Welcome to the FY26 Q1 Partner Digest!
Stay up to date on the latest Microsoft Marketplace news, tools, and resources to help you grow your business. Subscribe to the Partner Digest label to never miss an update. 🚀 Noteworthy Highlights Introducing Microsoft Marketplace: Growth starts here. Turn your agents and other cloud-based innovations into sales, at scale, with Microsoft Marketplace. Learn more Updated Agreement: The Microsoft AI Cloud Partner Program Agreement has been updated, effective September 22, 2025. Review now Partner Center Security: Multifactor authentication (MFA) is now required for Partner Center access. API enforcement beings April 2026. Learn more App Advisor Enhancements: Six new features help software developers build, publish, and sell apps faster and smarter on the Microsoft Marketplace. Explore now Fabric Extensibility Toolkit: Software companies can help customers bring apps to Fabric, speed development, and integrate workloads. Get started today Azure AI Foundry Updates: Now featuring GPT-5, OpenAI gpt-oss, Foundry Local support, and a new Browser Automation tool to help you build intelligent agents using natural language. Learn more Partner Center AI assistant: Now localized and smarter than ever with support for additional languages, providing quick answers to your day-to-day questions. Learn more Microsoft AI Cloud Partner Program Concierge: Your go-to resource for all program related desk engagements, streamlined and more impactful than ever. Learn more 🌟 Microsoft partner resources: New for FY26 MCAPS Start recap Microsoft kicked off FY26 with a bold vision for partner growth in the AI era. Nicole Dezen outlines how partners can lead with innovation and scale impact. Explore strategic solution areas, expanded MAICPP investments, and GTM support.👉 Read the full post New benefits & resources New AI-powered benefits and tools are here to help partners thrive. Julie Sanford details how to get Azure credits, Copilot seats, and custom GTM materials to accelerate agentic AI adoption.👉 Read the full post Blog Series & Playbooks: Catch up on our Cloud and AI Platforms blog series. Part one: Capturing the market opportunity Part two: Migrations & Modernizations Explore the latest Cloud and AI platforms and Agentic AI partner playbooks which includes key skilling resources, investments, win formulas and more. Unlock your Microsoft AI Cloud potential with Partner Skilling Hub: Visit our skilling hub for the latest training resources to earn designations and specializations. Explore the most recent skilling blog for key skilling-related announcements. Incentives ISV Success Advanced Package: Top-performing partners with Certified Software Designations can qualify for financial incentives to build AI solutions or migrate customers to Azure. The package supports every stage of ISV Success. Learn more. Migration Incentives: New end-customer migration incentives are now available to help software companies and advanced specialized system integrators securely and efficiently move software companies’ end customers to modern applications running on Azure. See Azure Incentives > ISV Engagements tab in the incentive guide for details. 🗓️ Events & Office Hours June-September recaps June: The Microsoft Marketplace Ecosystem Opportunity Explore how AI is reshaping solution development and customer engagement in this conversation with Cyril Belikoff, Microsoft’s new leader for Marketplace. Learn how the marketplace is simplifying procurement and accelerating growth. A “lightbulb moment” for the industry and the critical role partners play in delivering innovation on Microsoft’s platform. 👉 Watch the recording July: Marketplace Rewards FY26 Learn how channel partners can benefit from multiparty private offers and new rewards tier thresholds to unlock $200K in sponsorship. 👉 Watch the recording August: Co-Sell Blueprint & Certified Designations Gain real-world co-sell strategies and learn about Microsoft’s Customer Engagement Methodology from industry experts. Plus, get the latest on Certified Software Designation benefits for FY26. 👉 Watch the recording from Ultimate Partner session on Co-sell 👉 Watch the recording on Certified Software Designations and download the slide deck 📖Explore Microsoft Customer Engagement Methodology (MCEM) September: Migrate and Modernize Summit Our Sep 23-24 event is now available online to help services partners learn how agentic AI can boost their agility by moving to the cloud quickly and effectively. Catch the replay. Upcoming Events Microsoft AI Tour for Partners is back- Join a free, one-day event to accelerate your AI journey with sales best practices, growth opportunities, hands-on labs, and technical deep dives. Discover upcoming events in cities around the globe. Join the Fabric Global Hack (Sept 15–Nov 3, 2025) to build data and AI solutions with Microsoft Fabric, collaborate globally, and compete for prizes up to $10,000. Participants get 50% off Fabric certifications. Join us at the Azure Dev Summit from October 13-15, a Microsoft-sponsored event designed for developers, architects, and technology leaders. Explore the latest in Azure, .NET, and Microsoft AI, gain insights from inspiring speakers, and connect with peers driving innovation. Participate in AgentCon 2025 by Global AI Community—a global series of one-day conferences designed exclusively for developers building the future with autonomous AI agents. 🔥 Microsoft Ignite 2025 Microsoft Ignite 2025 will empower you to get the edge you need to drive impact in the era of AI. Join us in San Francisco or attend virtually from November 18-21 to bolster your knowledge, build connections, and explore emerging technologies. Hear from Microsoft executives and other leaders on their vision for AI. Explore the latest in Cloud and AI platforms, AI business solutions, and Security. Celebrate the winners and finalists of Partner of the Year Awards 👉 ​Register now and stay up to date with event news at Microsoft Ignite Unplugged. __________________________________________________________________________________________________________________________________________________________________ Stay tuned to the ​https://techcommunity.microsoft.com/t5/marketplace-blog/bg-p/MarketplaceBlog for upcoming recaps and new office hour announcements. 💬 Share Your Feedback! We truly appreciate your feedback and want to ensure these Partner Digests deliver the information you need to succeed in the marketplace. If you have any feedback or suggestions on how we can continue to improve the content to best support you, we’d love to hear from you in the comments below!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 Recording
