Meet customer business needs with flexible billing schedules in the marketplace
Co-authored by Trevor_Yeats Today, we’re announcing that Microsoft now offers flexible billing schedules through private offers to better align with customer needs. Flexible billing schedules are available globally to all marketplace-supported currencies. Watch these demo videos to learn more about flexible billing schedules. The value for your customers and for you With flexible billing schedules, customers can buy with confidence knowing that private offers can be customized for virtually any contract value and billing timeline to align with their requirements. Partners can tailor customer private offers and multiparty private offers to meet those requirements. This streamlines sales and accelerates deal velocity. With over 100 partners in our private preview, we’re excited to make this capability publicly available. Many of these partners have achieved remarkable success, closing deals worth millions of dollars. “Flexible billing in Microsoft marketplace has significantly improved how our sales teams engage with customers. It allows them to meet each organization's and customer's procurement needs, whether it's aligning with fiscal year budgets or accelerating project timelines from evaluations to implementations. Additionally, it helps with managing cloud commitment benefits. This flexibility has made it easier for our customers to purchase and deploy solutions faster, without waiting for specific budgets to become available. We can now set up flexible billing schedules to accommodate their needs.” Brett Ferancy, Global Alliance Leader, Abnormal AI Example use cases See below for some real-world examples of how partners and customers are leveraging flexible billing. Variable pricing with specific dates. In this example, the customer pays a setup fee at the start of billing, followed by variable pricing throughout the contract to match consumption patterns and budget cycles. 3-year deal $80M total Notes Immediate charge when billing starts $2M Setup fee – 1 st month 01 Jan 2025 $5M Year 1 installment #2 15 Jul 2025 $3M Year 1 installment #3 01 Jan 2026 $10M Year 2 installment #1 15 Jul 2026 $10M Year 2 installment #2 01 Jan 2027 $20M Year 3 installment #1 15 Jul 2027 $30M Year 3 installment #2 Variable quarterly billing. In this example, the customer pays a setup fee at the start of billing, followed by variable pricing each quarter. 1-year deal $10M total Notes Immediate when billing starts $2M Q1 01 Jun 2025 $3M Q2 01 Sep 2025 $2M Q3 01 Dec 2025 $3M Q4 Delayed start for billing. In this example, the customer gets the first two months free, followed by varied payments throughout the contract to match budget cycles 2-year deal $25M total Notes Immediate when billing starts $0M Free – 2 months 01 Mar 2024 $10M Year 1 fee 15 Jan 2025 $5M Year 2 installment 1 01 Jul 2025 $10M Year 2 installment 2 How it works To start using flexible billing for private offers: The software partner creates a private offer in the marketplace. Currently flexible billing supports SaaS flat rate offers, VM software reservations, and professional services. Partner must choose “Customize SaaS plans and Professional Services” or “Customize VM software reservations” when creating a new private offer. On the configure pricing page, under “billing frequency,” the partner will select “flexible schedule when the contract duration is 1-year or greater.” The software partner creates the billing schedule with up to 70 installments up to $100,000,000 USD, or any of the currencies supported by marketplace, over the length of the deal. There is also an option to book an immediate charge when billing starts or delay the first charge to a date in the future. Private offers can have up to ten included product plans. Each plan has its own billing frequency and may include a unique flexible schedule. A flexible schedule does not apply to all plans included in the private offer and must be set up independently. The software partner can also create a schedule in their customer’s local billing currency using the market pricing template. The customer accepts and purchases the private offer with the flexible billing schedule. For a multiparty private offer, the process is the same except: The software partner sends the private offer to the channel partner. The channel partner adds their price adjustment percentage aligned to the flexible billing schedule and passes it to the customer. Eligibility Any company who is part of the Microsoft AI Cloud Partner Program can sell on the marketplace through private offers with flexible billing. Details are provided in our documentation, but at a high-level: Be a member of the Microsoft AI Cloud Partner Program (it’s free to join) Sign the marketplace publisher agreement Publish your offer Sell private offers with flexible billing In addition, we have many support resources for partners depending on where they are on their marketplace journey. For example, software development companies can join ISV Success for tools and resources that help them publish their solution and maximize its reach on the marketplace. Get started with flexible billing on marketplace We invite you to start leveraging these new improvements to flexible billing today. Learn more by visiting aka.ms/flexbill-docs.Co-sell Coaching: Episode 1, Carve Partners - AMA
