Microsoft Marketplace Partner Digest
March marks a strong quarter of momentum across the Microsoft Marketplace ecosystem, with partners scaling their businesses while delivering high quality customer experiences—directly, through the channel, and alongside Microsoft. From monetizing AI innovation to streamlining post purchase workflows and co-selling motions, partners continue to turn Marketplace readiness into real, repeatable growth. This month’s digest highlights the insights, updates, and opportunities helping software companies meet customers where and how they choose to buy. Articles worth reading As more partners race to build AI apps and agents, the real differentiator is turning that innovation into recurring revenue through scalable sales motions. Microsoft’s Brady Bumgarner shares how App Advisor helps teams think about monetization well before they publish an offer, empowering partners to launch with confidence and scale faster. 🚀 Learn more about AI app and agent monetization Brady also breaks down how combining Marketplace transactable offers with Azure IP co-sell readiness turns co-selling into a true growth engine. More partners are leveraging the insights and guidance available through App Advisor to build repeatable co-selling muscle memory. 🔄️See how co-selling with Microsoft can accelerate your business growth As customers move to AI‑first architectures, cloud cost optimization is becoming a core decision lens—not just an operational concern. In this post, Justin Royal explores how customers are rethinking cost, performance, and governance as continuous disciplines. For sellers, this has clear implications: customers increasingly expect flexibility in how solutions scale, perform, and are paid for, and those expectations should shape how software companies build, package, and position offers on Marketplace. 💸 Explore how customers are optimizing cloud spend as AI adoption scales Accelerate your Marketplace growth by delivering a seamless customer experience after the click. Marketplace Fulfillment APIs automate activation, entitlement, and subscription management so you can reduce friction, speed time‑to‑value, and scale globally with confidence. Explore how these APIs—and new Microsoft reference code—help product teams integrate faster and support every customer at every stage. 🔍 Discover how Marketplace Fulfillment APIs streamline and automate critical post purchase workflows Marketplace updates Dragon Copilot solutions in Microsoft Marketplace On March 5, we announced preview of Dragon Copilot solutions for Microsoft Marketplace. This enables software companies to build and sell AI apps and agents that integrate with Dragon Copilot, while allowing customers to discover and purchase solutions that work with their existing Microsoft investments. Software companies can build and publish their solutions using one of three offer types: Dragon Copilot Physician Apps and Agents (in preview now) Dragon Copilot Clinical App Connectors (coming soon) Dragon Copilot Radiology Apps and Agents (coming soon) Dragon Copilot is built for care teams including physicians, nurses, and radiologists and is already operating with more than 100,000 clinicians relying on it daily to support care for millions of patients each month. Steps you can take to get started: Read through our documentation on how extensions for Dragon Copilot work and how to build your own Check out the sample repo with sample code, and more Contact dragon_extensions@microsoft.com to inquire about joining preview 🐉 Learn how Dragon Copilot solutions are modernizing Healthcare Recent events How to build a Microsoft Marketplace channel practice In his recent webinar, Darren Sharpe highlights how partners are increasingly building their channel businesses with Microsoft Marketplace at the core—using it as a channel-led, Marketplace delivered growth engine. As buying shifts toward lineofbusiness leaders and decentralized procurement, Marketplace brings together discovery, governance, and enterprise purchasing in one place. Darren shares how partners that align sales, alliances, and operations around Marketplace are better positioned to drive repeatable growth, meeting customers where and how they choose to buy. 🎥 Watch on demand Inside Azure IP co-sell: What high-performing software companies do differently Get an insider’s view of what truly moves the needle for Microsoft Marketplace and Microsoft Azure IP co-sell success. Guest speaker Barbara Treviño breaks down the signals Microsoft prioritizes when assessing submission strength—helping software development companies understand what great looks like across architecture, messaging, evidence, and sequencing. You’ll learn why high performing software development companies approach readiness differently, and how that difference translates directly into smoother approvals and stronger GTM impact. 