Maximizing success in the Microsoft Marketplace: FY26 strategies for software development companies
Staying competitive in today’s software marketplace requires more than just innovative products, it demands strategic alignment with the platforms and programs that drive visibility, sales, and partner support. Microsoft’s Partner Office Hours, held on August 28, 2025, provided software development companies with a comprehensive overview of the latest updates to the Microsoft Marketplace ecosystem. The session highlighted new investment opportunities, streamlined partner benefits, and actionable guidance for maximizing success through certification, incentives, and collaborative programs. For companies building and selling applications on Microsoft’s platform, these insights are essential for navigating FY26 and beyond. Certified Software Designation: Unlocking the top level of investments from Microsoft Marketplace benefits Microsoft is streamlining access to the top level of investments and benefits partners receive through the Certified Software Designation program. This designation is now the primary pathway for software development companies to access Microsoft incentives, go-to-market support, and differentiation to Microsoft customers and Microsoft sellers. Partners can earn certification in solution areas such as Azure, Business Applications, Modern Work, and Security, as well as in industry AI categories like healthcare, manufacturing, and more. Solutions may be certified in multiple areas, increasing their visibility to customers and Microsoft sellers. Achieving Certified Software Designation enhances discoverability in the Azure Marketplace and unlocks additional benefits, including higher funding tiers, marketing assets, and seller engagement tools. The certification process requires partners to publish a transactable solution, demonstrate customer success, and meet technical requirements for interoperability with Microsoft Cloud. FY26 Partner Incentives: Expanded support for software development companies For fiscal year 2026, Microsoft has significantly increased its investments in partner incentives for the Microsoft Marketplace. The maximum payout for migration and modernization projects has risen from $50,000 to $175,000. New pre-sales incentives are available for architecture and migration planning, and system integrators (SIs) are now eligible for rewards when assisting with customer modernization. Starting January 2026, only certified software partners will be eligible for these incentives, making Certified Software Designation essential for accessing the full range of Microsoft Marketplace support. Marketplace Rewards: Accelerating sales and engagement Marketplace Rewards remain a cornerstone of Microsoft’s partner investment strategy. Any partner with a transactable solution in the Microsoft Marketplace can participate, and those who do typically see seven times more sales than non-participants. High value features include Customer Propensity Scoring, which uses machine learning to help partners prioritize leads most likely to close, and newly expanded Azure Sponsorships. Certified partners can now access up to $1 million in annual Azure sponsorships to help close deals and offset customer costs, with some tiers exclusive to certified partners. Co-Sell benefits: Enhancing collaboration with Microsoft sellers Certified partners can engage in Partner Reported Azure Consumed Revenue (PRACR), incentivizing Microsoft sellers to co-sell partner solutions. This mechanism helps software development companies become involved in more deals and supports sellers in meeting their quotas. From January 2026, only certified partners will be able to report PRACR, making certification essential for maximizing co-sell opportunities in the Microsoft Marketplace. Go-to-market assets: Customizable marketing support for partners Achieving certification unlocks a suite of marketing assets, including a custom video for campaigns, solution battle cards for seller enablement, solution briefs, play cards, badging, logo builder, and certified letters for RFPs. These assets are fully customizable, allowing software development companies to maintain their unique branding while leveraging Microsoft’s marketing resources. Microsoft’s FY26 updates to the Marketplace ecosystem present significant opportunities for software development companies to accelerate growth, improve visibility, and access expanded support. By pursuing Certified Software Designation, engaging with Marketplace Rewards, and leveraging new incentive programs and marketing assets, partners can position themselves for greater success in a rapidly evolving digital landscape. Staying informed and actively participating in community events like Partner Office Hours will ensure that software companies remain at the forefront of innovation and partnership within the Microsoft ecosystem. To learn more and access the full session recording visit: Certified Software Designations: FY26 Benefits Updates | Microsoft Community HubHow 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
Prioritize 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 registerMCAPS Start recap for software development companies
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 hereMCAPS 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 hereAccelerate your growth on Azure Marketplace [French]
Hi everyone, If you’re a French speaker looking to ramp up on Azure Marketplace, join us today at 15:00 CET for a focused, no-fluff webinar. We’ll hit the accelerator from four angles: Fundamentals, fast – a concise refresher to get everyone on the same page Co-sell the Microsoft way – practical examples that actually land deals Resell like BeCloud – tactics for turning Marketplace listings into revenue Archera’s best practices – proven plays you can put to work tomorrow Cut the guesswork—come ready to level up. Registrations: https://events.teams.microsoft.com/event/fa1f174d-6e04-4dcd-8eb7-cf95ea0d1ac9@cc399a02-f38a-4820-a991-894e8c59d676.Lock 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-FAQsGet co-sell ready with enablement, executive alignment, and cross-functional collaboration