PLEASE NOTE: If you are planning to attend this event, please either use the 'Add to calendar' option below the "Attend" button, or create your own calendar reminder. Clicking attend will not automatically add this event to your calendar, and you will not receive any email notifications reminding you about the event. Join us for Co-sell Coaching, where your peer Microsoft partners will walk you through their best practices on how to co-sell effectively through the marketplace. Our first community event in this series will feature Carve Partners. Join to learn: Unlock Faster Growth: Why you should prioritize co-selling Get Started the Right Way: How to create a co-sell strategy and get started Maximize Your Impact: How to prioritize deals and build your co-sell pipeline Engage Microsoft Sellers: What to expect and how to get their attention Keep Winning: What to do after a co-sell win to build ongoing momentum Each Co-sell Coaching event features a live Q&A with Microsoft partners and Microsoft subject-matter experts.How Certified Software Designations accelerates Azure Marketplace success at Stibo Systems
🎉 Proud moment at Stibo Systems! We’ve officially earned the Microsoft Solutions Partner Designation with Certified Software status for our Master Data Management solution across Retail AI, Manufacturing AI, and Financial Services AI. Great to know that Microsoft recognizes the quality, security, and performance of our AI roadmap. The Certified Software badge is highly valuable for sales teams at Stibo Systems, our Alliance Partners and Microsoft sellers for several strategic reasons: --- 🔑 1. Builds Customer Trust The Certified Software designation signals that Stibo Systems solution meets Microsoft’s rigorous standards for security, performance, and interoperability. This credibility helps reduce buyer hesitation and accelerates decision-making. --- 🚀 2. Differentiates in a Crowded Market With many vendors offering similar solutions, the Solutions Partner status sets our offering apart. It shows that Stibo Systems is aligned with Microsoft’s strategic priorities, especially in AI and cloud innovation. --- 💼 3. Opens Co-Selling Opportunities Certified partners are eligible for Microsoft co-sell programs, where Microsoft sales teams actively promote our solution to their customers. This can expand our reach and shorten sales cycles. --- 🌍 4. Increases Visibility Certified solutions are featured in the Microsoft Commercial Marketplace, giving us exposure to a global audience. This can drive inbound leads and support international expansion. Learn more about how Stibo Systems boosts growth, deal size with Marketplace Rewards
MCAPS Start recap for software development companies
July 23 - 10 AM PST | 1 PM EST Microsoft just kicked off its new fiscal year with big updates at MCAPS Start — but what do they really mean for software development companies? In this webinar, we’ll break down the key announcements and share Carve’s expert take on what matters most for software development companies. Walk away with clear guidance on how to align your strategy with Microsoft FY26 priorities. We'll cover: What changed (and what didn’t). Where software development companies should focus time and resources. How to think about co-sell, marketplace, and solution plays. If you’re building your Microsoft partnership and want clarity for FY26 —this session is for you. Register hereLock in marketplace terms for up to five years with multiyear contract durations
Co-authored by Trevor_Yeats We’re excited to announce that the Microsoft marketplace now supports multiyear contract durations—enabling customers and partners to lock in terms and pricing for up to five years. New options include four and five-year terms for SaaS and Professional Services, and two, four, and five-year terms for Virtual Machine Software Reservations (VMSR). These contract durations are available globally across all marketplace-supported currencies. The value for your customers and for you With multiyear contract durations, customers can buy with confidence knowing they will have stability and continuity of service, making it easier to plan and forecast expenses and lock in substantial savings that often come with longer contracts. Partners benefit by supporting customers’ budget needs, strengthening customer relationships, reducing administrative burdens, and growing reliable revenue streams. “Our customers value five-year contracts for the stability and long-term value they provide. With multiyear contracts now available in Microsoft marketplace, we can better align with their operational timelines, reduce renewal cycles, and focus on building lasting relationships—while driving predictable revenue.” Sue Wilkinson, Global Director of Partners, IFS How it works