SharePoint Embedded guide for software companies: Use cases make it real for customers
Getting Started: The Foundation Q: "We're a SaaS platform with multiple customers—how do we keep their data separate?" A: The most successful multi-tenant software companies use the owning and consuming tenant approach. Once you have developed your application and it’s ready to be deployed to a customer, customers want to maintain control of their data, use the security configuration they have configured and compliance controls across their entire data estate. What they don’t want to do is store data outside of their tenant. When using SharePoint Embedded, you control the application, your customer controls their data. Software companies create their application in the owning tenant. When you’re ready to bring on a new customer, you simply register SharePoint Embedded on the consuming tenant (your customer). As documents are added through your application, they reside in the consuming tenant and all the security boundaries they have configured. Scale reality check: You can create millions of containers per tenant, with each container holding up to 30 million documents. That's serious enterprise scale. Q: Our customers demand specific geographic data storage and compliance. Can SharePoint Embedded handle this? A: SharePoint Embedded inherits Office 365's data residency capabilities, which often exceeds what most software companies can provide on their own: Geographic controls: Data stays within customer-specified regions Government clouds: FedRAMP support for government tenants or contractors Compliance inheritance: Customers leverage their existing Microsoft compliance investments Game-changer example: Customers need FIPS compliance and ITAR support for government contractors. Rather than building this infrastructure themselves, they leverage Microsoft's existing certifications. Q: What's the real story on costs? How do software companies handle SharePoint Embedded billing? A: When a software company is ready to deploy their app there are two primary billing models: Pass-through model: Customer pays Microsoft directly through an Azure subscription they choose. The software company handles integration, customer handles billing Customers maintain control over their data and costs Works well for enterprise customers with existing Microsoft relationships Software company-standard model: Software companies include SPE costs in their pricing and then invoices the customer Easier for customers, but software companies must manage costs closely. Storage: ~$0.0067/GB/day + API transaction costs + egress costs Works well for SMB customers or all-inclusive service models Success Pattern: Legal sector software companies typically use pass-through, while financial management apps include costs in their SaaS pricing. Document collaboration: it’s all about the user experience Q: Our customers hate our current document editing experience. What changes with SharePoint Embedded? A: The collaboration transformation is usually immediate and dramatic: Before SharePoint Embedded: Web-only editing with limited functionality Version conflicts and manual merging External users need full software licenses Downloading a document to edit it and then re-uploading it increases risk After SharePoint Embedded: Native desktop Office applications with full feature sets Real-time co-authoring with automatic conflict resolution External users collaborate without Office licenses Zero custom integration maintenance Customer impact story: A Construction Cloud customer was frustrated with web-only Office editing. With SPE, their construction teams can collaborate on specifications in desktop Word, cost sheets in Excel, and project presentations in PowerPoint—all simultaneously. Customer satisfaction scores improved immediately. Q: How do we handle external users—clients, contractors, reviewers—who aren't employees? A: This is where SharePoint Embedded really shines for software companies: Guest user support: External users can collaborate using their existing email addresses No license requirements: Guests don't need Office licenses to edit documents Time-bound access: You can grant temporary access for specific projects Granular permissions: External users see only what they need to see, and you control this through existing Entra ID security practices. Real-world scenario: A pharmaceutical customer needs external regulatory reviewers to collaborate on drug approval documents. These reviewers (often using Gmail accounts) can access specific documents, make comments, and track changes—all while maintaining strict security controls and audit trails. Q: What about industries with specialized document formats? Will SharePoint Embedded work? A: SharePoint Embedded handles standard Office formats natively, and provides extensibility for specialized formats: Native support: Word, Excel, PowerPoint can be viewed or edited using the browser or full desktop experience. Custom formats: Through Power Platform connectors and custom viewers depending on how you built the user interface. Industry-specific: Many software companies build viewers for CAD files, proprietary image documents or medical records. This is the real value add for your app. Specialized example: Engineering companies use CAD files and Office