AI agents on Microsoft Fabric for faster retail merchandising decisions
For our latest in the Partner Spotlight series, we’re highlighting a partner building business-ready AI agents on Microsoft Fabric, so organizations can turn governed enterprise data into faster decisions and automated workflows. I connected with the team at Lucid Data Hub to learn how Lucid Agents Hub brings agentic experiences directly to customers’ data in OneLake, helping retail teams move beyond manual reporting and into repeatable, insight-driven action. About Venu Amancha, Founder & CEO, Lucid Data Hub builds business-ready AI agents that run directly on enterprise data within Microsoft Fabric. Our platform, Lucid Agents Hub, enables organizations to move beyond reporting and into automated, insight-driven workflows without moving data outside their existing security boundaries. _______________________________________________________________________________________________________________________________________________________________ [JR] Who is your solution designed for, and what does it help them do? [VA] Lucid Agents Hub is designed for teams who need to make frequent, high-impact decisions from large volumes of operational data especially merchandising teams, buyers, and store operations leaders in retail. Instead of spending hours assembling recaps and interpreting dashboards, they can receive agent-generated insights and clear, actionable recommendations on a predictable cadence. The AI agent eliminated that manual cycle entirely. It now surfaces those insights automatically, every week, in minutes. One example is our Retail Sales Performance AI Agent, which automates the weekly sales insights cycle for merchandising teams and buyers by analyzing millions of rows of weekly sales, item, and store data across banners and store clusters. [JR] Can you give an example of how the Retail Sales Performance AI Agent solved a customer’s problem? [VA] At Heritage Grocers Group, merchandising teams spent 5+ hours every week manually building sales recaps. They could see what happened—but not why. Buyers lacked a clear view of category trends, item-level performance, quantity shifts, and store-cluster patterns. The Retail Sales Performance AI Agent eliminated that manual cycle. It now surfaces those insights automatically every week in minutes detecting item-level declines, identifying fast-moving margin-positive SKUs, flagging underperforming items by store cluster, and delivering recommendations directly to buyers and store managers. [JR] Which Microsoft technologies or services are foundational to what you’re building? [VA] The solution runs natively on Microsoft Fabric, using OneLake as the unified data layer. Our agents operate directly on enterprise data and inherit existing governance and access controls without additional configuration. Outputs flow into the dashboards, collaboration platforms, and reporting workflows customers already use, so insights show up where decisions get made. Microsoft Fabric was a deliberate choice, not just a default. Our enterprise customers especially in retail already have their critical data living in the Microsoft ecosystem. OneLake means there’s a single, governed copy of that data. No duplication, no movement, no additional risk surface. Our agents read directly from that layer, which means the security and compliance boundaries that customers have already invested in carry over automatically. The value of building on Fabric goes beyond the technical architecture. It fundamentally changes how enterprise buyers evaluate and procure a solution like ours. When IT and security teams see that agents operate entirely within their existing Fabric environment with role-based access controls, workspace permissions, and audit logs they already control. It removes the largest barrier to enterprise adoption: trust. Procurement conversations that used to require months of security review cycles are now dramatically faster. What we didn’t fully anticipate was how much Fabric’s native integration capabilities would simplify end-to-end delivery. Going in, we expected to spend significant engineering time on data pipeline infrastructure. What we found instead was that Fabric’s data ingestion, lakehouse, and compute layers fit together in a way that let our team focus almost entirely on agent logic and business outcomes, not infrastructure plumbing. That shift in where we spend our effort has meaningfully accelerated how quickly we can deploy for new customers and extend to new use cases. [JR] How are you using AI today in Lucid Agents Hub, and what business outcomes have customers seen? [VA] We use Microsoft Azure AI Foundry for core AI and language model capabilities, and Microsoft Fabric Copilot (Fabric IQ) as the data and compute backbone. Together, they power agents that analyze weekly sales data across banners and store clusters, generate narrative-quality insights at the category and SKU level, and deliver clear recommendations without human intervention in the analysis cycle. 5+ hours of weekly manual effort eliminated Item-level sales declines and fast-moving margin-positive SKUs surfaced automatically Top-growth categories and underperforming items identified by store cluster Recommendations delivered directly to buyers and store managers weekly This all leads to faster decisions, stronger merchandising actions, and measurable improvements in product mix, availability, and overall sales performance. [JR] Any architectural decisions or best practices you’d recommend to other partners building agents? How did you approach building securely? [VA] We designed the solution as a coordinated set of specialized agents one for data ingestion, one for validation, and one for insight generation and delivery. Each agent owns a focused task, and together they run as a connected, end-to-end workflow. This makes the system easier to maintain, consistent in its logic, and straightforward to extend to new banners, categories, or use cases. Agents run entirely within the customer’s Microsoft Fabric environment data never leaves the