Breaking Down the Microsoft Azure Consumption Commitment (MACC)
If you sell software in the Microsoft ecosystem, there’s a good chance you’ve heard the phrase Microsoft Azure Consumption Commitment (MACC). But what does it actually mean, and why does it matter so much for independent software vendors (ISVs)?
In short, MACC is one of the most powerful incentives driving enterprise software purchases today. It’s how customers use their Microsoft Azure commitment to buy cloud services and third-party SaaS products listed in the Microsoft commercial marketplace. For ISVs, that means deals can close faster, with fewer procurement hurdles, and often at higher values.
It’s also a key driver in a modern Cloud GTM (Go-to-Market) strategy, helping software companies align with cloud providers, simplify enterprise buying, and accelerate revenue through cloud marketplaces.
Let’s break down how MACC works, what ISVs need to qualify, and how it can work for you.
What is the Microsoft Azure Consumption Commitment?
The Microsoft Azure Consumption Commitment (MACC) is a pre-agreed spend commitment that enterprises make directly with Microsoft, usually over one or three years. It’s essentially a cloud budget that the company promises to spend within the Azure ecosystem.
That budget can be used on:
- Azure services (compute, networking, storage, AI, and more)
- Microsoft products (Power Platform, Dynamics, and others)
- Eligible third-party solutions purchased through the Azure Marketplace
When an enterprise uses its MACC funds to buy an ISV product on marketplace, that spend counts toward its Microsoft Azure commitment, a process often referred to as “MACC burn down.”
In other words, the customer fulfills its Azure contract, Microsoft drives cloud usage, and the ISV lands a deal faster.
How enterprises use committed budgets through marketplace
Imagine a large enterprise with a three-year, $5 million Microsoft Azure Consumption Commitment. If it buys your SaaS product through Azure Marketplace, that purchase draws directly from its existing Azure budget.
Why this matters for buyers:
- Simplified procurement: Microsoft acts as the reseller, so they don’t have to onboard you as a new vendor.
- Consolidated billing: All costs appear in their Azure invoice, which makes spend tracking easier.
- Budget alignment: Using their MACC funds means they are not requesting new capital, only using what is already committed.
For sellers, that means your marketplace listing becomes an on-ramp to enterprise budgets that are already approved and waiting to be spent.
Learn more about how to drive revenue through Azure Marketplace and how enterprises apply committed spend through private offers.
Why MACC matters for ISVs
When you’re building a marketplace strategy, the Microsoft Azure Consumption Commitment is a competitive advantage.
Here’s why:
- Faster procurement: Deals close faster when customers use pre-committed Azure spend.
- Larger deal sizes: MACC funds often drive multi-year or enterprise-wide purchases.
- Alignment with Microsoft sellers: Field reps are incentivized to help customers burn down MACC budgets using partner solutions.
- Increased visibility: MACC-eligible solutions appear in Microsoft’s internal seller tools, which helps your offer get discovered.
If you are new to listing or co-selling, explore Tackle on Azure Marketplace for insights into how ISVs can accelerate co-sell alignment and unlock enterprise budgets.
How ISVs qualify for MACC deals: a readiness checklist
To participate in MACC deals, ISVs need to meet several requirements within the Microsoft commercial marketplace ecosystem. Think of it as your marketplace readiness scorecard.
These elements together make your offer “MACC-ready,” enabling enterprise buyers to use their Microsoft Azure commitment when purchasing your solution:
- Create a transactable listing
- Your offer must be sold and billed through Microsoft, not a “Contact Me” listing.
- Transactable offers let Microsoft process payments on your behalf, which is what enables MACC credit.
- Earn IP Co-sell Incentivized status
- This designation means Microsoft sellers can earn quota credit by selling your solution.
- It also increases your visibility across Microsoft’s field and partner ecosystem.
- Set up usage-based metering for SaaS billing
- If your product uses variable or consumption-based pricing, you’ll need usage metering for SaaS billing in Partner Center.
- This ensures accurate billing and reporting through Microsoft Commerce.
- Publish strong co-sell assets
- Create clear, field-ready materials such as customer one-pagers, pitch decks, architecture diagrams, and success stories.
For more details, see our Microsoft commercial marketplace seller guide for all things Azure.
Best practices for pursuing MACC-eligible deals
Once you’re eligible, how do you win these deals? Here are some proven best practices ISVs use to align with Microsoft Azure Consumption Commitment buyers.
- Collaborate with Microsoft sellers: Partner with field teams to identify accounts with unspent MACC budgets, especially late in Microsoft’s fiscal year (Q4: April through June).
- Use private offers: Most large MACC deals happen through private offers, which allow for custom pricing and terms while still qualifying for MACC burn down.
- Structure multi-year agreements: Multi-year contracts often accelerate burn and strengthen customer retention.
Validate eligibility early: Confirm with your Microsoft Partner Development Manager (PDM) or Partner Sales Executive (PSE) that your listing is MACC-approved before the deal goes to procurement.
Common pitfalls to avoid
Even experienced ISVs can miss opportunities if they overlook the details of Microsoft Azure Consumption Commitment eligibility.
Here are common traps to steer clear of:
- Not transactable: “Contact Me” listings can’t process payments through Microsoft, so they are not eligible for MACC burn down.
- Missing Co-sell Incentivized status: Without it, Microsoft sellers won’t see your solution in their dashboards.
- Incomplete billing setup: Failing to configure usage metering for SaaS billing can delay revenue recognition.
- Lack of communication: If customers or sellers don’t know your product is MACC-eligible, they won’t prioritize it.
You can avoid these pitfalls by validating your setup in Partner Center and confirming all MACC-related tags with your Microsoft representative.
Tackle sets you up for long-term MACC success
Understanding the Microsoft Azure Consumption Commitment is just the first step. For many ISVs, the real challenge lies in turning that knowledge into action. Listing a product, enabling billing, and aligning with Microsoft’s co-sell process can be complex and time-consuming.
That’s where Tackle can help.
Tackle’s platform simplifies the technical, operational, and sales alignment steps that make Cloud GTM in Microsoft work—helping ISVs go to market faster, close deals more easily, and capture the full value of their Microsoft partnership.
With Tackle, ISVs can:
- Build transactable offers quickly, without complex engineering work.
- Enable usage metering for SaaS billing across Azure and other cloud marketplaces.
- Streamline co-sell onboarding and asset management.
- Accelerate go-to-market readiness for Microsoft Azure Consumption Commitment deals.
Tackle helps ISVs reduce friction across the go-to-market process and make the most of their Microsoft investment. Contact us today to learn how we can support your MACC strategy and help you grow through Microsoft Azure.
Frequently Asked Questions
What is a Microsoft Azure Consumption Commitment (MACC)?
It’s a pre-agreed spending commitment that enterprises make with Microsoft, allowing them to apply that spend toward Azure services and eligible third-party solutions.
How can ISVs benefit from enterprise MACC deals?
They gain faster deal cycles, larger contracts, and stronger alignment with Microsoft sellers through the Marketplace.
What is usage-based metering for SaaS billing on Azure?
It’s a billing configuration that lets ISVs measure and charge customers based on consumption directly through Microsoft Commerce.
Can startups participate in Azure MACC deals?
As long as they publish a transactable offer and meet Marketplace requirements, startups can sell MACC-eligible solutions just like larger vendors.
