FY27 Distributor Incentives - Few Questions
Dear team, We are a Distributor and need to understand better the mechanics of the FY27 incentives. More specifically, please find below the questions we need to sort the soonest possible: Regarding the growth accelerator, is there any minimum threshold above which we are eligible to receive the 10% rebate or the growth applies even to one new additional licenses? Again, regarding the growth accelerator, the 10% rebates applies only to the new licenses added or to the new total number of licenses following the additions? Example: current config. with 100x ME5. We plan to add 100x more ME5. Will we have to apply the 10% rebate on the new 100x ME5 or to the total 200 ME5? Thank you so much for your clarifications that are crucial for our business planning! Warm regards, NickOptimizing 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 Learn
A note about the FY26 Build and Publish Incentive
For anyone here who is/was Top Tier in FY25: You ARE eligible for the Build and Publish incentive (up to $100k) through 31 December - even though you might have been told otherwise. I mention this here because we were initially told "No, you are not eligible because you still need to have an Azure or industry CSD." Took a wee bit of perseverance, but we broke through the denials and received confirmation yesterday that the incentive is on its way to us. Probably a niche scenario, but please do feel free to message me if you were also told no on this incentive - I'll be happy to share how we got to 'yes.' #marketplacechampions #sponsored
New To The Community
Hello ISV Success Community, As a new member to the community, I decided to start with an introduction. I’m Aubin Bakana, Founder and CTIO (Chief Technology & Innovation Officer) of Baobab Logix LTD, now based in Leeds, UK. I lead technology and innovation, driving solutions that are secure, ethical, and intelligent. At Baobab Logix, we’re building future-ready platforms that empower businesses to thrive. One of our flagship innovations is KeepComm Intel, a next-generation contact center solution that combines AI-driven automation with human-in-the-loop architecture for speed, accuracy, and trust. As a Microsoft Azure Solutions Architect Expert, Harvard CS50 certified, and full-stack developer, I bring deep technical expertise and a vision for sustainable innovation. I’m here to connect, collaborate, and share insights with fellow innovators who believe in shaping technology for good. Looking forward to engaging with this amazing community and exploring opportunities to build impactful solutions together! thank you.Eligible Microsoft Marketplace partners with MCA customers now to benefit from accelerated payouts
Microsoft Marketplace partners transacting with Microsoft Customer Agreements (MCA) customers can now benefit from accelerated payouts. This enhancement is intended to support improved cash flow and greater predictability, with daily payment processing that shortens the average time to receive funds. To learn more about how accelerated payouts work and how to view payouts with transactions for a given month, read the full announcement article. Announcing accelerated payouts to Microsoft Marketplace partners with MCA customers | Microsoft Community HubAnnouncing accelerated payouts to Microsoft Marketplace partners with MCA customers
Co-authored by Trevor_Yeats We’re excited to share that accelerated payouts are now available for partners making Microsoft Marketplace transactions with MCA (Microsoft Customer Agreement) customers. This new capability is designed to improve partner cash flow and make payments more predictable, with daily payouts that reduce the average time to receive funds. How accelerated payouts work Eligible partners will automatically get daily payouts for all offer types (SaaS, VMSR, etc.), pricing models (seat-based, metered), and deal types (public offers, private offers, private plans)—across all markets and currencies supported by Microsoft Marketplace. There is no action required by partners to benefit from accelerated payouts. Daily MCA payouts will show up as separate entries in the payments summary tab of your Partner Center earnings dashboard, right next to your monthly payouts. In addition, you’ll also see a new field called “estimatedPaymentDate” in the Earnings Report. Notes: Partners will not receive accelerated payouts for their very first payment from Microsoft. Accelerated payouts only apply after a partner has already received at least one payout. Partners may experience possible payout delays following a payment instrument change such as a change in bank or tax profile. Partners will continue to receive monthly payouts for EA transactions. Since payout times for EA customers are already compressed, daily payouts are not needed. How can a partner see all the payouts with transactions for a given month? Some partners reconcile their payouts monthly and would like to see all the payouts with transactions for a given month. Here’s how to do it: Option 1: Select custom dates Go to the Earnings Report In the upper right corner, you can filter by time period. Select “custom” and enter the start date and end date for a given month. Now you will be able to see all payouts with transactions for a specified month. Then select “Apply” in the bottom left. Note: this only shows customer transactions for the month you have selected. Option 2: Search for the first three letters of a month in Payment ID Go to the Earnings Report In the upper right corner, you can filter by payment ID. Type in the first three letters of a month and hit search. For example, for September, type in “sep” and you will be able to see all payouts with transactions for a specified month. Make sure you select the correct payment year. Then select “Apply” in the bottom left. Once you have applied filters, you can download the report. In the Earnings Report, select “Download Report”. Then select “Earnings – Marketplace” and you will be able to download a report with your custom filters. How to get started in Microsoft Marketplace Any company who is part of the Microsoft AI Cloud Partner Program can sell on the marketplace and benefit from accelerated payouts. 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 and sell private offers as needed. 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: Payout schedules and processes - Marketplace publisher | Microsoft Learn https://learn.microsoft.com/en-us/partner-center/marketplace-offers/payment-thresholds-methods-timeframes#number-of-days-for-payments-to-reach-payout-accountMicrosoft 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 Hub