customer’s security perimeter. All access controls, role-based permissions, and governance policies are inherited directly from Fabric. [JR] What motivated you to publish on Microsoft Marketplace? And did you use any Microsoft tools or benefits to support your publishing process? [VA] Publishing on Microsoft Marketplace was a straightforward decision. It gives enterprise customers immediate confidence that they’re procuring from a trusted, Microsoft-validated source instead of navigating a separate vendor relationship. It also simplifies procurement transactions run through an established Microsoft channel; so, customers can move faster than in traditional sales cycles. And it expands our reach to buyers already operating in the Microsoft ecosystem who actively look to Marketplace for solutions. We actively use Marketplace Rewards, which has been valuable for amplifying go-to-market efforts and accessing Microsoft co-marketing resources. We also leverage AI-enabled Marketplace Listing Optimization and related Marketplace content guidance provided through Marketplace Rewards. We used this support primarily to improve our marketplace messaging, positioning, and listing content so it would better resonate with enterprise buyers evaluating solutions within the Microsoft ecosystem. [JR] What key takeaways would you share with other partners building and publishing agents? Any unexpected wins or challenges along the way? [VA] Building and publishing agents can be a complicated endeavor. To other partners, we’d say, start with workflows that are repetitive and directly tied to decisions weekly merchandising recaps are a perfect example. Think end-to-end, not task by task. And build on governed enterprise data from the start, because that’s what drives trust and adoption. An unexpected win was how quickly merchandising teams adapted. Receiving plain-language summaries broken down by banner, store cluster, category, and SKU was more accessible than navigating dashboards. Teams made faster, more confident decisions without needing to interpret raw data themselves. _______________________________________________________________________________________________________________________________________________________________ Closing reflection Lucid Data Hub shows how agents built on Microsoft Fabric can turn governed enterprise data into repeatable, decision-ready insight helping teams act faster while keeping security boundaries and access controls intact.Optimizing Azure spend with Microsoft Marketplace
As someone deeply involved with Microsoft Marketplace product marketing team, I was excited to host our recent customer office hour session with Trunal Bhanse, CEO of Clazar. Our conversation focused on using Microsoft Marketplace to optimize Azure spend. The session explored how organizations can leverage Marketplace as a strategic procurement engine and maximize their cloud investments. Setting the stage: Marketplace as a growth engine Every organization today is striving to become a frontier firm—enriching employee experiences, reinventing customer engagement, and reshaping business processes. With AI at the center of transformation, the question often arises: should we build or buy AI solutions? If buying, how do we procure them efficiently and securely? That’s where Microsoft Marketplace comes in. It’s your trusted source for cloud solutions, AI apps, and agents, offering the largest catalog in the industry. Marketplace is fully integrated with Microsoft Cloud, providing a seamless experience from discovery to deployment. Whether you need standard contracts, private offers, or multi-year agreements, Marketplace adapts to your procurement needs and ensures your transactions are visible in the Azure cost management portal. Azure spend optimization: The power of Microsoft Azure Consumption Commitment (MACC) A major focus of our session was the Microsoft Azure Consumption Commitment (MACC). This agreement allows organizations to commit to a certain level of Azure consumption in exchange for discounted rates. The beauty of MACC is that eligible Marketplace transactions decrement your commitment dollar-for-dollar. That means when you purchase MACC-eligible solutions through Marketplace, you’re directly funding your cloud investments and maximizing your discounts. Our conversation covered how to identify MACC-eligible solutions using tools like Azure Marketplace Compass, the Azure portal, and Marketplace storefront. With over 4,000 eligible solutions available, most organizations can find the software they need and align it with their MACC commitments. This approach is especially valuable at fiscal year-end or when budgets are tight, allowing you to leverage your commitment for critical investments. Operationalizing Marketplace procurement To truly optimize spend companies should start with an inventory of all solutions currently deployed or planned for procurement across their organization. By mapping this inventory against MACC-eligible offers, they can ensure every purchase maximizes commitment and discounts. Security and governance are also paramount. Marketplace enables role-based access controls and private marketplaces, so only authorized employees can procure approved applications. This walled-garden approach gives administrators full control over what’s available for procurement. Partner solutions and automation To bring the MACC optimization process to life, Clazar provided a live demonstration of their platform which specializes in automation of this process. Their solution enables organizations to seamlessly match their software inventory against MACC-eligible offers, giving procurement and finance teams consolidated visibility into spend and streamlining the entire procurement workflow. With robust integrations for single sign-on-systems and automated dashboards, Clazar empowers customers to instantly identify eligible applications and make faster, more informed decisions about their Azure Marketplace investments Microsoft Marketplace is more than a procurement platform—it’s a strategic lever for optimizing Azure spend, accelerating innovation, and simplifying operations. By aligning purchases with MACC commitments, organizations unlock savings, streamline processes, and gain unparalleled visibility into their cloud investments. To learn more, watch the full recording of our conversation here: Using Microsoft Marketplace to optimize Azure spend - Microsoft Marketplace Community Resources Microsoft Marketplace: Microsoft Marketplace | cloud solutions, AI apps, and agents Azure Consumption Commitment (MACC) benefit: Azure Consumption Commitment Benefit - Marketplace customer documentation | Microsoft Learn Cost management for Microsoft Marketplace purchases: Cost management for Microsoft Marketplace purchases - Marketplace customer documentation | Microsoft LearnMicrosoft Marketplace 101: Insights from high performing software development company sellers