documents, relying on custom viewers for technical drawings as well as built-in Office collaboration tools for handling specifications and project documentation. AI and intelligence: The future-forward Q: Everyone talks about AI, but what are software development company customers really using? A: Based on real implementations, customers are getting value from three AI capabilities: In app experience Customers can find information across documents using natural language "Show me all contracts with renewal clauses" instead of keyword searches Provides a robust alternative to the custom search solutions that many find challenging to develop effectively. Document summarization Automatic summaries of meeting notes, reports, contracts Executives get briefings without reading full documents Particularly valuable for legal and consulting software companies Content extraction Automatic metadata extraction from uploaded documents Classification and tagging without manual effort Useful for compliance and organization AI success story: A market research platform uses AI to mine insights from massive survey result repositories. They can identify patterns across client studies and provide competitive intelligence that drives premium service offerings—capabilities that would have required a dedicated AI team to build. Q: How does SharePoint Embedded content fit into the Microsoft AI story? A: Content is king and when it’s stored in SharePoint Embedded you can use the Microsoft AI stack to reason over it. Copilot Studio – Build custom agents that can access and reason over your SharePoint Embedded content, enabling tailored workflows and conversational experiences for your business scenarios. Azure AI Foundry – Use advanced AI models and orchestration tools to analyze documents, extract insights, and apply generative reasoning directly on your embedded content (coming soon). M365 agents – Empower Microsoft 365 Copilot and domain-specific agents to leverage your SharePoint Embedded data securely, delivering contextual answers and automation across apps like Teams, Outlook, and Word. Control flexibility: You can disable Copilot at the container level, so customers only pay for what they use. This lets you offer different service tiers based on AI capabilities. Q: How much prep work do our documents need for AI to be effective? A: The software companies seeing best AI results focus on structured metadata and information architecture fundamentals. Document organization: Clear document types (contracts, reports, specifications) Consistent metadata fields across document types Permissions, sensitivity labels and container architecture reduce the accidental data leakage risk. Users simply add the document to a container through your application and SharePoint Embedded does the rest by automatically indexing the content, which adds it to the semantic index, so you get all the reasoning power in the LLM's. Preparation benefit: Software companies find that organizing their document metadata and permissions before enabling Copilot improved AI accuracy. Customers get better results and more relevant document summaries. Security and compliance: Enterprise requirements Q: Our customers are in highly regulated industries. How do we handle their compliance requirements without becoming compliance experts ourselves? A: This is SharePoint Embedded's biggest advantage for software companies—compliance inheritance: Your customer's compliance = Your application's compliance Following the owning/consuming deployment model provides: Customer's DLP policies automatically apply to containers Their retention policies govern document lifecycles Their audit requirements are automatically met Their security controls protect your application's data Compliance success: Financial services software companies don't need to become SOX compliance experts—they inherit their customers' existing Microsoft Purview policies. Legal software companies get automatic GDPR compliance without building privacy infrastructure. Q: What about audit trails and eDiscovery? Do we need to build this ourselves? A: SharePoint Embedded provides enterprise-grade audit capabilities automatically: Complete audit trails: Every document access, modification, and sharing event is logged eDiscovery Integration: Native integration with Microsoft eDiscovery tools Retention policies: Automatic retention based on customer's existing policies Legal hold: Built-in legal hold capabilities for litigation scenarios Audit reality: Legal sector software companies can provide their clients with comprehensive audit trails for regulatory compliance without building any custom audit infrastructure. Everything is handled through Microsoft's existing compliance tools. Q: How do we handle customers who want to keep control of their data? A: SharePoint Embedded gives customers more control than most software company solutions: Customer tenant: Data stays in the customer's Microsoft tenant, not yours Customer policies: Their security and compliance policies govern the data Software company access: You only access data through APIs with customer-granted permissions Control example: SaaS platform software companies explain to customers that their documents live in the customer's tenant with customer-controlled governance. This made enterprise sales easier because customers maintain complete control over their data. Have more questions or want to talk to the team, contact us: SharePointEmbedded@microsoft.com _____________________________________________________________________________________________________________________________________________________________ Resources SharePoint Embedded overview: SharePoint Embedded Overview | Microsoft LearnLock 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: As of October 31, multiyear contract durations are available for CSP offers. 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. 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-FAQsSharePoint Embedded guide for software companies