🎥 Watch on demand AI-powered automation for Marketplace private offers and IP co-sell Learn how software development companies can use AI-powered automation to simplify buying through Microsoft Marketplace, streamline Microsoft Marketplace private offers, and maximize the effectiveness of co-selling opportunities. Join Jon Yoo, Co-Founder & CEO at Suger, as he explores how reducing operational friction in Partner Center can help you accelerate deal velocity, improve collaboration with Microsoft sellers, and drive Azure adoption. 🎥 Watch on demand 📅 Coming up Partner office hour Build, publish, and optimize Marketplace offers with App Advisor Wednesday, Mar 18, 2026, 8:30 AM PDT Tune in for live demos and proven best practices on using App Advisor, Microsoft’s guided experience for Microsoft Marketplace success! Learn what App Advisor is, how it works, and how it can help partners accelerate Marketplace offer creation. Walk through key stages of the experience from validating value to publishing and optimizing your listing. ➡️ Get the meeting details Customer office hours Charting your AI strategy for manufacturing with Marketplace Wednesday, Mar 25, 2026, 9:30 AM PDT Build, buy, or blend? Gain the insights you need as a manufacturer to scale AI apps and agents across the factory floor using Microsoft Marketplace. We’ll go beyond AI theory and focus on practical manufacturing scenarios—connecting factory equipment, IoT, and enterprise systems into a unified foundation that enables analytics, digital twins, and AI agents. ➡️ Get the meeting details In-person events Channel Partners Conference & Expo 2026 Microsoft Marketplace is sponsoring Channel Partners Conference & Expo 2026 in Las Vegas, with interactive sessions, booth conversations, and private meetings focused on helping channel partners understand how Marketplace can simplify software purchasing for their customers. Partners can expect to learn how the expansive catalogue of products and services available from thousands of software companies delivered through channel-led sales capabilities are Marketplace enabled and accelerate AI‑ and cloud‑led sales through Marketplace. 📆 April 13-16, 2026 📍The Venetian Resort, Las Vegas ➡️ See the details and learn how to register Microsoft AI Tour Our series continues, coming to more cities around the globe. Bringing in‑person opportunities for partners to connect with Microsoft experts, explore innovation and get inspired. ➡️ Find your city and registerScale your sales growth with negotiated deals and reselling with ease
Negotiated deals are one of the most effective ways to grow larger, more flexible sales through Microsoft Marketplace. They let you align pricing, billing, and terms to how customers prefer to buy, without changing how your app or agent is built. That last point matters. Negotiated deals don’t require you to create a new app or agent. Instead, they let you repackage existing, publicly transactable offers with customized terms for specific customers or partners. The result is faster deal execution without added development overhead.How do you actually unlock growth from Microsoft Teams Marketplace?
Hey folks 👋 Looking for some real-world advice from people who’ve been through this. Context: We’ve been listed as a Microsoft Teams app for several years now. The app is stable, actively used, and well-maintained - but for a long time, Teams Marketplace wasn’t a meaningful acquisition channel for us. Things changed a bit last year. We started seeing organic growth without running any dedicated campaigns, plus more mid-market and enterprise teams installing the app, running trials, and even using it in production. That was encouraging - but it also raised a bigger question. How do you actually systematize this and get real, repeatable benefits from the Teams Marketplace? I know there are Microsoft Partner programs, co-sell motions, marketplace benefits, etc. - but honestly, it’s been very hard to figure out: - where exactly to start - what applies to ISVs building Teams apps - how to apply correctly - and what actually moves the needle vs. what’s just “nice to have” On top of that, it’s unclear how (or if) you can interact directly with the Teams/Marketplace team. From our perspective, this should be a win-win: we invest heavily into the platform, build for Teams users, and want to make that experience better. Questions to the community: If you’re a Teams app developer: what actually worked for you in terms of marketplace growth? Which Partner programs or motions are worth the effort, and which can be safely ignored early on? Is there a realistic way to engage with the Teams Marketplace team (feedback loops, programs, office hours, etc.)? How do you go from “organic installs happen” to a structured channel? Would really appreciate any practical advice, lessons learned, or even “what not to do” stories 🙏 Thanks in advance!