Microsoft Marketplace is probably the one topic that can give 'AI' a run for its money in terms of the number of mentions on LinkedIn, on cloud hyperscaler blogs, and in Partner Ecosystem presentations. But ask the average SaaS seller what a marketplace is, and you’ll probably get a different answer every time. That’s because marketplaces have become more than just a listing catalog, it’s now a pervasive commerce platform across the entire B2B Software purchase process. Jay McBain @ Omdia described Cloud Marketplaces as the "epicenter of partnerships, co-selling and co-innovation” and we see that play out at Microsoft. The combination of Microsoft's co-sell model and Microsoft Marketplace has created the platform for modern procurement and modern partnerships. Today, Microsoft Marketplace: Impacts all personas and incentives – from customers commercial incentives, to software company program sale incentives, channel partner benefits, and hyperscaler seller compensation models Enhances B2B purchase processes for customers – Streamlining supplier onboarding, to internal FinOps, to governance and guardrails on purchasing Brings agility to the sales process for software companies and channel partners – from pricing and quoting, budget allocation, billing & payments, right through to co-selling and go-to-market. With this level of impact, it’s not surprising that Microsoft Marketplace represents a significant growth opportunity for software companies. Customers are increasingly transacting through Marketplace as they align Azure commitments with third-party software purchases and adopt a more “marketplace-first” procurement approach. Research shows 69% of partners report larger deals and 75% close deals faster (Omdia), reinforcing the role of Marketplace as a strategic channel for enterprise software procurement. So, if you are a seller at a Microsoft SaaS software company and you want to take advantage of this opportunity, here are my five top learnings for high performance software sellers! This article assumes you are running your SaaS software platform on Microsoft Azure and you are already transactable in Marketplace. If you aren't, there are plenty of great resources for software companies to help get you there, and I have summarized them here: New Software Company Partner Guide. LEARNING 1 - Understand the customer benefits of Microsoft Marketplace and weave it into your customer proposal: This is about understanding the bigger picture of Marketplace for Microsoft customers, as the benefits go way beyond an individual transaction. The average enterprise is managing over 600 applications (Source - Zylo) and >60% of these applications being purchased outside of IT. Marketplace is a great way for customers to scale and bring efficiency across their B2B Software estate, giving them: Rapid access (find, try, buy) to software and AI innovation they need to run their business, Governance and guardrails for each purchase – so you are never compromising control and compliance. Streamlined procurement – onboarding suppliers in minutes using their Microsoft Agreement, invoicing and payment terms, Improved cloud economics – aligning the cloud consumption with your software company spend can unlock additional P&L impacting benefits, If you need to get up to speed on these aspects, check out: Microsoft Marketplace 101 - Top Customer Questions. LEARNING 2 - Understand how Microsoft partners can help you scale and close customer opportunities: Microsoft has always been a partner led organization. Today we have 500,000 partners globally ranging from a small start-up in a garage, to the largest Global Systems Integrator. These partners play different roles in our customers helping them transform and compete in the AI era through Microsoft Cloud & AI technologies. The great news for you is that we have empowered Microsoft channel partners and sales partners to sell Marketplace solutions. So, think about how you can use channel partners to (i). expand your reach, (ii). drive new opportunities or (iii). accelerate deal closure. We have a range of different models to support your channel led motions in our customers, including: Multi-party private offers (MPO) - Partner led sales agents for individual transactions. Resale enabled offers (REO) - Nominated and enabled partner representative by geo. Cloud solution provider (CSP) resellers - to scale into SMB/Corporate Accounts via a managed service provider For each opportunity, understand who the incumbent Microsoft partner is, and how you can use these mechanisms to accelerate your deal. Or better still, if you are looking to explore a more proactive partnership, check out the 1000s of Partners that are building Marketplace practices to support customers and software companies. Examples include Bytes, Softcat, CDW, Trustmarque, Crayon, Computacenter etc. LEARNING 3 - Accelerate your deal closure by including Microsoft programs and incentives into your customer proposal: Here are the most commonly used accelerators used by software company sellers to close deals: If you are marketplace transactable: Marketplace Rewards - Azure Sponsorship Credits - A performance related benefit that provides up to $400k in Azure Sponsorship Credits. These credits can be used as a deal