FY26 Q2 Update: What's new in certified software designations
As we close out the year, we wanted to remind partners about an important upcoming change to legacy benefits. Starting on January 1, 2026, all partners will need to have a Solutions Partner* with certified software** designation to continue accessing legacy Azure IP co-sell benefits—including partner-reported Azure consumed revenue (PRACR), partner-led incentives, go-to-market benefits, and prioritized sales engagement. This change will help streamline the partner experience and simplify how partners engage with co-sell benefits. Attaining a certified software designation opens the door to significant partner opportunities—from expert guidance to financial incentives—all through a united benefit offering that streamlines access to high-value benefits. This change is effective immediately, but partners with legacy benefits can continue accessing them through December 31, 2025. Whether you already have legacy benefits or you’d like to gain access to these valuable benefits for the first time, here’s what to know: Now: Partners who don’t already have an eligible certified software designation can start the process of attaining one. Any net-new partner who wants to access benefits like PRACR and Azure IP co-sell support will need to have a certified software designation. Until December 31, 2025: Existing partners retain access to current benefits, including PRACR reporting and partner-led incentives. Starting January 1, 2026: Partners will need to have a certified software designation to continue accessing these benefits, so if you currently have Azure IP co-sell top tier benefits, you may already be eligible to pursue a certified software designation. Learn more about attaining a designation to keep or gain access to these high-value benefits today. *“Solutions Partner” refers to a company that is a member of the Microsoft AI Cloud Partner Program and may offer software, services, and/or solutions to customers. Reference to “Solutions Partner” in any content, materials, resources, web properties, etc. and any associated designation should be not interpreted as an offer, endorsement, guarantee, proof of effectiveness or functionality, a commitment or any other type of representation or warranty on the part of Microsoft. All decisions pertaining and related to your business needs including but not limited to strategies, solutions, partner selection, implementation, etc., rests solely with your business. **A certification is (1) specific to the solution’s interoperability with Microsoft products and (2) based on self-attestation by the solution owner. Solutions are only certified as of the date the solution is reviewed. Solution functionality and capability are controlled by the solution owner and may be subject to change. The inclusion of a solution in the marketplace and any such designations should not be interpreted as an offer, endorsement, guarantee, proof of effectiveness or functionality, a commitment or any other type of representation or warranty on the part of Microsoft. All decisions pertaining and related to your business needs including but not limited to strategies, solutions, partner selection, implementation, etc. rest solely with your business.Your next big move: Thriving in the reimagined Microsoft Marketplace
The Microsoft commercial marketplace has entered a new era – and if you’re an Independent Software Vendor (ISV) or Software Development Company (SDC), this is your ticket to scale. In earlier posts, we explored how to build and publish your solution through programs like ISV Success. Now, let’s talk about what happens next: once your solution is live on Marketplace, how do you maximise its potential? What benefits can you unlock? And what practical steps will set you up for success? I get asked this all the time: “We’ve built our app… what’s next on Marketplace?” Let’s dive in. One Marketplace to rule them all: The 2025 revamp As of 25 September 2025, Microsoft unified Azure Marketplace and AppSource into a single, streamlined Microsoft Marketplace. This consolidation is a game-changer: One hub for all solutions – from Azure infrastructure to SaaS apps extending Microsoft 365. Simplified customer experience – no more confusion about where to find your app. Greater visibility – your solution now sits in front of 6M+ monthly visitors browsing a unified catalogue. What’s new? AI Spotlight: A dedicated AI Apps and Agents category launched with 3,000+ AI-powered solutions. If your app integrates with Copilot or Azure AI, it gets premium placement – even embedded discovery inside Microsoft 365 and Azure interfaces. Expanded Categories: Solutions are now organised by technology stack and industry, making it easier for decision-makers to find what they need. Channel Integration: Reseller enablement is here. Authorised partners like Pax8 and TD Synnex can resell your Marketplace offer globally, turning Marketplace into a true channel platform. Why does this matter? More eyes on your listing, less friction in procurement, and new routes to market – direct and through channel – all add up to accelerated growth. Why listing on Microsoft Marketplace Is a must Publishing a transactable offer on Marketplace unlocks benefits that go far beyond visibility: Massive Reach & Built-In Trust Tap into Microsoft’s global cloud customer base. Marketplace signals credibility thanks to Microsoft’s vetting process. Simplified Procurement & Budget Alignment Transactable offers can count towards customers’ Azure Consumption Commitments (MACC) – a huge incentive for enterprise buyers. Co-Sell with Microsoft Sellers IP co-sell eligible offers appear in Microsoft’s internal tools. Sellers are incentivised to pitch your solution because Marketplace transactions contribute