Looking for advice on collaborating with complementary Microsoft partners
a { text-decoration: none; color: #464feb; } tr th, tr td { border: 1px solid #e6e6e6; } tr th { background-color: #f5f5f5; } Hi everyone 👋 My name is Martin Rojze. I’m focused on the Microsoft data platform, with a specialization in Microsoft Fabric and Power BI. My work is centered on helping organizations design, implement, and scale modern analytics and reporting solutions on Azure, with a strong emphasis on real world business outcomes rather than just dashboards. As demand for end to end solutions continues to grow, I’m looking to deepen collaboration with complementary Microsoft partners, for example partners who focus on Dynamics 365 or Business Central Data engineering, data science, or AI App development including Power Apps, custom apps, or ISVs Security, governance, or change management I’d really appreciate advice from partners who have successfully built co sell or referral relationships, specifically What has worked and what has not when partnering with other Microsoft partners How you structure collaboration so it’s mutually beneficial and scalable Tips on aligning around go to market, co selling, or delivery without stepping on each other’s toes If you’re a partner interested in collaborating around Fabric and Power BI led analytics engagements, or if you’re willing to share lessons learned, I’d love to connect and learn from your experience. Thanks in advance and looking forward to the discussion. MartinStreamline your Marketplace deals with AI-powered automation
Navigating the operational complexity of Microsoft Marketplace private offers and IP co-sell workflows can slow deal velocity and add friction between your CRM and Partner Center. In the latest blog post, How to streamline Microsoft Marketplace private offers and IP co-sell with AI powered automation, Kyle Heisner from Suger, shares practical insights on automating these processes, reducing manual work, and boosting accuracy with AI-driven integrations. Whether you’re managing plan configuration, validating co-sell referrals, or closing the loop from quote to cash, this article highlights where AI can serve as a co-pilot — helping your team operate more efficiently and accelerate Marketplace success. Want to learn more: Join the live session on March 11 to learn directly from the experts and get your questions answered. AI-powered automation for Marketplace private offers and IP co-sell - Microsoft Marketplace CommunityTurn Microsoft Marketplace into a true growth engine
Many software companies publish their solution in Microsoft Marketplace and wait—hoping growth will follow. The fastest‑growing partners take a different approach. By combining a transactable Marketplace offer with Azure IP co‑sell eligibility, sellers unlock a powerful growth engine. Co‑sell ready offers consistently drive larger deals, faster close rates, and direct access to Microsoft’s field sellers, while allowing customers to apply purchases toward their Azure commitments. When Marketplace and co‑sell work together, partners move faster, sell bigger, and accelerate their enterprise sales motion. Read the full article and learn more about accelerating growth through the Microsoft Marketplace: Accelerate massive growth by co-selling through Microsoft Marketplace with App Advisor guidancePipeline Prioritization with Marketplace Propensity Scoring
A note of gratitude to the Marketplace Rewards team + a recommendation for my partner peers: Marketplace Propensity Scoring has proven to be an exceedingly 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. We combine this with our co-sell conversations a) to help our buyer identify who on their own IT team has the necessary permissions to buy through Marketplace and b) to gain insight into the customer's MACC status (ie, are they behind pace and therefore keen to decrement via Marketplace purchases). We've shaved a full month off our historical sales cycle since implementing this into our process three quarters ago. Side note on another way valuable way to use this benefit: We also lead with Marketplace in opportunities with a propensity score of 0. Three times we've been successful in being a customer's first-ever Marketplace transaction. It took a lot more effort, but we do it because it demonstrates for our Microsoft friends our commitment to the co-sell motion . . . and they LOVE it when we help them establish a precedent on which they can build the customer's Marketplace muscle. #MarketplaceChampionsAccelerate massive growth by co-selling through Microsoft Marketplace with App Advisor guidance