sweetener with your Marketplace transaction and passed on to the customer for consumption. Up to 40% of transactions involve these credits today. If you are IP co-sell ready: Azure Benefit Eligible - This enables customers to decrement their Microsoft Azure Consumption Commitments (MACC) with eligible Marketplace purchases. By aligning their cloud consumption with their software company spend, it can unlock additional P&L impacting benefits. More than 85% of MACC customers buy via Marketplace. Microsoft IP co-sell incentive - This enables Microsoft sellers to get paid on the license value sold via Microsoft Marketplace. It also allows eligible Marketplace transactions to contribute to retiring Microsoft seller quota, helping accelerate deal alignment between partners and Microsoft field teams. If you have a Certified Software Designation (CSD): Marketplace Rewards - Azure Sponsorship Credits - If you come CSD Certified, Microsoft extends this benefit to $1M. These credits can be used as a deal sweetener with your Marketplace transaction and passed on to the customer for consumption. Customer Migrate & Modernize Incentive - This partner incentive is used to drive migrations to Microsoft Azure. Cash incentives vary based project size, but Microsoft will pay up to $200k per opportunity for NEW customer migrations to Microsoft Azure. High-performing software companies and sellers will combine these incentives into their proposals to help drive customer acquisition success. LEARNING 4 - Know your Microsoft customer Three things I urge every software company Seller to do as part of their Marketplace and co-sell conversations: Know your customer 1 - Understand the customer's Marketplace Propensity Score to help prioritize your opportunities Marketplace Propensity Scoring (combined with your co-Sell conversations) has proven a powerful tool for prioritizing pipeline and accelerating sales cycles. Offered as a Marketplace Rewards benefit, propensity scoring provides you with a score that ranks your pipeline prospects by their likelihood (0 to 100) to transact through Marketplace. The score is based on a number of factors including their commercials, existing spend and transaction volumes, relationship metrics etc. Access the benefit at: Microsoft Marketplace Rewards Know your customer 2 - Enable more tailored offers for customers by updating your MEDDIC, MEDDPICC or BANT qualification questions with these Marketplace qualifiers: Are they a Microsoft customer? This means they have agreed Microsoft terms and conditions to enable Marketplace transactions. Are they a Managed Microsoft Customer? This opens up the possibility of selling with Microsoft. What Microsoft segment/industry are they in? This opens up sales play alignment, industry go-to-market etc. How do they buy Microsoft Azure today? This helps navigate potential commercials, incentives and programs, purchase routes and the role of channel partners. Does the customer have a Microsoft Azure Consumption Commitment (MACC)? This could unlock the MACC benefit of Azure Benefit Eligible which allows customers to decrement marketplace purchases. What is the status of their Microsoft Azure Consumption Commitment (MACC)? Are they ahead or behind of their consumption commitment? Is it coming up for renewal? This is all about getting access to planned Azure budgets at the right time. Is there an incumbent Microsoft partner in the customer and what role do they play? It is forecasted that 60% of ALL marketplace sales will involve a channel partner, so get them involved early in the process. Know Your Customer 3 - Use the Partner Center referral process to engage incentivized Microsoft sellers and gain customer intelligence: Submitting your referrals via Partner Center will enable you to engage incentivized Microsoft sellers directly. For most Microsoft sellers, Microsoft Marketplace and co-sell deals are critical for how they will make their Azure quota. Help could include: Navigate and increase your visibility with the customer's buyers Gain insights on the customer's Azure commitments, Understand the partner landscape in the customer Potentially find ways to combine sales motions to drive bigger/better outcomes for all. Build this discipline with every opportunity is a key characteristic of a high-performance software company seller. LEARNING 5 - Celebrate and amplify Microsoft co-sell/Marketplace success The best Microsoft Marketplace and co-sell partners treat Microsoft as a customer. They market to the Microsoft sales and go-to-market teams the success they are driving, which in turn is driving further engagement and activity. Work with your aligned Microsoft Partner Development Manager to create a regular drumbeat of communication or use your Marketplace Rewards GTM benefits to amplify your success with the Microsoft sales teams. Need more help? Speak to your Partner Development Manager or aligned engagement manager Check out App Advisor for a guided experience on the journey for software development companies. Let me know your feedback or if you have any additional recommendations. Thanks Lee Corbett - EMEA ISV Recruit & Grow LeadHow manufacturers can scale AI from pilot to production with Microsoft Marketplace
