If you’re an Independent Software Vendor (ISV) looking to grow faster, reach more customers, and simplify your sales process, the Microsoft commercial marketplace is a powerful path forward. But let’s be real—navigating it can feel overwhelming at first.
That’s why we put this guide together. Think of it as your shortcut to understanding how the Microsoft commercial marketplace works, what benefits you’ll get, and how participating in the established programs can help you go further, faster.
Let’s start with the basics.
What is Microsoft’s marketplace?
In short, the Microsoft commercial marketplace is where businesses go to find, buy, and deploy software—often with just a few clicks. It’s a global catalog that helps customers discover solutions built by ISVs, listed right alongside Microsoft’s own offerings.
Your software becomes part of the Microsoft ecosystem, which means buyers can roll your product into their existing Microsoft purchase agreements. One invoice from Microsoft. One easy procurement process. Zero procurement headaches.
Whether you’re targeting SMBs or large enterprises, the Microsoft commercial marketplace can help you:
- Access new markets, customer segments, and Microsoft Cloud users
- Build trust with your customers by leveraging the Microsoft brand
- Shorten your sales cycle and reduce cost and time to market
- Unlocks sales rewards—up to $200,000 worth of rewards
- Use multiparty private offers (MPOs) to move faster with partner-led motions
It’s no wonder more ISVs are making the marketplace central to their go-to-market strategy.
Appsource vs Azure Marketplace: What’s the difference?
The Microsoft commercial marketplace includes two storefronts: Microsoft AppSource and Azure Marketplace. While they operate similarly behind the scenes, each of these is designed for a specific user.
What is Microsoft AppSource and what are its benefits?
Microsoft AppSource is geared toward business users. Use it to list SaaS applications and solutions that integrate with Microsoft 365, Dynamics 365, and Power Platform.
AppSource is where decision-makers go when they’re shopping for tools to solve business problems.
What is the Azure Marketplace and what are its benefits?
Azure Marketplace is targeted for IT professionals and developers looking for solutions built on or for Microsoft Azure.
Read more: How to Drive Revenue with Azure Marketplace
Through the Azure Marketplace, cloud developers and IT pros can locate, try, and deploy software needed to help manage cloud infrastructure.
Why partnering with Microsoft is a smart move for ISVs
What are the key Microsoft partner programs?
One of the best ways to set yourself up for success on Microsoft commercial marketplace is by joining Microsoft’s partner programs. These programs aren’t just check-the-box memberships—they’re designed to help you build, market, and sell your solutions faster and more effectively.
Let’s walk through a few key programs.
The Microsoft Cloud AI Partner Program
The Microsoft Cloud AI Partner Program is the central hub for ISVs looking to sell on the Microsoft commercial marketplace—think of it as your starting point. When you join, you unlock access to the Microsoft Partner Center where you’ll manage your listings, offers, and marketplace activity.
Beyond the basics, being part of the Cloud AI Program can help you:
- Build credibility with customers through Microsoft-verified competencies
- Drive revenue with Azure-based managed services
- Discover different partner offers and resources
- Access exclusive tools and training
In short, membership in the partner program is an essential step toward establishing your ISV as a credible and trusted seller in the Microsoft commercial marketplace.
You can take it a step further and purchase the Microsoft Action Pack, which includes things like branded assets that highlight your product/services, and more to help your marketplace strategy succeed. The Action Pack is a good way to “power up” your Microsoft Cloud Partner membership.
Additional Microsoft resources and programs
Microsoft offers a ton of resources to help fuel your growth in the Microsoft commercial marketplace while strengthening your partnership with them along the way.
When you’re bringing a new solution to market, having the right mix of marketing tools and support can make all the difference. That’s where Microsoft’s go-to-market resources come in. As a Microsoft partner, you get access to a healthy assortment of co-branded and solution-specific collateral, training guides, customizable content, and much more. You’ll also find best-practices and research to help you market your product, along with tools such as a geo-expansion readiness assessment, to help you determine whether you’re ready to go global with your products and services.
One of the biggest perks? Marketplace Rewards. This is Microsoft’s primary go-to-market benefit program for marketplace sellers, and it’s built to help you grow. As you hit new milestones in the Microsoft commercial marketplace, you unlock new benefits—like marketing support, demand gen, and even sales alignment opportunities with Microsoft teams. Think of it as a growth flywheel: the more success you have, the more support you get. However, there are some specific eligibility requirements for this program that should be noted.
Here are a few more programs worth knowing about:
- FastTrack for Azure: This program helps remove technical barriers for companies looking to develop products for Azure. It’s highly recommended that ISVs apply for the FastTrack program, as it’s a great way to ramp up your partnership with Microsoft. You’ll get hands-on support from Microsoft engineers to help ensure your solution is set up for success. (Heads up: there are some eligibility requirements for this as well.)
