Announcing 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 Partner Center account structure: Best practices for long-term success
About the author: David Starr is the founder and CEO of Cumulus26, where focus is on accelerating customer's Azure Marketplace journey from onboarding to business success. He is a former Principal Architect at Microsoft working on Azure Marketplace and a 6-time Microsoft MVP in Developer Tooling. Why account structure matters in Partner Center When first creating a Partner Center account, many Software Development Company (SDC) partners I’ve worked with dive straight into creating their transactable offers without first considering how their accounts are structured. This often leads to confusion about account setup, creating multiple “orphan” accounts, and support incidents that can delay the publication of your software to the Microsoft Marketplace--or even result in losing access to Partner Center. This article examines Partner Center account structures and the primary decisions to make when setting up your company’s accounts in the portal. We’ll cover the following. Initial considerations: Individual accounts. Understanding organizational account structures and configurations. Working with important identifiers used in account management and support scenarios. Setting up for long-term successful management of your accounts. This article ensures you’ll know how to structure your Microsoft Partner Center account so that it supports your organization’s needs today and can scale with you as you grow. Understanding Partner Center account management After initially creating your account, it’s tempting to skip user management and move on to other tasks in the portal. This can lead to the common mistake of failing to assign multiple account administrators right away. The predictable outcome is that if an account administrator leaves your organization, your staff could lose the ability to administer-- or even access-- Partner Center. This may sound intuitive upon reading it, so why mention it? It’s because I have worked with many publishers who failed to do this and were later unable to get the access they needed. This leads to time spent resolving support incidents, which can delay publishing your solution. Before diving into setting up an account, it’s helpful to understand there are three different accounts involved: Microsoft accounts, Azure Entra ID accounts, and Partner Center accounts. Although, the Microsoft account is essentially an extension of the Azure Entra ID account. In short, you must have an Azure Entra ID account to have a Partner Center account. These account types are shown in the image below. Each has its own features and capabilities. It is worth noting while you do need an Entra ID account, you do not need an Azure subscription, which allows creation of services like databases or virtual machines. This can be an important point for Azure administrators who provide accounts strictly for use with Partner Center. Setting up an Azure tenant in Partner Center Azure accounts for your organization are stored in tenants, which provide identity, security, and account management through Microsoft Entra ID. At least one tenant must be associated with Partner Center to manage the portal’s accounts. This allows those with accounts in the tenant to also have accounts in Partner Center. You may associate a pre-existing Entra ID account with Partner Center, or you may create one if needed. Regardless of which technique you use, you can manage users and permissions for Partner Center after configuring your tenant. User accounts After configuring your tenant, head over to the user management screen in Account settings, then select User management in the left side menu. As we mentioned earlier, the next account you’ll want to configure is another Global administrator. If you created the Azure tenant you are working with, you already have Global Administrator permissions in Partner Center. Otherwise, you may need to contact your Azure administrator to get the permissions you need. This is why it’s common (and good) practice for organizations with pre-existing Azure tenants to have an Azure administrator initially set up Partner Center. Adding another Partner Center administrator For this next step, there are three options for adding that new person to Partner Center: Create new user – Used if there are no other user accounts in the tenant. Add existing user – Use this if there are existing user accounts in the tenant. Invite outside user – May be used for inviting someone from outside your organization to manage Partner Center for you. Regardless of which method you choose, since you are adding a second Global administrator, give them that role during account setup. This is the first role listed in the