Manufacturers are under unprecedented pressure. Labor constraints, rising costs, shifting supply chains, and growing demand are all colliding at once—and expectations for AI to help address these challenges have never been higher. But as many organizations are discovering, interest in AI does not automatically translate into operational impact. In a recent Microsoft Marketplace customer office hour, Microsoft explored what it takes to move AI initiatives in manufacturing beyond pilots—and how Microsoft Marketplace can help organizations scale AI in a governed, practical way. Below are the key takeaways manufacturing leaders should consider as they chart their AI strategy. Why AI scaling is the biggest challenge in manufacturing Across conversations with manufacturing customers, several challenges consistently emerge: Factory and operational data remain highly fragmented Integrating edge and cloud systems introduces significant complexity AI ambition often outpaces integration readiness, cost controls, and operational maturity The result is a familiar pattern: AI pilots that demonstrate promise but never reach production. In fact, more than half of manufacturers are still operating AI initiatives in pilot mode. The problem is not whether AI works. The real challenge is how to scale AI in a way that is sustainable, secure, and governed. In many cases, the issue is not model performance, but the architectural and operational complexity required to deploy AI across multiple plants and production environments. Without the right data foundation and deployment model, even successful pilots remain isolated experiments rather than scalable operational capabilities. The unified data foundation: The backbone of industrial AI One of the most important lessons from the session is simple: AI models alone do not create value. AI delivers real impact when it is grounded in connected, high‑quality data across manufacturing systems, including: ERP systems Manufacturing execution systems (MES) Maintenance and asset management platforms IoT sensors and historians Documents, logs, and frontline operator knowledge This unified data foundation breaks down operational silos and enables analytics, digital twins, and AI agents to operate at scale. Without it, AI initiatives struggle to move beyond isolated use cases and proof‑of‑concept projects. This foundation enables manufacturers to transition from insight‑generation to decision‑making—unlocking the ability for AI agents to act on operational context in real time rather than simply producing analytical outputs. How edge and cloud AI work together in manufacturing A successful industrial AI strategy does not force a choice between edge or cloud—they are complementary. Edge intelligence enables real-time inference and low‑latency decisions close to machines Cloud intelligence supports advanced analytics, cross plant insights, digital twins, and large‑scale reasoning When connected through a governed data foundation, edge and cloud work together to drive continuous improvement across manufacturing operations. This architectural approach enables manufacturers to run latency‑sensitive inference close to equipment at the edge, while scaling analytics, simulation, and optimization in the cloud across plants. Designing AI solutions that leverage both environments is often critical to achieving operational impact without disrupting production workflows. Microsoft Marketplace spans these layers, offering access to vetted AI models, agents, applications, and connectors that deploy directly into Azure environments with built-in governance and cost control. Real world manufacturing AI use cases driving measurable impact Several high impact scenarios illustrate where AI is already delivering value in manufacturing today. Predictive maintenance: Reducing downtime with AI Predictive maintenance sits at the intersection of machine telemetry, historical failure data, maintenance logs, inspection notes, and operator expertise. By blending internal telemetry with proven industry models—and deploying analytics at the edge when required—manufacturers can reduce unplanned downtime without rebuilding maintenance systems from scratch. By combining unstructured plant knowledge with real‑time telemetry, predictive maintenance becomes one of the fastest paths for manufacturers to realize measurable ROI from AI investments. Production optimization: Improving yield and throughput Production optimization focuses on identifying bottlenecks, reducing yield loss, and improving throughput. This requires combining process data with AI reasoning to understand where inefficiencies exist and what corrective actions to take. Once value is proven on a single line or plant, solutions can be scaled using reusable components across the organization. When deployed successfully, these solutions can be extended across lines and facilities using reusable components, enabling continuous improvement at scale. Frontline enablement: Scaling knowledge with AI agents Manufacturing organizations often struggle with training, onboarding, and knowledge retention. AI agents can deliver task specific guidance directly to frontline workers, reducing reliance on tribal knowledge while improving safety, productivity, and training outcomes. This approach helps close the gap between experienced and newer workers by making operational expertise accessible at the point of need. Build, buy, or blend: Choosing the right AI adoption path There is no one size fits all approach to AI adoption. Manufacturing leaders must balance control, speed, and cost when deciding how to move forward. Build offers maximum customization and differentiation, but requires time, specialized skills, and higher upfront investment Buy enables faster deployment with proven, pre‑vetted solutions and predictable costs Blend combines internal IP with partner solutions, offering flexibility and faster time to value Microsoft Marketplace supports all three paths, helping organizations discover solutions, simplify procurement, and maintain governance—whether deploying directly, working with partners, or leveraging private offers and private marketplaces. For many manufacturing scenarios, a blended approach is often the most practical, allowing organizations to retain differentiation in proprietary processes while accelerating time‑to‑value through proven partner solutions available in Marketplace. How Microsoft Marketplace helps manufacturers scale AI securely For manufacturing customers, Microsoft Marketplace serves as a trusted source of cloud and AI solutions across industries and use cases. Marketplace enables organizations to: Discover vetted AI applications, agents, and models Deploy solutions directly into Azure environments Maintain governance, security, and cost control Accelerate procurement and reduce vendor onboarding friction Support build, buy, and blend strategies through a single platform This approach helps manufacturers move faster while retaining