To enable multiyear contract durations, software partners must take the following steps: Create a public offer with multiyear contract durations. Partners must ensure their public offers include extended contract terms before they can create private offers with those durations. Partners have two options: Update an existing public plan to support new options for extended durations (i.e., four and five-year options for SaaS offers and two, four, and five-year options for VMSR), or Create a new public plan that includes multiyear contract durations. Create private offers with multiyear contract durations. Once a public offer with multiyear contract durations is published, partners can configure private offers that leverage those durations. Notes: Existing customer agreements cannot be modified mid-term to extend contract length. Customers must cancel their current plan and purchase a new one that includes the desired extended duration. Multiyear contract durations for CSP offers will be enabled later this summer. Until then, partners can create new offers without opting to resell through CSP to take advantage of extended contract durations. Creating multiyear contracts with flexible billing schedules Partners can create private offers that combine multiyear contract durations with flexible billing options—like quarterly, semiannual, or bimonthly—making it easier to align with customer needs and streamline sales. “Microsoft’s recent launch of multiyear contracts and flexible billing has been a game changer, simplifying the buying process and enhancing the customer experience. We can now build private offers in the Microsoft marketplace in a more natural way that mirrors our contracts in the platform.” Sue Wilkinson, Global Director of Partners, IFS Learn more about flexible billing schedules and capturing the marketplace opportunity. Eligibility for multiyear contracts and how to get started Any company who is part of the Microsoft AI Cloud Partner Program can sell on the marketplace with multiyear contract durations. Details are provided in our documentation, but at a high-level: Be a member of the Microsoft AI Cloud Partner Program (it’s free to join) Sign the marketplace publisher agreement Publish your public offer with multiyear contract durations. Sell private offers with multiyear contract durations. In addition, we have many support resources for partners depending on where they are on their marketplace journey. For example, software development companies can join ISV Success, within the Partner Program, for tools and resources that help them publish their solution and maximize reach through the marketplace. Learn more by visiting: Microsoft commercial marketplace transact capabilities FAQs: https://aka.ms/multiyear-FAQsWhy co-selling with Microsoft is transformational: insights and strategies from Abnormal Security
Co-selling with Microsoft can be a transformational growth lever for software development companies, yet it's true potential is often misunderstood. Many organizations jump into co-selling without fully grasping the intricacies involved—overlooking critical best practices and lessons learned from real-world experience. At Abnormal Security, true co-sell success has been achieved through a meticulously crafted strategy built on practical insights and a deep commitment to partnering with Microsoft. I’m excited to share more about our own co-sell journey, what I have learned through the process, and advice I would share with other partners in Episode 2 of Co-sell Coaching, coming to the marketplace community on April 23 rd at 9:00 am PDT About Brett: Brett Ferancy has nearly 20 years of experience working with Microsoft in various capacities as well as building out successful global alliance programs. Brett joined Abnormal Security over 2.5 years ago and has supported initiatives that drove significant growth, success and modernized the Azure Marketplace approach in regions globally. Additionally, Brett has been a highly engaged a Marketplace Community Champion since the community was first built in 2023 Who we are Abnormal Security is a recognized leader in cloud email security, dedicated to protecting organizations from advanced email threats. Our innovative approach and industry expertise have positioned us as a trusted partner within the Microsoft ecosystem. Our journey from being an unmanaged partner to becoming managed was a transformation that redefined our market approach – and one we are eager to share in our upcoming Co-sell Coaching episode. Abnormal Security's co-sell journey The evolution of our co-sell approach with Microsoft has been defined by continuous learning and strategic adaptation. Early on, it became clear that success isn’t merely about being listed on a platform—it’s about creating genuine value through thoughtful collaboration. Through a strategic, repeatable co-sell strategy, we have successfully navigated from an unmanaged partner to managed globally. Real world insights and co-sell lessons learned along the way In my Co-sell Coaching session, I will discuss the