account setup process as shown here. Configuring partner global and location accounts Now that you have at least two global administrators, you can turn your attention to setting up your organizational accounts. There are two types in Partner Center. Partner global account (PGA) Partner location account (PLA) Structuring your accounts There is one PGA per SDC and one or more PLAs. A PGA is an overarching account containing contact and other information for your organization. Each PLA account represents a different location for the organization. A single PLA is created when you first create a Partner Center account. This may be enough for some organizations, but for many SDCs it’s a good idea to consider how you will organize the company and its products in the future. See the image below for a typical example of PGA and PLA structures, the information associated with them, and their roles. Some organizations may want multiple PLAs to represent different sales centers or divisions within the SDC. It’s also a good idea for smaller SDCs to consider future growth at this stage. Think about how and where your company may eventually do business. However, you do not need multiple PLAs to sell your solution in multiple countries--you can sell worldwide even if you have only one PLA. Both PGAs and PLAs have unique identifiers, examples of which are shown in the below image. You may need to access these when working with Microsoft. To do so, go to: Account Settings > Identifiers > Microsoft AI Cloud Partner Program Managing publisher accounts and identifiers Each PLA has one or more publisher accounts, which are established when enrolling in the Microsoft Marketplace program. Each publisher also receives its own set of identifiers, and it’s common to be asked for these in customer support scenarios. When creating a new publisher, you get to specify your publisher account’s primary ID, but a second Seller ID is automatically assigned for you. To access publisher IDs, visit: Account settings > Identifiers > Publisher Tax and payment profiles-- used by Microsoft to bill on your behalf and to pay you for customer purchases-- are associated with publisher accounts. Publisher accounts are sometimes used by different billing departments or to organize products into logical groups. See the image below for a typical example. As you can see, the account structure is straightforward. If you consider it in advance of setting up Partner Center, you will be more likely to avoid configuration mistakes and be set up well for future growth. Organizing offers and plans for marketplace publishing We’ve seen how to structure user and organizational accounts to ensure a great Partner Center experience. When it’s time to set up your products to sell in the marketplace there are two more entities involved, offers and plans. Offers represent your base software product and plans are used to sell one or more SKUs of the product. For example, Cumulus26’s AMPup solution for marketplace publishers may be our offer, and has different plans for team, professional, and enterprise versions. To support global software sales, each plan is associated with one or more global markets. For example, a US-based publisher may sell software in Canada, the UK, and Germany. Selling markets are designated for each plan. Of course, each offer and plan receives its own ID. For each, you must specify the ID as you create each entity, and I recommend planning a logical naming convention for these IDs as you may need to navigate marketplace features using them at some point. Now you have a complete picture of Partner Center structures from PGAs all the way to plans as shown in the image below, which represents a single-region seller. This turns out to be the most common Partner Center account configuration due to its simplicity and the needs of most SDCs. Conclusion: Building for scalability and support There is a strong relationship between Microsoft Azure Entra ID and Partner Center accounts. For many SDCs the simplest path to successful user management is to start with an Entra ID Global Administrator setting up your initial Partner Center account. Don’t forget the important first step of adding a second Partner Center account administrator. You are now ready to model your organization and products in Partner Center, from PLAs and PGAs to offers and plans. You also understand the ID structures of each entity. You can refer to this article for help on where to find them when needed. With a solid understanding of Partner Center user and organizational account structures, you are ready to begin configuring your users and organization in Partner Center. To learn more and ask questions, attend the How to structure your Microsoft Partner Center account for long term success | Microsoft Community Hub session on November 4th. If you are unable to attend, the session will be recorded for viewing after.Welcome to the FY26 Q1 Partner Digest!
