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 HubFAQ: Agency fee reduction for auto-renewals and steps required for reduction
Q: I have a few questions related to the agency fee discount for renewals (Agency fee discount for renewals - Marketplace publisher | Microsoft Learn), Does the reduction to 1.5% for a renewal also apply if the offer is auto-renewing? My understanding is that the renewal only applies if a new private offer is created and the pop-up checkbox is confirmed that this private offer is for a renewal. Is that correct? A: Your understanding for both of these is correct.
Navigating your marketplace pipeline: What matters most?
In the Microsoft Marketplace, not every deal follows the same path. Some are more likely to succeed through Marketplace channels, while others resonate more with Microsoft sellers. Join Reis Barrie - CEO of Carve Partners, as he shares practical ways to assess and prioritize your pipeline, based on how Carve approaches deal evaluation. You’ll learn how to: Identify which deals are most likely to close via Marketplace Recognize patterns that signal low-probability opportunities Understand what Microsoft sellers tend to focus on—and why it matters Whether you're refining your strategy or just looking to work more efficiently, this conversation is designed to help you make more informed decisions. 📅 August 13th | 10 AM PST | 1 PM EST 🔗 Register here Open to all Marketplace partners—bring your questions and insights!REMINDER: Partner of the Year Award nominations are due July 18, 2025
Have you started your nomination for this year’s Partner of the Year Awards? Nominations are due a week from today, so be sure to get your nominations in on time and vie for a chance to be named the Marketplace Partner of the Year! The deadline to submit is July 18, 2025, 6:00 PM, Pacific Time. Visit the Partner of the Year Awards webpage to learn more about the awards, access the nomination tool, get tips to create a winning entry, and find answers to your questions.Marketplace Cashflow Management
A new one on me, but one to watch for if you haven't yet yourselves encountered it: Back in April, we created an Azure Marketplace private offer for an enterprise customer Customer has a MACC; but instead of their EA number, they gave us a subscription ID with the explanation they separate their internal consumption from Marketplace purchases Customer waited until 2 May to purchase their private offer Seemed innocuous at the time, but . . . the combination of purchasing under a subscription ID + waiting until early in a new month to execute the purchase = the transaction not landing on their Microsoft Azure bill until June. Which in turn means they don't have to pay Microsoft until July. Which in turn means we don't receive our payout until August. Or maybe September. Clever, eh? Good for the customer's cash flow. Less good for ours. Some customers are getting wise to the nuances of Marketplace billing and payment cycles, so be wary of the impacts on your cashflow! #MarketplaceChampions #SponsoredAccelerate 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-FAQs
Is your organization positioned for co-sell success with Microsoft?
Standing up a co-sell motion takes more than Marketplace listing and a compelling product. It requires thoughtful alignment across technical, operational, and commercial functions. In his latest blog, Mike Marzano shares practical guidance based on real-world experience leading Contentsquare’s co-sell and Marketplace strategy—driving over $40M in revenue through Microsoft’s ecosystem. Key insights include: How to assess your organization's readiness across engineering, finance, sales, and legal The importance of executive sponsorship and cross-functional coordination Technical considerations for integrating with Microsoft’s stack and optimizing for Azure If you're involved in building, delivering, or scaling software solutions, this is a valuable framework for ensuring co-sell can be a driver—not a drag—on your GTM efforts. 📅 Don’t miss the opportunity to hear more from Mike on June 18, where he’ll share additional learnings and answer live questions. 🔗 Read the full post Learn more about the June 18th session