operational and financial control. By deploying solutions within existing Azure environments, Marketplace helps ensure that identity, access controls, and cost governance remain aligned with enterprise policies as AI initiatives scale. How to avoid getting stuck in AI pilot mode To move AI from experimentation to production, manufacturers should start with: One high impact operational scenario Data that is accessible, governed, and connected across IT and OT systems A clear decision on what to build, buy, or blend Using proven components available through Microsoft Marketplace can reduce integration complexity, procurement delays, and governance friction, —allowing manufacturers to focus engineering effort on differentiated capabilities rather than rebuilding common AI functionality. Operationalizing Industrial AI at Scale As manufacturers move from experimentation to execution, the ability to scale AI responsibly across operations will become a defining competitive advantage. Achieving that scale requires more than deploying models—it depends on connecting data across systems, aligning AI to real operational scenarios, and making deliberate decisions about what to build, buy, or blend. Microsoft Marketplace helps accelerate this journey by reducing integration complexity, procurement delays, and governance friction—allowing organizations to move from pilot to production while focusing engineering effort on the capabilities that truly differentiate their business. Watch the on‑demand session: Charting your AI strategy for manufacturing with Marketplace to learn more about how to scale AI securely and strategically across your manufacturing operations and move AI initiatives from pilots to real operational impact diving deeper into architectures, decision frameworks, and real-world scenarios.Seamless Marketplace private offers: creation to customer use
Private offers are a core mechanism for bringing negotiated commercial terms into Microsoft Marketplace. They allow publishers and channel partners to offer negotiated pricing, flexible billing structures, and custom terms; while enabling customers to purchase through the same Microsoft governed procurement, billing, and subscription experience they already use for Azure purchases. As Marketplace adoption grows, private offers increasingly involve channel partners, including resellers, system integrators, and Cloud Solution Providers. While commercial relationships vary, the Marketplace lifecycle remains consistent. Understanding that lifecycle—and where responsibilities differ by selling model—is essential to executing private offers efficiently and at scale. Join us April 15 for Marketplace Partner Office Hours, where Microsoft Marketplace experts Stephanie Brice and Christine Brown walk through how to execute private offers end to end—from creation to customer purchase and activation—across direct and partner‑led selling models. The session will include a live demonstration and Q&A, with practical guidance on flexible billing, channel scenarios, and common pitfalls. This article walks through the private offer lifecycle to help partners establish a clear, repeatable operating model to successfully transact in Microsoft Marketplace. Why private offers are structured the way they are Private offers are designed to align with how enterprise customers already procure software through Microsoft. Customers purchase through governed billing accounts, defined Azure role-based access control (RBAC) enforced roles, and Azure subscriptions that support cost management and compliance. Rather than bypassing these controls, private offers integrate negotiated deals directly into Microsoft Marketplace. This allows customers to: Apply purchases to existing Microsoft agreements (Microsoft Customer Agreement (MCA) or Enterprise Agreement (EA)) Preserve internal approval workflows Manage Marketplace subscriptions alongside other Azure resources Private offers also support flexible billing schedules. This is especially important for enterprise customers managing budget cycles, approvals, and cash flow. Flexible billing allows partners to align charges to agreed timelines—such as billing on a specific day of the month or spreading payments across defined milestones—while still transacting through Microsoft Marketplace. Customers can align Marketplace charges with internal finance processes without requiring separate contracts or off‑platform invoicing. For publishers and partners, this design creates a predictable lifecycle that scales across direct and channel‑led motions. Each stage exists for a specific reason and understanding that intent helps reduce delays and rework. Learn more: Private offers overview One lifecycle, multiple selling models All private offers—regardless of selling model—follow the same three stages: Creation of a private offer based on a publicly transactable Marketplace offer Acceptance, purchase, and configuration of the private offer Activation or deployment, based on how the solution is delivered What varies by model is who creates the offer, who sets margin, and who owns the customer relationship—not how Microsoft Marketplace processes the transaction. 1. Creation: Starting with a transactable public offer Every private offer begins with a publicly transactable Marketplace offer enabled for Sell through Microsoft. Private offers inherit the structure, pricing model, and delivery architecture of that public offer and its associated plan. If a public offer is listed as Contact me or otherwise non‑transactable, it must be updated before any private offers—direct to customer or channel‑led—can be created. Creation flows by selling model: Customer private offers (CPO) The publisher creates a private offer in Partner Center for a specific customer, based on the Azure subscription (Customer Azure Billing ID) provided by the customer. The publisher defines negotiated pricing, duration, billing terms (including any flexible billing schedule), and custom conditions. Multiparty private offers (MPO) The publisher creates a private offer in Partner Center and extends it to a specific channel partner. The partner adds margin and completes the offer before sending it to the customer. Resale enabled offers (REO) The publisher authorizes a channel partner in Partner Center to resell a publicly transactable Marketplace offer. Once authorized, the channel partner can independently create private offers for customers without publisher involvement in each deal. Cloud Solution Provider (CSP) private offers A CSP hosts the customer’s Azure environment (typically for SMB customers) and acts on behalf of the customer. The publisher creates a private offer in Partner Center for a CSP partner, extending margin so the CSP can sell the solution to customers through the CSP motion. In all cases, the private offer remains anchored to the same underlying public Marketplace offer. 