Stay up to date on the latest Microsoft Marketplace news, tools, and resources to help you grow your business. Subscribe to the Partner Digest label to never miss an update. 🚀 Noteworthy Highlights Introducing Microsoft Marketplace: Growth starts here. Turn your agents and other cloud-based innovations into sales, at scale, with Microsoft Marketplace. Learn more Updated Agreement: The Microsoft AI Cloud Partner Program Agreement has been updated, effective September 22, 2025. Review now Partner Center Security: Multifactor authentication (MFA) is now required for Partner Center access. API enforcement beings April 2026. Learn more App Advisor Enhancements: Six new features help software developers build, publish, and sell apps faster and smarter on the Microsoft Marketplace. Explore now Fabric Extensibility Toolkit: Software companies can help customers bring apps to Fabric, speed development, and integrate workloads. Get started today Azure AI Foundry Updates: Now featuring GPT-5, OpenAI gpt-oss, Foundry Local support, and a new Browser Automation tool to help you build intelligent agents using natural language. Learn more Partner Center AI assistant: Now localized and smarter than ever with support for additional languages, providing quick answers to your day-to-day questions. Learn more Microsoft AI Cloud Partner Program Concierge: Your go-to resource for all program related desk engagements, streamlined and more impactful than ever. Learn more 🌟 Microsoft partner resources: New for FY26 MCAPS Start recap Microsoft kicked off FY26 with a bold vision for partner growth in the AI era. Nicole Dezen outlines how partners can lead with innovation and scale impact. Explore strategic solution areas, expanded MAICPP investments, and GTM support.👉 Read the full post New benefits & resources New AI-powered benefits and tools are here to help partners thrive. Julie Sanford details how to get Azure credits, Copilot seats, and custom GTM materials to accelerate agentic AI adoption.👉 Read the full post Blog Series & Playbooks: Catch up on our Cloud and AI Platforms blog series. Part one: Capturing the market opportunity Part two: Migrations & Modernizations Explore the latest Cloud and AI platforms and Agentic AI partner playbooks which includes key skilling resources, investments, win formulas and more. Unlock your Microsoft AI Cloud potential with Partner Skilling Hub: Visit our skilling hub for the latest training resources to earn designations and specializations. Explore the most recent skilling blog for key skilling-related announcements. Incentives ISV Success Advanced Package: Top-performing partners with Certified Software Designations can qualify for financial incentives to build AI solutions or migrate customers to Azure. The package supports every stage of ISV Success. Learn more. Migration Incentives: New end-customer migration incentives are now available to help software companies and advanced specialized system integrators securely and efficiently move software companies’ end customers to modern applications running on Azure. See Azure Incentives > ISV Engagements tab in the incentive guide for details. 🗓️ Events & Office Hours June-September recaps June: The Microsoft Marketplace Ecosystem Opportunity Explore how AI is reshaping solution development and customer engagement in this conversation with Cyril Belikoff, Microsoft’s new leader for Marketplace. Learn how the marketplace is simplifying procurement and accelerating growth. A “lightbulb moment” for the industry and the critical role partners play in delivering innovation on Microsoft’s platform. 👉 Watch the recording July: Marketplace Rewards FY26 Learn how channel partners can benefit from multiparty private offers and new rewards tier thresholds to unlock $200K in sponsorship. 👉 Watch the recording August: Co-Sell Blueprint & Certified Designations Gain real-world co-sell strategies and learn about Microsoft’s Customer Engagement Methodology from industry experts. Plus, get the latest on Certified Software Designation benefits for FY26. 