Looking to accelerate your SaaS solution with SharePoint Embedded? This new blog post breaks down key success factors, positioning strategies, and how to align your architecture for maximum impact. Read the full article here: SharePoint Embedded guide for software companies: success factors, positioning & key insights | Microsoft Community HubSharePoint Embedded guide for software companies: success factors, positioning & key insights
Welcome to the definitive Q&A guide for software development companies exploring SharePoint Embedded for their SaaS applications. This blog series addresses the most frequently asked questions from our thriving software company community, drawing from real-world implementations across partner organizations spanning financial services, healthcare, manufacturing, and technology sectors. Whether you're building a multi-tenant document management platform, modernizing legacy systems, or creating industry-specific collaboration solutions, this guide provides practical insights into SharePoint Embedded's unique advantages for software company scenarios. From multi-tenant architecture patterns and customer data isolation to Office integration strategies and competitive positioning, we've compiled the essential knowledge you need to accelerate your development and go-to-market success. SharePoint Embedded represents a paradigm shift for software companies who have traditionally faced the choice between building complex storage infrastructure or compromising on enterprise-grade features. With its consumption-based pricing model, API-first design, and native Office integration, SharePoint Embedded enables software companies to deliver enterprise-ready document experiences while focusing on their core business logic and customer value. Q: What are the key success factors I should focus on as a software company using SharePoint Embedded? A: Based on our analysis of successful software company implementations, there are three critical success factors: Building a scalable document management platform is complicated and detracts from the business logic you want to focus on with your solution. Users are demanding modern collaboration tools that Microsoft Office provides at scale. SharePoint Embedded gives you the foundational tools and features that integrate with your solutions, providing you a competitive advantage. Software development companies can unlock significant value by building on SharePoint Embedded. Its distributed architecture empowers software companies to deliver scalable, multi-tenant solutions, ensuring each customer’s data is securely isolated within dedicated containers. By leveraging SharePoint Embedded, software companies can guarantee that compliance and data residency requirements are met directly in the customer’s own Microsoft 365 tenant, streamlining regulatory approvals and building customer trust. The platform’s flexible, consumption-based billing model aligns costs with actual usage, supporting growth and simplifying budgeting for both software companies and their customers. At the same time, software companies retain full control over their application code base, allowing them to innovate and differentiate their offerings, while Microsoft manages the underlying infrastructure, security, and compliance features. Q: How do I position SharePoint Embedded against competitors in sales situations? A: SharePoint Embedded offers unique competitive advantages across different competitor categories: Against Pure Storage Solutions: Native Office Integration: Unmatched co-authoring and collaboration experiences Enterprise Security: Built-in compliance and governance vs. costly add-on features Microsoft Ecosystem: Leverage customers' existing Microsoft investments Software company-Focused APIs: Purpose-built for integration vs. consumer-focused APIs Against Building Custom Storage: Faster Time to Market: Significantly reduce development time Enterprise Features: Compliance, security, and scale built-in Office Integration: Impossible to replicate the native Office experience independently Global Infrastructure: Microsoft's global scale without operational overhead Against SharePoint Online: True Multi-Tenancy: Better customer isolation and independent scaling Consumption Pricing: Costs align with customer success vs. per-user licensing API-First Design: Developer-friendly vs. SharePoint customization complexity No Limitations: Independent scaling without site collection or storage quotas Q: Is the content stored in SharePoint Embedded AI ready? A: When you ingest documents into SharePoint Embedded, they are automatically