- Microsoft for Startups Founders Hub: This program offers free access to developer tools, mentorship, and up to $150,000 in Azure credits to tech startups committed to developing on the Microsoft Azure platform. This program, like the others listed here, can offer a critical leg-up for early-stage software companies looking to leverage the Marketplace.
- Microsoft ISV Success Program: This is an all-in-one launchpad for ISVs looking to get started (or go further) with Microsoft. Think of it as a combination of Microsoft’s various programs, all rolled into one. You’ll get access to 1:1 consultations, app architecture reviews, technical support, and helpful resources like code samples and client libraries—all designed to help you accelerate your Cloud GTM strategy.
Let’s talk co-sell and why it matters
Co-selling with Microsoft is a crucial step for ISVs scaling and optimizing their Cloud GTM strategy.
First, it’s important to know what co-selling is—in a nutshell, co-selling is a collaborative partnership between an ISV and a cloud provider in which the cloud provider shares sales leads and engages in marketing efforts with the ISV.
Co-sell programs provide an unparalleled opportunity to gain traction in the marketplace while boosting revenue at the same time.
Read more: Co-Selling 101 for Startups
Here’s what you get with the Microsoft Co-Sell Program:
- More visibility to Microsoft’s global customer base
- Access to Microsoft’s network of resellers and field sellers
- Support for private offers, enabling custom pricing and terms
- Go-to-market services to accelerate growth
Read more: The Alliance Leader’s Cloud Co-sell Playbook
So, how does co-selling work?
It starts when you register a co-sell eligible deal in the system. From there, you’re connected with Microsoft AEs and AMs (Account Executives/Managers). These sellers are incentivized to help you succeed by closing deals and facilitating co-sell wins and have specific goals around closing private offers and revenue transacted on marketplace by their accounts—when you win, they win.
The goal of co-selling is to increase your visibility for customers and to deepen your engagement with and commitment to Microsoft. Once a certain partner status is achieved, partners can receive additional support and resources like a Partner Development Manager (PDM) and can apply annually for Market Development Funds (MDF) that can be used for events, advertisements, or other lead-generation activities.
The PDM is a seller’s right-hand person and acts as your dedicated guide for all things marketplace and Microsoft strategy. Depending on your level of investment with Microsoft, these individuals are assigned directly to your organization and are dedicated to helping you succeed. Your PDM is your go-to person when you have questions or any issues involving Microsoft.
Bottom line: co-selling is your foot in the door to Microsoft’s sales engine—and it’s one of the most powerful levers you can pull in the Microsoft commercial marketplace. Want help getting started? Start co-selling today with Tackle.
Developing a Microsoft ISV Success Program
The Microsoft commercial marketplace can be a highly effective channel for scaling your Marketplace strategy and driving revenue, and Microsoft continues to invest heavily in the marketplace to continue to make it an even more effective way to scale your business.
Read more: The Complete Playbook to Cloud Marketplaces
However, it does take some careful planning to get an ISV up and running on the Microsoft commercial marketplace.
Schedule a demo with Tackle to learn how we can help you get listed with Microsoft commercial marketplace and make the most of marketplace selling.
Frequently asked questions (FAQs)
Who sells on Microsoft commercial marketplace?
The Microsoft commercial marketplace is home to a wide range of sellers—from early-stage startups to established Independent Software Vendors (ISVs). If you build B2B solutions that run on or integrate with Microsoft products, you can list your software here.
What type of products are sold on Microsoft commercial marketplace?
The Microsoft commercial marketplace has two main online stores: Microsoft AppSource is for business solutions and Azure Marketplace is for solutions that are built on or built for Azure and intended for IT professionals and developers. All kinds of solutions can be sold here—SaaS products, virtual machines, consulting, and managed services.
How does Microsoft commercial marketplace handle payments to ISVs?
When your offer is “transactable,” it means Microsoft handles the billing on your behalf. You choose the pricing model and Microsoft takes care of the transaction. You get paid through your Partner Center account. This setup makes it easier to sell globally while reducing back-end operational burden.
Who shops on Microsoft commercial marketplace?
Microsoft commercial marketplace attracts a wide range of B2B software buyers—from small companies to large enterprises—looking to solve business problems. The variety of products and services available through Microsoft commercial marketplace makes it easy to find solutions.
Is there a listing fee for Microsoft commercial marketplace?
Microsoft charges a standard 3% transaction fee on purchases made through the marketplace. Compared to traditional selling channels, that’s pretty minimal—especially when you factor in reach, speed, and streamlined procurement processes provided.
