Navigating Azure Co-Sell & IP Co-Sell: Decoding the Differences

There is a lot of buzz about "co-selling" within the Azure ecosystem. Despite all the jargon, are we really clear on its nuances?

When you list on the Azure marketplace via the Microsoft Cloud Partner Program, you unlock access to digital sales motions, strategic account planning services, and the chance to work alongside Microsoft's top sellers. You will receive additional benefits and incentives as this Microsoft partnership deepens, with benefits all designed to help you grow your business.

The terms "co-sell" and "IP co-sell eligible services" can be confusing. Let's clarify and examine these terms in greater detail.

Demystifying the Co-Sell Lingo

Let's talk about in market, co-sell ready and IP co-sell eligible statuses.

Most ISVs want to be IP co-sell eligible for the following reasons:

• Partner with Microsoft sellers on net new deals and accelerate existing pipeline

• Simplify and speed up procurement by transacting through the commercial marketplace

• Tap into Microsoft customers' pre-committed budget to speed up sales cycles and also retire Microsoft seller quota

We'll talk about these benefits in depth in our next post. For now, for example, here are what these statuses really mean:

In market

Your solution is published and live on at least Azure Marketplace (for IT professionals and developers) or Appsource (line of the support services team for business users)

• Have a PartnerID (formerly MPNID) and an active commercial marketplace account in Partner Center.

• Have a complete business profile in Partner Center.

• Publish the offer on the commercial marketplace.

Co-Sell ready

This is the first tier of business co-sell readiness. Your business solution must already be In Market (see above).

Achieving this status requires:

• Your offer or solution to be live on Azure Marketplace or Appsource (In Market)

• A sales contact for each geography you are interested to co-sell in

• Details and assets for your co-sell ready offer

Note: Offers routed through Azure's commercial marketplace developer program in Partner Center qualify for this status, given they meet the co-sell ready criteria to manage co sell opportunities. However, Microsoft Office apps/add-ins (like those for Outlook, Teams or Excel) don't qualify for co-sell ready status.

This is where most ISVs stop!

Don't be a statistic. You need to take this last critical step in order to actually "co-sell" with Microsoft

IP Co-Sell Eligible

Once you have achieved co-sell marketing program readiness, you must meet the following requirements in order to qualify for IP co-sell status:

1. Hit a revenue benchmark: $100K of Azure consumed revenue (ACR) over a trailing twelve month (TTM) period - this is at the organization level (not solution level).For transactable offers in the commercial marketplace, a billed revenue of $100K over a trailing twelve month period will allow you to meet this requirement

2. Undergo and pass the Microsoft technical validation for Azure-based solutions. 50% of your solution must be on Azure.Bonus: transactable Azure VM, Azure application solutions and Azure Container offers on the commercial marketplace automatically meet this requirement

3. Submit a reference architecture diagram for Microsoft's review (not required for Azure App, Azure Containers, Azure VM and IoT edge offerings)

4. Have a transactable marketplace offer on the commercial marketplace

For solutions that were IP co-sell eligible in FY23, you have till the end of December 2023 to get a transactable offer in the commercial marketplace.

Final Thoughts

Navigating the intricacies of Microsoft's co-sell ecosystem, particularly within the Azure framework, opens up a myriad of opportunities for businesses and Microsoft partners alike. Achieving co-sell readiness and IP co-sell eligibility unlocks collaborative engagements with Microsoft sellers, tapping into pre-committed budgets, and accelerating sales cycles. Understanding the distinctions between "in market," "co-sell ready," and "IP co-sell eligible" statuses is crucial for optimizing your co-selling and position within the Microsoft commercial marketplace. Building demand through marketplace-led commerce, strategic sales planning, and effective co-sell strategies is key to thriving in this partner-centric ecosystem. Stay updated on co-sell opportunities, manage them efficiently, and collaborate seamlessly within the partner ecosystem to deliver value to enterprise customers. As Microsoft partners, exploring co-sell opportunities, managing co-sell opportunities, and strategizing co-sell approaches with other partners are essential steps towards successful marketplace-led commerce within the Microsoft ecosystem. The IP co-sell eligible status, achieved through a structured co-sell strategy, enables a partner-to-partner-led collaborative engagement, addressing customer needs and delivering a marketplace-led commerce experience for mutual benefit with Microsoft sales teams and Azure IP co-sell solutions. The first step is to create a private and transactable co-sell eligible offer, signifying your commitment to the co-selling opportunities provided by the Microsoft commercial marketplace.

Not sure how to deploy a transactable offer? We can guide you - contact us to get started.

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