👉 Watch the recording from Ultimate Partner session on Co-sell 👉 Watch the recording on Certified Software Designations and download the slide deck 📖Explore Microsoft Customer Engagement Methodology (MCEM) September: Migrate and Modernize Summit Our Sep 23-24 event is now available online to help services partners learn how agentic AI can boost their agility by moving to the cloud quickly and effectively. Catch the replay. Upcoming Events Microsoft AI Tour for Partners is back- Join a free, one-day event to accelerate your AI journey with sales best practices, growth opportunities, hands-on labs, and technical deep dives. Discover upcoming events in cities around the globe. Join the Fabric Global Hack (Sept 15–Nov 3, 2025) to build data and AI solutions with Microsoft Fabric, collaborate globally, and compete for prizes up to $10,000. Participants get 50% off Fabric certifications. Join us at the Azure Dev Summit from October 13-15, a Microsoft-sponsored event designed for developers, architects, and technology leaders. Explore the latest in Azure, .NET, and Microsoft AI, gain insights from inspiring speakers, and connect with peers driving innovation. Participate in AgentCon 2025 by Global AI Community—a global series of one-day conferences designed exclusively for developers building the future with autonomous AI agents. 🔥 Microsoft Ignite 2025 Microsoft Ignite 2025 will empower you to get the edge you need to drive impact in the era of AI. Join us in San Francisco or attend virtually from November 18-21 to bolster your knowledge, build connections, and explore emerging technologies. Hear from Microsoft executives and other leaders on their vision for AI. Explore the latest in Cloud and AI platforms, AI business solutions, and Security. Celebrate the winners and finalists of Partner of the Year Awards 👉 Register now and stay up to date with event news at Microsoft Ignite Unplugged. __________________________________________________________________________________________________________________________________________________________________ Stay tuned to the https://techcommunity.microsoft.com/t5/marketplace-blog/bg-p/MarketplaceBlog for upcoming recaps and new office hour announcements. 💬 Share Your Feedback! We truly appreciate your feedback and want to ensure these Partner Digests deliver the information you need to succeed in the marketplace. If you have any feedback or suggestions on how we can continue to improve the content to best support you, we’d love to hear from you in the comments below!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-FAQsJoin us at Microsoft's campus for the Ultimate Partner LIVE event!
The countdown is on - Ultimate Partner LIVE in Redmond, WA on May 1st – 2nd is fast approaching, and you won’t want to miss it! This is the event for connecting with Microsoft executives, partners, and industry experts driving ecosystem growth and shaping the future. Join us as we take over the iconic Microsoft Conference Center for two action-packed days. It’s your opportunity to engage directly with Microsoft leaders, learn from expert panel discussions, immerse yourself in hands-on workshops, and experience a targeted partnering experience. Microsoft’s ongoing support of Ultimate Partner, along with its sponsorship of the Ultimate Partner LIVE event, highlights the importance of ecosystem-led growth. A special thank you to all the Microsoft leaders below who plan to take the stage and those who coordinate behind the scenes to make this event a success. Over 30 industry-leading speakers and award-winning partners will grace the stage and share insights that will shape the future of cloud go-to-market strategies. The two-day agenda will cover topics such as: Prepare Your Microsoft Business for FY26 The Marketplace Ecosystem Opportunity The State of the Marketplace Ecosystem Microsoft’s AI & Software Vision Forging the New World of Data & AI Defining the Marketplace of the Future for SMBs The Power of Partnerships: Building AI Together Perspective of a Microsoft Marketplace POTY Award Winner Embracing Change and Pivoting for Success Acre of Diamonds: How to Leverage the Opportunity with Microsoft Unlocking the Opportunity Through Ecosystem Thinking The Partner Perspective for Ecosystem Thinking Future of Distribution Co-Selling Journey Celebrating Microsoft: 50 Years of Tectonic Shifts And more! Why This Event is Critical: We are standing at a pivotal moment: AI is advancing faster than most organizations can keep up with. Accelerate Microsoft FY25 Q4 priorities and understand FY26 opportunities. Microsoft Marketplace is poised for explosive growth. Go-to-market success now demands tighter alignment and precision from partners than ever before. Why You Can’t Afford to Miss This Event: Exclusive Access to Microsoft Decision-Makers The executives setting the agenda for FY26 will be in the room. You’ll gain clarity on FY26. Nicole Dezen, Chief Partner Officer & CVP Global Partner Solutions will kick us off, and you will hear from leaders across the Software, Services, Reseller, Marketplace, and Sales Organizations. Know exactly how to align your business, resources, and messaging to what Microsoft actually cares about this fiscal year. Interactive Workshops to Sharpen Your Skills How to co-sell smarter with Microsoft How to design GTM plays that convert How to win with commercial marketplace motions With Industry