Co-selling with Microsoft is one of the most powerful growth levers available to software companies to sell to enterprises. But on its own, co-sell is not a strategy. The real acceleration happens when you combine them. When you publish a transactable offer in Microsoft Marketplace and make it Azure IP co-sell eligible, you unlock joint selling with Microsoft’s global field organization— and that changes the trajectory of your business. Here’s how to turn Marketplace plus co-sell into a growth engine. Why Marketplace & co-sell drive larger, faster deals Data consistently shows that co-sell deals outperform non-co-sell deals: Co-sell deals are ~ 30% larger, Co-sell deals close up to 2x faster, Microsoft sellers are incentivized to prioritize Azure IP co-sell eligible solutions. When your offer is transactable in Marketplace and co-sell eligible, three important things happen: Microsoft sellers can confidently introduce your solution to their enterprise accounts, Customers can apply purchases toward their Azure consumption commitments, Your offer becomes visible inside Microsoft’s internal sales systems. This reduces friction in procurement, increases executive visibility, and accelerates deal velocity. You’re no longer selling alone. You’re selling with leverage. The following is high-level guidance of the steps to start co-selling Want to skip right to the curated guidance? Go to App Advisor Step 1: Publish a transactable offer in Marketplace Co-sell begins with Marketplace readiness. To unlock Azure IP co-sell benefits, you must publish a transactable offer through one of these marketplace offer types: Software as a service (SaaS), Azure Application, Azure Container, Azure VM. If you sell apps or agents built on Microsoft 365 or Copilot, link your solution to a transactable SaaS offer to qualify. To see how Abnormal Security made the most of co-selling, see the blog and corresponding Co-Sell Coaching call. Step 2: Create a co-sell ready solution in Partner Center When publishing your offer, you can create a co-sell solution to activate visibility with Microsoft sellers. Inside the Referrals workspace in Partner Center: Create a co-sell solution, Classify your solution using Microsoft taxonomy, Upload required marketing collateral: Solution one-pager, pitch deck, reference architecture diagram (required for SaaS), Enter the link to your product's website to help Microsoft sales teams and channel resellers learn more about your solution, Add geographic sales contacts. This listing tells Microsoft sellers: Who to contact, What your solution does, Which Azure services it uses, Why they should bring you into a deal. Clear positioning drives seller confidence. Seller confidence drives joint opportunity. Step 3: Achieve Azure IP co-sell eligible status To become Azure IP co-sell eligible, you must meet performance or technical validation requirements. You can qualify by: Reaching $100K USD in trailing 12-month Marketplace billed sales or Azure Consumed Revenue (this is the fastest path to meeting that requirement) or Passing Microsoft technical validation confirming your solution is primarily built on Azure This status matters because: Customers can count the purchase toward Azure consumption commitments, Microsoft sellers are financially incentivized to include your solution, Your offer is labeled Azure benefit eligible. Customers being able to decrement their Azure consumption commitments can help draw engagement and interest to your app or agent. Step 4: Use referrals to build momentum High-performing software companies don’t just wait for Microsoft to bring opportunities. They submit referrals to help sell co-sell their app. Submitting referrals: Increases your visibility to Microsoft sellers, Signals strategic partnership depth, Opens doors to new seller collaboration, Provides insight into customer Azure commitments. Small actions compound. Referral discipline builds pipeline resilience. For more information about referrals, visit Generate, manage, and nurture leads step in App Advisor. Step 5: Use Marketplace Rewards to amplify co-sell Marketplace Rewards benefits strengthen your co-sell motion: Customer propensity scoring to prioritize Marketplace-ready buyers, Azure sponsorship credits to help close competitive deals, Microsoft seller webinars and solution spotlights. This is how you differentiate inside the ecosystem — not just with customers, but with Microsoft sellers. The growth shift: from independent seller to ecosystem player Software companies that treat Marketplace merely as a checkout page miss some amazing opportunities. Those that combine: Transactable offers, Azure IP co-sell eligibility, Strong co-sell collateral, Referral discipline, and Marketplace Rewards. Move from transactional selling to ecosystem selling. The result: Larger average deal sizes Shorter sales cycles Stronger executive alignment Increased visibility inside Microsoft accounts You’re no longer trying to break into enterprise deals. You’re already in the room. Ready to put your co-sell strategy into motion? Visit App Advisor to learn more about how to accelerate your growth with co-sell.Building an AI solution is just the first step - turning it into revenue is where real growth begins