following topics Transforming our business: how Abnormal Security’s refined co-sell strategy moves the needle with Microsoft teams, removes pipeline noise, and creates true collaboration. Engaging Microsoft sellers: how targeted collaboration with Microsoft’s field teams has streamlined the sales process unblocked deals and accelerated wins. From my experience, engagement starts with consistent, thoughtful referrals added to Partner Center; this focuses the efforts on meaningful opportunities to drive positive customer outcomes. Building a resilient pipeline: how small changes can drive large outcomes. For example, sharing win wires after a co-sell win or, for a partner-led opportunity, sending a note to the Microsoft sales team that highlights the win. Simple gestures such as these have opened doors for new collaboration opportunities. Actionable co-sell insights: practical, repeatable, actionable insights that build momentum with Microsoft teams to drive transformative business acceleration. Why this matters Co-selling with Microsoft isn’t simply about being listed on the marketplace—it’s about fundamentally transforming your approach to growth. A strategic co-sell partnership integrates your solution into a dynamic ecosystem, builds trust, and unlocks new avenues for market expansion. At Abnormal Security, our refined approach has set a benchmark for how ISVs can achieve sustainable, long-term success by tapping into the full potential of the Microsoft ecosystem. If you’re ready to discover what it takes to excel in the Microsoft ecosystem and learn from real-world insights, this session is a must-attend. Join us on April 23rd to ask your toughest questions and walk away with actionable strategies that will redefine your co-sell journey. I’ll be answering questions along with Microsoft co-sell subject-matter experts during the session! Don’t miss this exclusive opportunity to transform your co-sell strategy. Register today!Co-sell Coaching: Episode 2, Abnormal Security - AMA
PLEASE NOTE: If you are planning to attend this event, please either use the 'Add to calendar' option below the "Attend" button, or create your own calendar reminder. Clicking attend will not automatically add this event to your calendar, and you will not receive any email notifications reminding you about the event. Join us for Co-sell Coaching, where your peer Microsoft partners will walk you through their best practices on how to co-sell effectively through the marketplace. Our second community event in this series will feature Brett Ferancy, Global Alliance Leader at Abnormal Security. Join to learn: The value of co-selling with Microsoft Proven best Practices for effective co-sell execution Scaling through the marketplace and multiparty private offers (MPOs) Each Co-sell Coaching event features a live Q&A with Microsoft partners and Microsoft subject-matter experts.Microsoft Marketplace Rewards FY26: Partner incentives, Azure sponsorships, and growth strategies
As Microsoft continues to expand its commercial marketplace ecosystem, the Microsoft Marketplace Rewards program introduces powerful new FY26 incentives for software development companies and channel sellers. From Azure sponsorships to co-sell enablement and performance-based marketing benefits, this program is designed to accelerate partner growth and drive cloud solution adoption. In this article, we break down the key updates, eligibility criteria, and strategic actions partners can take to maximize their presence and profitability in the Microsoft commercial marketplace. Marketplace Rewards Overview The Marketplace Rewards program is available to all participants in the Microsoft AI Cloud Partner Program who publish and sell software in the Microsoft Marketplace and now includes channel partners who are enrolled in multiparty private offers (MPO). Whether you are publishing your own solution or reselling third-party offers, the program is structured to recognize and support your contribution to Microsoft’s ecosystem. Rewards are based on Marketplace Billed Sales (MBS) over the trailing 12 months. As performance increases, partners gain access to benefits that enhance visibility, marketing reach, and seller engagement. To get started, software companies should ensure their offers are transactable and channel partners should enroll to sell multiparty private offers. Monitoring performance through the Revenue Dashboard in Partner Center is essential to track progress and unlock benefits. Performance-Based Benefits Marketplace Rewards are tiered based on billed sales, with each level unlocking specific benefits designed to amplify brand visibility and accelerate demand generation. For example, reaching $100K in billed sales qualifies a partner for press release support featuring a Microsoft quote and $10,000 in Azure Sponsorship which can be used to sell future marketplace offers. At $500K, partners can participate in a Marketplace Rewards testimonial. A $1M threshold unlocks the opportunity to publish a partner or customer success story. At $8M, partners gain access to