added to the platform’s search and semantic indexes. This seamless integration ensures that your content is immediately available for advanced AI capabilities, such as intelligent search, document automation, and content summary. As a result, users can quickly benefit from AI-driven insights and enhanced discovery, making collaboration and workflow automation more powerful and efficient across their teams. AI Ready by Design: SharePoint Embedded provides secure, structured, and highly accessible data storage, ensuring content is ready for AI integration from the start. Robust APIs & Easy Integration: The platform’s powerful APIs and seamless Microsoft ecosystem integration make it simple to connect content to AI services like Azure AI Foundry and Microsoft 365 Copilot. Advanced Capabilities: Organizations can enable advanced search, automation, and generative AI scenarios, leveraging their information in new, intelligent ways. Enterprise-Grade Compliance & Security: Content remains protected with built-in security and compliance, crucial for enterprise adoption of AI-powered workflows. Empowering Business Value: This foundation allows businesses to unlock added value from their content and drive smarter, more efficient operations. Q: What are the key talking points that resonate with enterprise customers? A: For software development companies, these value propositions drive success with enterprise audiences: Onboard your application: Easily deploy your solution through the Microsoft Marketplace to your customer tenant. Content lives in your customer's tenant: Software companies can leverage built-in compliance and security features to speed up enterprise sales cycles and meet stringent requirements. You control the billing: Software companies can grow alongside their customers, with consumption pricing that supports expansion and rewards success. Your customers security posture is honored: When your solution is deployed to customer tenants, it will inherit all the security, compliance and governance they have configured. Content is always maintained in the geo they specify. Risk Reduction for software companies: By utilizing Microsoft’s infrastructure and security, software companies can reassure enterprise customers and minimize operational risk. Q: How do I get started building a POC for my software development companies' solution? A: Follow this proven software company-focused POC approach that has delivered success across our partner ecosystem: Getting started is easy: Install the Visual Studio Code extension and start a 30 day trial of SharePoint Embedded. For longer development cycles that allow you to simulate a real production environment, configure SharePoint Embedded without any storage or throughput limitations. Software Development Company Development Lifecycle for Re-Platforming on SharePoint Embedded Phase 1: Technical Foundation – Begin by establishing a secure, multi-tenant architecture using SharePoint Embedded’s container model to ensure robust customer data isolation. Integrate with Microsoft Office experiences to provide seamless co-authoring and collaboration, a key customer demand. Validate authentication flows for enterprise-grade user security and conduct thorough performance testing to guarantee fast, reliable document access at scale. Phase 2: Business Alignment – Move beyond technical validation to align your solution with real-world customer scenarios. Test end-to-end workflows and migrate sample data from legacy systems, ensuring the platform meets customers’ expectations for business continuity. Collect hands-on feedback from customer users to refine user experience and validate your pricing model based on projected usage, addressing concerns around cost predictability and ROI. Phase 3: Production Readiness – Prepare your solution for launch by executing a comprehensive security and compliance review, leveraging Microsoft’s built-in controls to address enterprise requirements. Perform scale testing with production-sized datasets and user groups to ensure reliability under peak loads. Establish monitoring, alerting, and support processes to deliver a consistent operational experience. Finally, enable your sales and onboarding teams with go-to-market resources, ensuring a smooth transition for customers migrating to your new platform. Key Success Metrics That Address Customer Demands: Verified customer data isolation for privacy and compliance High user adoption of Office integration, satisfying customers’ desire for familiar productivity tools Consistent fast document loading, meeting performance expectations Validated cost model based on real usage, delivering value and transparency to customers By following this development lifecycle, software companies can re-platform on SharePoint Embedded with confidence, addressing top customer demands for security, scalability, seamless Office integration, and predictable costs—all while accelerating time to market and driving adoption. Q: How can I gain additional customers by having my app in the Microsoft Marketplace? A: Listing your app in the Microsoft Marketplace opens the door for software companies to reach new customers and increase sales by leveraging Microsoft’s ecosystem and global reach. The Marketplace acts as a powerful channel to showcase your solution to