Experts like Reis Barrie, CEO of Carve Partners, John Jahnke, CEO of Tackle.io, Sam Gong, SVP Marketing at WorkSpan, Rebecca Jones, Chief Growth Officer of Bridge Partners, Erin Figer, Founder of Core Consulting, and leaders from The Partner Masters, Suger and more hosting immersive workshops, be prepared to learn and implement. Proven Frameworks for Delivering Results Vince Menzione will share his 7 Principles of Successful Partnerships—developed from working with top-performing partners across the ecosystem. Other experts will share frameworks for marketplace, co-selling, GTM, and more Networking Opportunities to Accelerate Your Business This will be a curated executive room where you'll connect with partner leaders, advisors, and Microsoft stakeholders in high-trust conversations that spark real opportunities. You’ll leave with a tighter, more strategic network—and future deals in motion. An Intentionally Designed Experience with Real-World Impact Every detail of this event—from the location in Redmond to the experience design—is built to support meaningful conversations, clarity, and action. What People Say: “What an incredible experience at the Ultimate Partner Live Executive Summit. Two days packed with relationship building, business growth, and learning – it felt like months of progress compressed into 2 days.” Steven Karachinsky, CEO at Ziro “Really loved the vibe and amazing conversations with the partners at the Ultimate event! I think you absolutely have the right formula to create impact for the entire ecosystem with such a gathering.” Sandy Gupta, VP, Ecosystems of Global Software Companies at Microsoft “The event was informative, insightful, and inspiring. Your ability to put into words the tectonic shift we are all experiencing is refreshing! Thanks for being the trailblazer by providing thoughtful content and curated partner experiences. We have all been craving this for so long.” Regina Manfredi, EVP, General Manager at Crayon Group US “Attending this event was like striking gold 🙂 As a startup founder focused on co-sell and partnership, the validation and insights I gained at this event were invaluable; the future of partnerships and alliances is clearly bright. Vince Menzione, you are truly a powerhouse, and I wish you continued success! Most importantly, thank you for streaming the entire event, was truly incredible.” Archana Vadya, Founder & CEO at PartneRite “A big shout out to Vince Menzione for bringing this scale event (Ultimate Partner LIVE in Dallas) to life! It was a mega effort, and the results were amazing. Just look at the abundance of LinkedIn posts! It was an absolute pleasure sharing the stage with so many incredible speakers and colleagues from Microsoft and several of our partners like WorkSpan, Carve Partners, BDO, EY, Archive360, Sage, PartnerTap.” Kevin Peesker, (former) President, SMC - Small, Medium, Corporate Business at Microsoft This will prove to be the most valuable two days for your business in the first half of 2025. Ultimate Partner LIVE is a premium, focused, two-day immersive experience that will equip you with the tools and insights to lead through change and drive measurable results in FY26. Register now and use code ULTIMATEVIP50 at checkout for an exclusive discount.Meet customer business needs with flexible billing schedules in the marketplace
Co-authored by Trevor_Yeats Today, we’re announcing that Microsoft now offers flexible billing schedules through private offers to better align with customer needs. Flexible billing schedules are available globally to all marketplace-supported currencies. Watch these demo videos to learn more about flexible billing schedules. The value for your customers and for you With flexible billing schedules, customers can buy with confidence knowing that private offers can be customized for virtually any contract value and billing timeline to align with their requirements. Partners can tailor customer private offers and multiparty private offers to meet those requirements. This streamlines sales and accelerates deal velocity. With over 100 partners in our private preview, we’re excited to make this capability publicly available. Many of these partners have achieved remarkable success, closing deals worth millions of dollars. “Flexible billing in Microsoft marketplace has significantly improved how our sales teams engage with customers. It allows them to meet each organization's and customer's procurement needs, whether it's aligning with fiscal year budgets or accelerating project timelines from evaluations to implementations. Additionally, it helps with managing cloud commitment benefits. This flexibility has made it easier for our customers to purchase and deploy solutions faster, without waiting for specific budgets to become available. We can now set up flexible billing schedules to accommodate their needs.” Brett Ferancy, Global Alliance Leader, Abnormal AI Example use cases See below for some real-world examples of how partners and customers are leveraging flexible billing. Variable pricing with specific dates. In this example, the customer pays a setup fee at the start of billing, followed by variable pricing throughout the contract to match consumption patterns and budget cycles. 