2. Acceptance and purchase: What happens in Marketplace Microsoft Marketplace provides a consistent purchasing experience while supporting different partner‑led models behind the scenes. Customer private offer, multiparty private offer, resale enabled private offer For these models, the customer experience is the same and includes three steps: Accepting the private offer The customer accepts the negotiated terms (price, duration, custom terms) in Azure portal. This is the legal acceptance step under the customer’s MCA or EA. Purchasing or subscribing The customer associates the offer to the appropriate billing account and Azure subscription. This enables billing and fulfillment. Configuring the solution After subscription, the customer is redirected to the partner’s landing page. This step connects the Marketplace purchase to the partner’s system, enabling provisioning, subscription activation, and setup. Learn more: Accept the private offer Purchase and subscribe to the private offer In large enterprises, acceptance and purchase are often completed by different roles, supporting governance and auditability. CSP private offers In the CSP model, the CSP partner—not the end customer—accepts and purchases the private offer on the customer’s behalf. Microsoft invoices the CSP partner, and the CSP bills the end customer under their existing CSP relationship. Key distinctions: The end customer does not interact with the Marketplace private offer CSP private offers do not decrement customer Microsoft Azure Consumption Commitment (MACC) because there is no MACC in the CSP agreement Customer pricing and billing occur outside Marketplace Learn more: ISV to CSP private offers 3. Activation or deployment: Defined by delivery model, not selling motion Activation or deployment is determined by how the solution is built, not whether the deal is direct to customer or channel‑led. SaaS offers The solution runs in the publisher’s environment. After subscription, activation occurs through the SaaS fulfillment process, typically involving customer onboarding or account configuration. No Azure resources are deployed into the customer’s tenant. Deployable offer types (virtual machines, containers, Azure managed applications) The solution runs in the customer’s Azure tenant. Deployment provisions resources into the selected Azure subscription according to the offer’s architecture. Channel partners may support onboarding or deployment, but Marketplace activation or deployment reflects the technical delivery model—not the commercial route. Setting expectations that scale Successful partners set expectations early by separating commercial steps from technical activation: The customer transacts under an Enterprise Agreement (EA) or Microsoft Customer Agreement (MCA) The private offer includes custom pricing and any flexible billing schedule based on the publicly transactable offer The customer accepts negotiated terms in Microsoft Marketplace The purchase and subscribe steps associate the offer to the billing account and Azure subscription, the configure step triggers the notification to activate or deploy the solution for customer use Billing starts based on SaaS fulfillment or Azure resource deployment Choosing the right model While the lifecycle is consistent, each model supports different strategies: Customer private offers allow the publisher to negotiate terms directly with the customer Multiparty private offers enable close channel collaboration while sharing margin Resale enabled offers support scale by empowering channel partners to transact independently CSP private offers align with customer segments led with this motion The right choice depends on partner strategy, not on how Marketplace processes the transaction. Learn more: Transacting on Microsoft Marketplace Bringing it all together Private offers turn negotiated agreements into scalable, governed transactions inside Microsoft Marketplace. Regardless of whether a deal is direct or channel‑led, the underlying lifecycle remains the same, rooted in a transactable public offer, executed through Microsoft‑managed purchasing, and activated based on how the solution is delivered. By understanding that lifecycle and intentionally choosing the right direct or channel model and billing structure, partners can reduce friction, set clearer expectations, and scale Marketplace transactions with confidence. When aligned correctly, private offers become more than a deal construct; they become a repeatable operating model for Marketplace growth.Cloud cost optimization and performance in a transition to AI-first