Is your Organization Co-Sell Ready? So many of us have heard about the value that a strong co-sell GTM motion can have as part of your scaling strategy. After all, the opportunity – represented by many dollar signs - to tap into the hyperscaler ecosystem is hard to ignore. Numerous experts have published great, data-infused content quantifying this opportunity, and because these folks have already done this hard work - I don’t have much to add there. But is your organization truly ready to execute and realize any of this value? That’s where I can help - having built one very successful co-sell program with Microsoft (and one that was not so successful). Standing up a co-sell program will likely require challenging existing norms within your business. It's not just about having a great product or being listed on Azure Marketplace; it's about activating every part of the business in coordination. This may be entirely new and unfamiliar for your finance team, deal desk, sellers and even your customers. For simplicity's sake, I am closely associating co-sell with the ability to sell through Marketplace. Over the past few years, Marketplace has grown in importance for Microsoft, much like it has for many of the fastest scaling companies in the world - just look at Wiz. These questions - while not exhaustive - will help you think ahead, identify potential gaps, and assess your organizational readiness to build your best-fit co-sell strategy: Overall Strategy Is high growth or ensuring profitability the larger goal? Are you going after sales-led Enterprise customers or a PLG (product-led growth) motion? Do you have a clearly defined partnership strategy and line of reporting? How much of the business value is cemented by services vs SaaS? Product & Technology Is your product built on Microsoft’s technology stack and if so, what solutions? What is the sign-up & implementation workflow for new customers? What runs on Azure, and is this running on your tenants, the customer’s tenant, or a hybrid set up? How open is your product organization to sharing the product roadmap? Legal & Privacy & Compliance What does your contracting process look like? Are you open to using Microsoft’s standard marketplace terms and conditions? What does an ordinary infosec / privacy review look like for your customers? What legal requirements are critical for your product’s functionality- and does this align with what is contained in a standard marketplace T&C? Finance What are your booking rules and requirements? What is the margin on your product? How and when are your sales reps compensated – (e.g., are you comp neutral)? What is your stance and capability to offer spiffs to your sellers? Operations (Sales and otherwise) How are you operationalizing lead sharing, and who owns this? What does your CRM hygiene and sales cycle look like? What does the process from quote-to-proposal look like? How and where would Marketplace purchases fit into your existing sales process? Sales / Revenue / Customer Success What are you selling, and to whom? How comfortable are your customers with Marketplace? Are your sellers experienced in co-selling with other partners and do your sellers have clear expectations for what they can gain through co-sell? What about the channel - how do reseller motions and referrals fit in? Marketing Do you already have great materials packaged for partners and customers? Are you verticalized in your marketing & messaging approach? Do you have a dedicated partner marketing function? Are you delivering thought leadership on key verticals and solution areas - and if so, how does this align to Microsoft’s highest priority topics? A couple of closing thoughts: You’ll need to align and collaborate with more teams than you might think - because this may represent a significant change. Change is even harder when people don’t understand how it impacts them, and the people needed to make it happen. Gain support by building a clear strategy and setting clear expectations of what to expect from month-1, month-12, month-18 and beyond. You need to establish what "good looks like" and be prepared to back this up with data. It takes a village to raise a GTM strategy. Thinking ahead will help you prevent something that is unfamiliar from becoming something that is uncomfortable. Learn more If you're interested in learning strategies for building your co-sell approach, I invite you to join me on June 18 to hear tips and insights from our experience creating a successful co-sell program—including common pitfalls to avoid. You can register here. ___________________________________________________________________________________________________ Mike Marzano leads global cloud, data, and platform alliances for the Experience Intelligence Platform, Contentsquare. Over the past three years, he has built and scaled Contentsquare’s Microsoft co-sell and marketplace motion from the ground up—driving over $40 million in billed revenue through Marketplace and high-impact field alignment. A member of the Microsoft Retail Partner Advisory Council, Mike brings two decades of enterprise SaaS experience to his work, combining sharp execution with a deep understanding of how to unlock customer value through co-sell and Marketplace programs. He lives in New York City with his wife and 2yr old son. Contentsquare is a leader in digital analytics, empowering businesses of all sizes with the insights they need to understand customers and deliver seamless experiences at scale. Its all-in-one experience intelligence platform provides rich and contextual insight into customer behaviors, sentiment, and intent, across all channels, helping businesses continuously deliver the right experience on web, mobile, and apps. More than 1.3M websites worldwide rely on Contentsquare’s AI-powered platform to grow their business, drive customer loyalty, and operate with greater efficiency in a constantly changing world. To learn more, visit www.contentsquare.com