3-year deal $80M total Notes Immediate charge when billing starts $2M Setup fee – 1 st month 01 Jan 2025 $5M Year 1 installment #2 15 Jul 2025 $3M Year 1 installment #3 01 Jan 2026 $10M Year 2 installment #1 15 Jul 2026 $10M Year 2 installment #2 01 Jan 2027 $20M Year 3 installment #1 15 Jul 2027 $30M Year 3 installment #2 Variable quarterly billing. In this example, the customer pays a setup fee at the start of billing, followed by variable pricing each quarter. 1-year deal $10M total Notes Immediate when billing starts $2M Q1 01 Jun 2025 $3M Q2 01 Sep 2025 $2M Q3 01 Dec 2025 $3M Q4 Delayed start for billing. In this example, the customer gets the first two months free, followed by varied payments throughout the contract to match budget cycles 2-year deal $25M total Notes Immediate when billing starts $0M Free – 2 months 01 Mar 2024 $10M Year 1 fee 15 Jan 2025 $5M Year 2 installment 1 01 Jul 2025 $10M Year 2 installment 2 How it works To start using flexible billing for private offers: The software partner creates a private offer in the marketplace. Currently flexible billing supports SaaS flat rate offers, VM software reservations, and professional services. Partner must choose “Customize SaaS plans and Professional Services” or “Customize VM software reservations” when creating a new private offer. On the configure pricing page, under “billing frequency,” the partner will select “flexible schedule when the contract duration is 1-year or greater.” The software partner creates the billing schedule with up to 70 installments up to $100,000,000 USD, or any of the currencies supported by marketplace, over the length of the deal. There is also an option to book an immediate charge when billing starts or delay the first charge to a date in the future. Private offers can have up to ten included product plans. Each plan has its own billing frequency and may include a unique flexible schedule. A flexible schedule does not apply to all plans included in the private offer and must be set up independently. The software partner can also create a schedule in their customer’s local billing currency using the market pricing template. The customer accepts and purchases the private offer with the flexible billing schedule. For a multiparty private offer, the process is the same except: The software partner sends the private offer to the channel partner. The channel partner adds their price adjustment percentage aligned to the flexible billing schedule and passes it to the customer. Eligibility Any company who is part of the Microsoft AI Cloud Partner Program can sell on the marketplace through private offers with flexible billing. 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 offer Sell private offers with flexible billing 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 for tools and resources that help them publish their solution and maximize its reach on the marketplace. Get started with flexible billing on marketplace We invite you to start leveraging these new improvements to flexible billing today. Learn more by visiting aka.ms/flexbill-docs.The Marketplace Partner Digest | March 2025
Welcome to the monthly partner release notes for the Microsoft commercial marketplace! The marketplace is central to how we help you reach more customers, simplify sales, and unlock growth. Dive into this month’s roundup of announcements and updates to stay informed about the latest marketplace developments. Don’t miss an update! Subscribe to the “Partner Digest” label to get notified whenever a new Marketplace Partner Digest hits the community blog. Check out this community post for how-to guidance on configuring your settings. 🚀 Noteworthy Highlights ICYMI: Marketplace fiscal year closes May 31, 2025! Reminder that Microsoft offers a 50% reduced agency fee for all renewals done through private offers. This fee reduction automatically applies when you claim either an existing marketplace agreement or an off-marketplace sale as a renewal in Partner Center. This helps you maximize your margins—no extra steps required—while maintaining strong customer relationships. Resources: For steps on how to receive the discount, check out the documentation. Improvements to App Advisor App advisor is a self-serve, always-on tool that provides curated guidance, resources, and benefit information right when you need it, after answering a few questions. We’ve launched an improved version of App advisor—now available in the US, with a global rollout coming soon. This update provides a more intuitive and streamlined experience, ensuring you can easily get guidance within a user-friendly interface. Explore the updated App Advisor tool and take the guesswork out of getting your app to market. 