As partners bring AI-powered apps and agents to market at record speed, many struggle with how to price, license, and operationalize their offers for long-term success. This article breaks down how to design monetization early and avoid common pitfalls when publishing on Microsoft Marketplace. Learn how the Marketplace Monetization Checklist helps SaaS and container offers establish secure licensing, effective pricing models, and scalable fulfillment. See how App Advisor translates guidance into action, and how AI Envisioning sessions help align teams on strategy before you build and publish. If you want Marketplace to become a predictable revenue engine—not just a distribution channel read the full article to learn how to monetize your AI apps and agents and drive sustainable growth. Read more: Monetize your AI apps and agents on Marketplace to realize growthMonetize your AI apps and agents on Marketplace to realize growth
Ready to stop guessing how to monetize your offer? Skip right to App Advisor Software development companies are building faster than ever. But when it comes to sales, the key to monetization happens early. Monetization, packaging, and operational execution helps determine whether your AI solution becomes a growth engine on Microsoft Marketplace. New data reinforces the opportunity. According to Omdia research highlighted in Microsoft’s blog on the partner revenue opportunity: 88% of partners selling through Marketplace report revenue growth, 75% close deals faster, 69% secure larger deals, 60% agree Marketplace improved their deal structure. The Omdia study found that among partners that sell through Marketplace (compared to direct go-to-market and sales motions), they saw incredible gains with Marketplace. The opportunity is clear. The question is how to capture it consistently. How the AI app and agent monetization checklist helps The time to think about sales is when you’re building, not just when you hit “publish” on an offer. That’s why the Microsoft Marketplace Monetization Checklist for SaaS and Container Offers was created as part of the AI envisioning sessions. It gives your team a structured, practical framework to move from idea to revenue with confidence. A solution can offer immense value, but because monetization decisions are made too late, it can perform worse than expected. Pricing models, packaging tiers, metering accuracy, and subscription flows are often bolted on after architecture is finalized. The checklist changes that. It organizes monetization strategy around the five pillars of the Well-Architected Framework so that revenue design and technical design stay aligned. This checklist is also featured in App Advisor Build and Publish stage, so that you don’t miss a single step along the way. This ensures your offer is: Secure and enterprise-ready, Reliable across subscription lifecycle events, Cost-optimized for margin protection, Performance-aligned to your pricing model, Operationally structured for scale. Instead of guessing, you follow a clear path. Monetizing your offer the right way While designed for Saas and Azure Container offers, this checklist can be helpful for any offer. It guides you through key decisions that directly impact growth: Define your revenue model early during design, not after deployment, Model cost of goods sold against pricing tiers to protect margin, Package plans intentionally (Starter, Pro, Enterprise) to drive upsell, Implement secure licensing and Marketplace API validation to prevent revenue leakage, Optimize trial-to-paid conversion with structured upgrade paths. The checklist also reinforces operational execution with best practices for both SaaS and Azure Container offers. The result: an offer built for revenue, not just deployment. From build to publish to monetization on Microsoft Marketplace Building a great app or agent for your customers is the goal, but scaling your sales helps you grow. You’re not just publishing an offer, you’re building: A pricing strategy aligned to architecture, A subscription model aligned to customer value, An operational model aligned to Marketplace growth. This is how your company can turn Marketplace from a just listing platform into a revenue multiplier. Ready to monetize apps and agents on Microsoft Marketplace? You don’t have to guess how to grow. Use these resources to monetize your app or agent and get world-class Microsoft best practices, curated for you: Download the Marketplace Monetization Checklist, See the opportunity for your revenue growth in App Advisor, Watch sessions with experts by signing up for the AI Envisioning sessions.