to their quota. Access to Enterprise Channels Enable resale scenarios through multiparty private offers and “resale-enabled” listings. Marketplace Rewards Tiered benefits include launch support, Azure credits, and marketing amplification. Partners who leverage Rewards see 7× higher sales on average. From listing to thriving: Practical steps Make your offer transactable – unlock MACC alignment and co-sell eligibility. Ensure Azure benefit eligibility – so customers know their spend counts. Activate Marketplace Rewards – assign a marketing contact in Partner Center and opt in. Engage Microsoft sellers – complete your co-sell profile and respond quickly to referrals. Aim for Certified Software Designation – the ultimate trust badge for ISVs. Level up: Certified Software Designation This new hallmark signals that your solution is well-architected and proven on Microsoft Cloud. Benefits include: Boosted search ranking and curated placement Enhanced seller discovery and prioritised leads Access to top-tier co-sell and funding programmes How to qualify: Transactable offer live on Marketplace Demonstrated traction (sales, reviews) Technical audit passed Customer success evidence Summary table: Marketplace benefits & how to unlock them Benefit How to Unlock Global Reach Publish a transactable offer Embedded Discovery Integrate with Microsoft 365, Azure, or Copilot MACC Alignment Ensure Azure benefit eligibility Co-Sell Eligibility Complete IP co-sell steps Marketplace Rewards Activate benefits in Partner Center Certified Software Badge Meet criteria and apply Channel Expansion Enable resale offers Final thoughts Your Marketplace journey is progressive: Start by listing and making your offer transactable Grow by leveraging Rewards and co-sell programs Differentiate with Certified Software designations Each step opens new doors – more customers, more Microsoft support, and more revenue opportunities. My advice: embrace Marketplace early. Make it easy for customers to buy and for Microsoft to sell on your behalf. Coming up next: we’ll demystify co-selling with Microsoft – how to work with field teams and align incentives for a win-win. Until then, happy listing – and may your Marketplace journey be fruitful. ___________________________________________________________________________________________________________________________________ Resources ISV Success - Discover offers and benefits of ISV Success to help you take your apps and agents to the next level. Marketplace Rewards - Learn how Marketplace Rewards helps software development companies close deals and reach more customers Microsoft Marketplace - Marketplace publisher | Microsoft Learn - How to guides for working in Microsoft Marketplace Microsoft Marketplace - Trusted source for cloud solutions, AI apps, and agentsChannel strategy, accreditation, and real results — All at UP LIVE Reston
FY26 Is the Year to Lead with Capability FY26 is here — and Microsoft is investing more than ever in partner-led growth. From expanded co-sell motions to marketplace acceleration and capability development, the message is clear: partners who demonstrate value through accreditation and specialization are leading the way. According to Microsoft’s FY26 Partner Strategy Update (July 2025), accredited partners are seeing 3x higher engagement in co-sell motions and 2x faster time-to-market in the commercial marketplace. These metrics reflect a growing emphasis on partner capability, specialization, and alignment with Microsoft’s GTM priorities. That’s why ISSI’s workshop at Ultimate Partner LIVE: Reston is a must-attend for partners looking to align with Microsoft’s FY26 strategy and drive measurable business impact. Making Accreditation Work for Partners and Vendors ISSI has spent years helping IT service organizations and hyperscalers build smarter, more effective partner channels. Their consulting and auditing services focus on transforming partner programs — not just for compliance, but for impact. Their workshop, Driving Channel & Customer Value with Partner Accreditation, will explore: How accreditation programs are designed and optimized Case studies from both a hyperscaler and a partner organization How partners can assess the relevance of accreditation to their business Ways to improve technical and business capabilities through structured programs ISSI’s recent article “The Ways That Partners Can Make Money” outlines five core ways partners generate revenue: Resale Managed Services IP Monetization Marketplace Success Co-Sell Engagement Accreditation amplifies each of these models. It builds trust, proves capability, and unlocks deeper engagement with vendors like Microsoft. Why Attend UP LIVE: Reston ISSI’s workshop is just one part of a much larger conversation happening at UP LIVE: Reston. With over 42 speakers — including leaders from Microsoft, AWS, Elastic, Carahsoft, and more — the event brings together the most accomplished voices in partnering: Jay McBain Canalys (part of Omdia)), Erwin Visser (Microsoft), Pat Primavera (Microsoft), and Darryl E. Peek II (Elastic) the innovators building the future of co-sell and marketplace success — Rebecca Jones (Bridge Partners) Reis Barrie (Carve Partners), Erin Figer (CORE Consulting LLC), and Sam Gong (WorkSpan) the leaders transforming GTM and channel execution — Craig Abod (Carahsoft), Shane Wilson (Cohesity), Scott Sacket (AvePoint), Tarek Shamounki (ServiceNow), Erika Irby (Veeam Software) Expect: Real conversations about what’s working now in co-sell, marketplace, and GTM execution Actionable insights from strategists, innovators, and channel leaders A community of peers who are shaping the future of partner success Whether you're a partner looking to refine your strategy or a vendor seeking stronger channel performance, UP LIVE is the place to connect, learn, and lead. The Takeaway Accreditation isn’t just a badge — it’s a business accelerator. ISSI’s work shows how structured partner programs can unlock new revenue streams, improve delivery quality, and align with Microsoft’s evolving priorities. If you’re serious about driving channel and customer value in FY26, don’t miss ISSI’s workshop — and don’t miss UP LIVE: Reston. ISSI manages client-specific programs that enable industry leaders to quantify, asses, and improve the quality of services available to partner organizations migrating or managing customer workloads. Visit www.issi-inc.com or contact them at asales@issi-inc.com to learn more. ⭐ SPECIAL OFFER As a valued Microsoft partner, Ultimate Partner is offering a 15% discount on general passes to experience UP LIVE. 