🌟 ️Partner Resources Discover exclusive resources aimed at helping you get the most out of the marketplace! Explore these helpful resources, blogs, and much more below: Partner blog series: Capturing the marketplace opportunity by selling path Check out the first two blogs of a four-part series, where we break down how to maximize your marketplace opportunity across different selling paths: Part one: Discover how making the marketplace a core part of your go-to-market strategy can help you close deals faster and increase deal sizes. Read it now Part two: Learn how always-on selling with the digital self-serve motion can help you grow your sales pipeline. Read the blog. There’s still more to come! Stay tuned for the final two blogs coming in April and May, in which we’ll share tips and strategies to maximize success when selling with partners (through multiparty private offers and CSP private offers) and with Microsoft field sellers. New Co-sell Coaching series launching on April 2 Join us for the new marketplace Co-sell Coaching, where Microsoft partners will walk you through their best practices on how to co-sell effectively through the marketplace, and host a live Q&A along with Microsoft co-sell subject-matter experts. In the first event in this series featuring Carve Partners, you will learn how to get started the right way, unlock faster growth, maximize your impact, engage Microsoft sellers, and more. Register here. Mastering the Marketplace webinars Whether you’re new to the marketplace or focused on growing sales, our Mastering the Marketplace webinars cover a broad range of business and technical session topics to help accelerate your marketplace success. Check out these upcoming webinars, register, and mark your calendars. All times are listed in Pacific Time. March 25, 9:00 am: Developing your virtual machine offer March 26, 9:00 am: Developing your container offer March 27, 9:30 am: Get your SaaS transactable offer on Azure Marketplace in two weeks April 1, 9:00 am: ISVs - Learn how to use the multiparty private offers campaign in a box April 2, 9:00 am: Creating your first offer in Partner Center April 7, 9:00 am: ISV to CSP private offers - experience walkthrough For the complete MTM schedule, visit aka.ms/MTMwebinars. April customer office hours Invite your customer to our next office hours on April 30 at 8:30 am PT, the marketplace team will walk through new marketplace functionality that helps further streamline financial operations to help organizations be more efficient. We’ll also dive into new private offer enhancements in flexible billing and more that help safeguard organizations from shadow IT while fueling innovation. Register here. Channel partner office hours: New marketplace assets and ask the experts Q&A Join us on March 27 at 8:30 am PT to explore new marketing and product assets designed to help influencers and decision-makers better understand the Microsoft commercial marketplace. We’ll also discuss how to use the Modern Procurement Playbook to navigate the procurement process when closing your marketplace deals. Register here, and submit your questions in advance when registering. Pre-submitted questions will be addressed in the Q&A portion at the end of the event. ⏰ Recent & Upcoming Events Catalyst 2025 The Microsoft commercial marketplace team will be at the Catalyst conference, hosted by Partnership Leaders in Seattle on May 13 – 15, 2025. Join Jason Rook, Sr. Director of Product Marketing, for a conversation about the value of the marketplace and learn how to activate the channel opportunity. Register here. Microsoft Build 2025 Mark your calendars! Microsoft Build returns to Seattle on May 19 – 22, 2025. Visit the event page to sign up for registration notifications and to receive the most up-to-date information about the event. 💬 Share Your Feedback! We truly appreciate your feedback and want to ensure these Partner Release Notes deliver the information you need to succeed in the marketplace. If you have any feedback or suggestions on how we can continue to improve the content to best support you, we’d love to hear from you in the comments below! Thank you!Expand your business with ISV to CSP private offers in the marketplace