millions of enterprise buyers who trust Microsoft to deliver secure, reliable products. Technical Resources to Drive Adoption: ISV Success Program – Get expert guidance to optimize your app for Marketplace visibility and customer engagement, ensuring your solution stands out and is ready for enterprise adoption. Solution Architect Reviews – Receive feedback from Microsoft experts to ensure your product meets the needs of customers and is positioned for growth in the Marketplace. Preview Access – Early access to new features helps you differentiate your app, attracting customers looking for cutting-edge solutions. Software Development Company Documentation – Access to tailored implementation guides ensures your SaaS offering is Marketplace-ready and easy for customers to deploy. Go-to-Market Support to Accelerate Sales: Marketplace Listing – Promote your app to a global audience, driving qualified leads and expanding your reach beyond your existing customer base. Partner Development Managers – Benefit from dedicated business support and introductions to new customers in strategic verticals. Co-sell Opportunities – Collaborate with Microsoft’s sales teams for joint selling, increasing your exposure and boosting sales potential. Industry Programs – Join vertical-specific programs and events to connect directly with customers seeking solutions in your area of expertise. In summary, Microsoft Marketplace empowers software companies to accelerate customer acquisition and drive sales growth by providing broad exposure, technical and business support, and opportunities for collaboration with Microsoft’s network. Have more questions or want to talk to the team, contact us at SharePointEmbedded@microsoft.comApp Advisor updates: Build smarter, publish faster with these new features
The App Advisor experience has been enhanced to help you build smarter and publish faster to the Microsoft Marketplace. The six new features make it easier to stay focused, move faster, and scale smarter with apps and agents. Whether you are in the planning, building, or publishing phase of your journey, the new features are designed to meet you where you are, offering curated guidance and actionable insights. Learn how the updates can help you today. Build smarter, publish faster: Here’s what’s new in App AdvisorBuild smarter, publish faster: Here’s what’s new in App Advisor
App Advisor just got a major upgrade - and it’s changing the game for software development companies building apps and agents for the Microsoft Marketplace. Since its MVP launch in January 2024, App Advisor has helped thousands of partners like you streamline their journey. 💬 What partners are saying App Advisor isn’t just a tool - it’s a game-changer. Here’s what partners have shared about their experience: “I appreciate that App Advisor curates the content for the partner since the amount of data available is just so vast. It does a great job of curating for them based on their goals.” Frank Valdivieso, President & CEO, Gryphon Consulting ⚡What’s new? Smarter focus, faster execution, and scalable growth Now, with six new features launched in the US (and global availability coming soon), App Advisor is making it easier than ever to stay focused, move faster, and scale smarter with apps and agents. Here’s what’s new: 🛠️ In-app marketplace offer creation Start your marketplace journey directly within App Advisor - no context switching required. You can now initiate offer creation for popular offer types without leaving the platform. Not signed up to publish - no problem! App Advisor can get you signed up and on your way to creating your offer. 🚀 Tailored recommendations by marketplace offer type Confidently align your app with the right marketplace offer and pricing model using our interactive wizard. Get personalized recommendations based on your app profile and program membership - and fast-track publishing to launch sooner. 📁 Multi-project save with Partner Center linking Advance multiple apps and agents from a single, centralized experience. Save guidance across projects and link each to its Partner Center offer for seamless continuity. 🎯 Membership-based guidance Receive personalized guidance based on your ISV Success or Marketplace Rewards membership. App Advisor adapts its recommendations to help you make faster, smarter decisions. ✅ ISV Success sign-up integration Sign up for ISV Success and resume your workflow without disruption. Unlock benefits like cloud credits, technical consults, and go-to-market resources - all without breaking your build flow. 🎥 Embedded video playback Explore how to build, publish, and grow your apps and agents with step-by-step video guidance. Watch demos and guidance videos directly within App Advisor. Stay in flow with seamless, distraction-free learning, all while keeping the AI-powered assistant visible and ready to help. Ready to accelerate your marketplace success? Dive into App Advisor today to build, publish, and sell transactable offers with clarity, speed, and confidence. Make sure you check out the new Microsoft Marketplace - the single destination to find, try, and buy AI apps, tools, and agents. Read the blog to learn more. Ready to level up with App Advisor? Watch this quick video and unlock what’s next!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!