👉 Register HERE USE CODE: ULTIMATEVIP15 at checkout If you are unable to attend, join us via the live stream: Ultimate Partner LIVE: RestonFY26 Q1 update: Make the most of your certified software designation
Key reminders for partners with current top tier benefits Now: Partners can start the process of attaining a certified software designation—which is required to access benefits like partner-reported Azure consumed revenue (PRACR) reporting. Until December 31, 2025: Partners can retain access to current top tier benefits, including PRACR reporting and Azure partner-led incentives. Starting January 1, 2026: Partners will need to have a certified software designation to continue accessing these benefits. Updates for FY26 PRACR-reporting partners PRACR reporting has moved to Partner Center: PRACR reporting is now centralized in Partner Center and tied to active contracts—meaning that partners will need to register legacy deals and renewals as net-new to maintain eligibility. Partners who missed the April 30 deadline for estimated Azure consumption (EAC) percentage (EAC%) will receive a default rate unless updated proactively. If partners are renewing expired deals as net new through the deal registration process in Partner Center, please ensure a co-sell motion has occurred as part of the renewal. Review the Partner Center requirements for PRACR and ensure your reported deals are registered accordingly. Make the most of PRACR with vNext documentation: To support your success with vNext PRACR, we’re launching a suite of clear, actionable documentation designed to guide you through onboarding, transitions, and ongoing participation. News and announcements From FAQs to playbooks, our resource collection has the tools you need to succeed as a Solutions Partner with a certified software designation. Explore resources Enhanced FY26 go-to-market benefits: Solutions Partners with certified software designations can access updated go-to-market (GTM) benefits, including solution play cards, solution briefs, and an animated solution video—all designed to raise awareness of your solution and support your co-sell success. Learn more here or here. New Industry AI designations now available: We introduced six new designations for industry-specific AI—Energy, Government, Telecom, Education, Defense, and Nonprofit—so software development companies can further differentiate and align their solutions to sector-specific needs. Learn more here. Incentives and offers Microsoft’s FY26 Partner Incentives empower software development companies to accelerate customer migrations and modernizations with substantial financial rewards. Partners with certified software designations—including Azure, Security, and Industry AI—can earn up to $175,000 USD for qualifying Customer Migrate & Modernize engagements. These incentives, a part of Marketplace Rewards Advanced Package, support a wide range of customer scenarios, from migrating on-premises environments to Azure-hosted solutions, moving from competitive platforms, expanding Azure solution footprints, and acquiring net new customers. Check out the “ISV Engagements” tab in the incentives guide for more information. Partner success Hear how Symphony AI, Rockwell Automation, Rescale, Accenture, and Avanade are leveraging their certified software designations to expand global reach, increase brand visibility, and deliver cutting-edge AI-powered solutions. View here. Follow the tag certified software designations to stay updated on quarterly partner news for certified software designations. *“Solutions Partner” refers to a company that is a member of the Microsoft AI Cloud Partner Program and may offer software, services, and/or solutions to customers. Reference to “Solutions Partner” in any content, materials, resources, web properties, etc. and any associated designation should be not interpreted as an offer, endorsement, guarantee, proof of effectiveness or functionality, a commitment or any other type of representation or warranty on the part of Microsoft. All decisions pertaining and related to your business needs including but not limited to strategies, solutions, partner selection, implementation, etc., rests solely with your business. **A certification is (1) specific to the solution’s interoperability with Microsoft products and (2) based on self-attestation by the solution owner. Solutions are only certified as of the date the solution is reviewed. Solution functionality and capability are controlled by the solution owner and may be subject to change. The inclusion of a solution in the marketplace and any such designations should not be interpreted as an offer, endorsement, guarantee, proof of effectiveness or functionality, a commitment or any other type of representation or warranty on the part of Microsoft. All decisions pertaining and related to your business needs including but not limited to strategies, solutions, partner selection, implementation, etc. rest solely with your business.