The insights shared in this webinar ("ISV to CSP private offers - experience walkthrough") shed light on how these resources can significantly contribute to growing your sales with the partnerships between ISVs and partners in the Cloud Solution Provider (CSP) program through the commercial marketplace. According to recent research from Canalys, software sales through hyperscaler cloud marketplaces are predicted to reach US$85 billion by 2028 Most importantly, channel partners are playing an increasingly important role, and Canalys expects more than 50% of marketplace sales to flow through the channel. Independent Software Vendors (ISVs) and CSP partners have a unique opportunity to collaborate and unlock the potential to sell to small and mid-sized customers. For ISVs, by partnering with the CSP partners, ISVs can scale effectively to sell and reach customers and reach new markets globally based on the CSP partners customer- base. For CSP partners, you can expand your portfolio instantly leveraging our comprehensive marketplace catalog and meet your customers’ needs in an agile way by packaging your solutions and services across the Microsoft first party solutions and the ISV solutions through our marketplace. ISV to CSP private offers empower ISVs the ability to scale and unlock repeatable revenue opportunities with partners in the CSP program via the marketplace. ISVs can collaborate with CSP partners and effectively share margins using CSP private offers through the marketplace. Using ISV to CSP private offers, ISVs can specify the margin and duration to create a wholesale price for your partners enrolled in the Microsoft CSP program as Direct Bill partners or Indirect Providers. When your CSP partner makes a sale to a customer, Microsoft makes its payments to you off the wholesale price after applying the standard commercial marketplace agency fee. As a CSP partner, you can discover all the margins available to you via Partner Center portal or API. For any sales you make through the marketplace, you receive your bill from Microsoft. You can continue to set your customer price and invoice your customer outside of the marketplace. Please see an example flow below and learn more about the CSP partner experience with private offers at Discover margins configured by ISVs. Any partner who meets the following criteria can participate in partner-to-partner selling through our marketplace using CSP private offers. ISV CSP Required Enrolled in the Microsoft commercial marketplace Must have a transactable offer with public plan(s) available to participate in ISV to CSP private offers. (no free/contact me, BYOL, on-prem, HW or professional services offers) Have target CSP partners to sell with Direct Bill or Indirect Provider partners in the CSP program Ability to manage customer pricing, billing, etc., which needs to be handled by the CSP partner outside of the Microsoft commercial marketplace Manage target customer(s)’ Azure Plan and CSP subscription(s) Have target ISVs to sell with and willing to share margins Optional The publicly transactable offers can be opted into CSP to be resold to all or specific CSP partners To get started, ISVs and CSP partners can follow these best practices: define your strategy, identify target partners and offers, develop compelling go-to-market plans, engage with target partners, and continuously monitor and optimize your performance. By doing so, you can effectively scale your business and achieve success in the marketplace. ISV CSP Define strategy and identify target partners/offers Define your channel strategy via marketplace: Transactable public offers Target customers and partners Channel sales GTM and margin strategy Define your marketplace strategy and target ISVs and offers Connect with target ISVs and align on GTM plan, support, etc. Define seller enablement strategy Understand how ISVs selling with CSPs in the marketplace works Reseller your offers though CSP partners Marketplace Insights reporting Payout schedule Understand CSP marketplace overview Get ready for operational process Enable ISV to CSP private offers process and start to sell with margin sharing ISV extends margins to CSP partners using ISV to CSP private offers CSP partners can receive margins from ISVs through the ISV to CSP private offers For the CSP partners, our approach is to provide a consistent experience across Microsoft 1st party solutions and marketplace 3rd party solutions from ISVs, helping simplify your operational processes. CSP partners can leverage APIs or the Partner Center and Azure portal user experiences to streamline operations and enhance efficiency. Each option comes with its own set of benefits and considerations, enabling CSPs to choose the approach that best aligns with their business model, providing flexibility. To access the recent webinar on this topic, please visit this link. For more information or to learn about additional webinars, please visit aka.ms/CSPPO, aka.ms/CSPPO_FAQ, and aka.ms/masteringthemarketplace .
