (flat rate, per vCPU, or per vCPU size), with optional 1-year or 3-year reservation discounts. Publishers may also offer Bring Your Own License (BYOL) plans, where customers bring an existing software license and are billed only for Azure infrastructure. Azure Managed Application – A monthly management or service fee charged by the publisher; Azure infrastructure consumption is billed separately to the customer. Note: Azure Managed Applications are designed to charge for management and operational services, not for SaaS‑style application usage or underlying infrastructure consumption. Buyer‑side assumptions to be aware of For customers to purchase AI apps and agents through these sales models: The customer must be able to purchase through Microsoft Marketplace using their existing Microsoft procurement setup Marketplace purchases align with enterprise buying and governance controls, rather than ad‑hoc vendor contracts For private and multiparty private offers, the customer must be willing to engage in a negotiated Marketplace transaction, rather than pure self‑service checkout Important clarification Supported sales models are consistent across Marketplace offer types. What varies by offer type is how the solution is provisioned, billed, operated, and updated. Sales flexibility alone should not drive offer‑type selection — it must align with the architecture and operating model of the AI app and agent. How this decision impacts everything that follows Offer type selection for AI apps and agents ripples through the rest of the Marketplace journey. They directly shape: Architecture design choices Security and compliance boundaries Fulfillment APIs and billing integration Publishing and certification requirements Cost, scalability, and operational responsibility Follow the series for updates on new posts. What’s next in the journey With the offer type decision in place, the focus shifts to turning that choice into a production‑ready solution. This includes designing an architecture that aligns with your delivery model, establishing clear security and compliance boundaries, and preparing the operational foundations required to run, update, and scale your AI app or agent confidently in customer environments. Getting these elements right early reduces rework and sets the stage for a smoother Marketplace journey. See the next post in the series: Designing Production‑Ready AI App and Agent Architectures for Microsoft Marketplace. Key resources See curated, step-by-step guidance to help you build, publish, or sell your app or agent (no matter where you start) in App Advisor Quick-Start Development Toolkit can connect you with code templates for AI solution patterns Microsoft AI Envisioning Day Events How to build and publish AI apps and agents for Microsoft Marketplace Get over $126K USD in benefits and technical consultations to help you replicate and publish your app with ISV Success