Microsoft seller webinars and Azure sponsorships of $200,000. These benefits are designed to reward high-performing partners and provide strategic marketing and sales support aligned with Microsoft’s go-to-market initiatives. Azure Sponsorships Azure sponsorships offer free Azure usage to customers, helping partners and resellers accelerate deal closure and adoption. These sponsorships are available for EA and PAYG subscriptions only and are not applicable to CSP or MCA agreements. The duration of the sponsorship depends on deal size. Deals under $100K qualify for a 90-day sponsorship, while deals of $100K or more are eligible for 180 days. For deals under three years, the sponsorship amount must not exceed 3% of the Total Contract Value (TCV). To take advantage of this benefit, submit requests using the Azure Sponsorship Submission Form. Co-Sell Enablement Partners and channel sellers who meet co-sell criteria gain access to Microsoft’s global sales force. This includes opportunities to participate in internal webinars and receive direct seller engagement. To qualify, offers must be transactable and correctly tagged in Partner Center. Documentation should clearly articulate the value proposition and include compelling customer success stories. By aligning with Microsoft’s co-sell strategy, partners can significantly expand their reach and accelerate pipeline development. Getting Started To activate Marketplace Rewards and Azure sponsorships, software companies must publish a transactable offer in Microsoft marketplace and channel partners must first enroll in Multiparty Private Offers. Monitoring performance in Partner Center is critical to understanding eligibility and tracking progress. For onboarding support, channel partners are encouraged to contact channelready@microsoft.com. Microsoft’s FY26 Marketplace Rewards program presents a strategic opportunity for software development companies and channel sellers to grow their business, increase visibility, and deepen engagement with Microsoft. By aligning go-to-market strategies with marketplace performance goals, partners can unlock resources that accelerate success. To explore the full program details and hear directly from Microsoft experts, watch the Marketplace Rewards for FY26 – Office Hours RecordingPrioritize your pipeline to sell more with less effort
Not all deals are created equally—some more likely to sell through Marketplace, others more likely to catch a sellers' attention. We'll share how to assess and prioritize your pipeline so you can focus on the deals most likely to convert. Learn: How to spot high-impact deals most likely to close via Marketplace. How to filter out distractions and stop wasting time on low-probability opportunities. How to identify what Microsoft sellers actually care about so your deals get noticed. Aug 13 - 10 AM PST | 1 PM EST ➡️ Learn more and registerCommitment to partner-focused strategies: bringing renewals to the marketplace
Remember, Microsoft offers a 50% reduced agency fee for renewals. This counts for customer opportunities that originated both on and off the marketplace. Off marketplace renewals help bring new business to the marketplace. We’ve created a simple experience for partners to self-attest to the renewal status of a private offer during private offer or multiparty private offer setup (pictured below). By attesting that the deal is a renewal, all transactions against the private offer will automatically receive the 50% discounted agency fee throughout the entire term of the private offer. The reduced agency fee for renewals offers a seamless way to introduce new customers to the marketplace. By adopting the marketplace, partners can co-sell with Microsoft for larger deals. Partners consistently tell us that deals are more substantial when processed through the marketplace rather than outside of marketplace, due to Microsoft seller engagement and the Microsoft Azure Consumption Commitment (MACC) customer benefit. Since we announced the renewal fee discount in October 2024, approximately 50% of renewals are new marketplace customers, helping partners create new and larger customer opportunities and building momentum with Microsoft sellers. With a promise to be partner-focused, Microsoft is committed to maintaining a simple and transparent fee structure: 3% standard fee for transactions across all marketplace offer types. 50% reduced agency fee for customer renewals via private offer. Customers contribute 100% of all marketplace purchases on Azure IP co-sell offers towards their Microsoft Azure Consumption Commitment (MACC), with no limit. As the fiscal year-end approaches, use renewals as a lever to help to close marketplace deals. Remember, private offers must be purchased by the end of May to count towards fiscal year 2025 (July 1, 2025 - June 30, 2026). Bringing renewals to the marketplace is a strategic move that gives customers the benefits of purchasing through the marketplace, while helping you with new co-sell opportunities. Learn more about the 50% discounted agency fee for customer renewals.