AI is reshaping how organizations build, deploy, and scale technology—and it is dramatically changing how cloud investments are evaluated. As AI workloads increase cloud consumption, organizations are under growing pressure to balance innovation with cost control, performance, and governance. Cloud cost optimization is no longer a periodic exercise. It is an ongoing, cross-functional discipline that spans development, IT, finance, and procurement. Microsoft Marketplace plays a critical role in helping organizations manage this complexity by accelerating time to value while improving cost visibility and operational efficiency. AI is redefining cloud cost and performance management Every major technology shift forces organizations to rethink how they operate. AI is accelerating that shift by introducing new workloads, new spending patterns, and new expectations for speed and scale. Leaders are now weighing decisions about building versus buying AI solutions, managing data and security trade-offs, and ensuring investments translate into measurable business value. As AI adoption expands, cloud cost management must evolve from reactive cost tracking to proactive optimization. Organizations need tools and processes that help them move fast without losing control. The evolution to FinOps: A modern approach to cloud optimization Cloud optimization has moved beyond traditional infrastructure management. While DevOps remains essential for development velocity, FinOps has emerged as a critical practice for aligning cloud spend with business outcomes. FinOps is not simply about reducing costs. It is about transparency, shared accountability, and maximizing return on cloud investments. By applying FinOps principles, organizations can better understand where cloud and AI spend is driving value, identify inefficiencies, and make informed decisions about scaling. This approach is increasingly important as AI consumption grows across teams and workloads. Marketplace as an extension of Microsoft Cloud Marketplace is more than a software catalog—it is a unified commerce and deployment platform that extends Microsoft Cloud. Marketplace solutions are pre-vetted and designed to integrate seamlessly with Microsoft products like Azure, Foundry, Microsoft 365, and Copilot, enabling faster deployment and reducing operational risk. For organizations adopting AI, Marketplace simplifies access to vetted AI applications, agents, infrastructure tools, and industry-specific solutions. This integrated experience helps teams move from discovery to deployment more quickly while maintaining governance. Maximizing Azure consumption commitments with Marketplace One of the most effective cloud cost optimization strategies available to customers is using Microsoft Marketplace to support Azure consumption commitments. Eligible Marketplace purchases can count dollar-for-dollar toward those commitments, helping organizations fully utilize contracted spend while earning Azure infrastructure discounts. Rather than treating Marketplace as a one-time mechanism to offset unused commitment, many organizations use it strategically. By aligning first-party Microsoft services with third-party solutions that run on Azure, customers can manage their full cloud ecosystem more holistically and drive stronger financial outcomes over time. Flexible purchasing models improve cost control Cloud optimization also depends on how software is purchased and managed. Microsoft Marketplace supports flexible purchasing options, including private offers, multi-year contracts, and customizable billing schedules. These capabilities allow organizations to align software spend with budget cycles, negotiate better pricing, and reduce procurement complexity. By consolidating vendor spend under a single Microsoft agreement, organizations gain clearer financial visibility and simplify vendor onboarding—without slowing down innovation. Built-in governance, security, and spend visibility As cloud environments scale, governance becomes essential. Marketplace integrates with Azure role-based access controls, helping organizations prevent shadow IT and ensure only authorized users can purchase and deploy software. Private marketplaces further enable organizations to curate approved solutions while still allowing teams to request what they need. Marketplace purchases also flow into Microsoft Cost Management, providing a unified view of cloud spending across Microsoft services and Marketplace solutions. Enhanced tagging and allocation capabilities help organizations track spend by department, project, or workload—supporting more accurate forecasting and reporting. For performance optimization, Azure Advisor and related tools offer actionable recommendations to improve efficiency and reliability, helping organizations continuously optimize both cost and performance. Aligning teams around cloud and AI optimization Effective cloud optimization requires alignment across roles. Developers benefit from faster access to pre-integrated tools and AI components. IT teams gain centralized governance, improved security, and better performance insights. Business leaders see faster time to value and clearer alignment between cloud investments and business goals. Finance and procurement teams gain simplified purchasing, consolidated billing, and improved cost transparency. Microsoft Marketplace helps bring these perspectives together by providing a shared platform for discovery, deployment, and management. Turning cloud optimization into a competitive advantage Cloud and AI are now central to how organizations compete, innovate, and grow. Those that succeed will be the ones that treat cloud cost optimization as a continuous practice—one that evolves alongside technology and business priorities. By using Microsoft Marketplace as an extension of Microsoft Cloud, organizations can simplify software procurement, accelerate AI adoption, and maximize the value of their cloud investments. The result is stronger performance, better cost control, and a more resilient foundation for long-term success. The information above is a recap of the January Customer Office Hour session with Kristyn Maddox, Director, Marketplace Product Marketing at Microsoft. You can watch the full session here: Microsoft Marketplace customer office hours: Optimize cloud cost and performance. _____________________________________________________________________________________________________________________________________________________________ Resources Join the marketplace community - Access resources for every stage of the journey on the Microsoft Marketplace, provide feedback, and engage with other partners and Microsoft subject-matter experts focused on your success. Microsoft Marketplace - Your trusted source for cloud solutions, AI apps, and agents
