July 15, 2024
Important Updates on Azure IP Co-Sell Program!

After the dust has settled from the Microsoft Inspire 2023 conference, ISVs are starting to grasp the reality of our Azure IP Co-Sell status for our solutions. The goalposts have significantly shifted, and the details truly matter. Let’s delve into them:
👉 Azure IP Co-Sell status requirements for ‘In Market’ and ‘Co-Sell Ready’ remain unchanged and offer no benefits.
👉 The previously coveted ‘Co-Sell Incentivised’ status has now been renamed to ‘Co-Sell Eligible’ and serves as the starting point. However, achieving this status no longer comes with benefits, except for becoming eligible to qualify for the ‘Co-Sell Top Tier’ benefits and a crisp high five from Microsoft. To qualify for ‘Co-Sell Eligible,’ ISVs must:
1️⃣ Generate at least $100,000 of ACR (Azure Consumer Revenue) in the past 12 months.
2️⃣ Ensure that more than 50% of your offer’s infrastructure uses Azure’s repeatable IP code.
3️⃣ Provide a reference architecture diagram.
4️⃣ NEW! Your offers must be transactable on Azure Marketplace (as of July 11, 2023).
👉 The big news, however, is the introduction of ‘Co-Sell Top Tier’ benefits, which is the new pinnacle for ISVs. The ‘Co-Sell Top Tier’ benefits encompass the ability for your solutions to be Microsoft Seller Incentivized, and for you as an ISV to be eligible to participate in PRACR (Partner Reported Azure Consumed Revenue). Achieving ‘Co-Sell Top Tier’ benefits requires meeting one of two strategic pathways with high bars:
💡 Marketplace performance:
💲 $4M in marketplace sales, OR
💲 12 net-new customers through the marketplace, each with at least $10k, OR
💲 30 marketplace transactions across 8 unique customers.
OR
💡 Substantial partner cloud consumption commitments:
💲 $30M Azure commitment and 5 marketplace transactions OR
💲 $200M Azure commitment and a transactable solution.
For further details, refer to: https://bit.ly/3OnrLSI
📃 Fine print shared during the MS Inspire 2023 sessions:
👏 We have a grace period of 6 months from July 1, 2023, to meet these new requirements. In other words, our existing IP Co-Sell Status will still apply during H1 FY24.
👏 Performance across all of your marketplace transactable solutions contributes to meeting the requirements for Co-Sell Top Tier benefits.
If you need assistance deciphering these requirements or becoming transactable on the marketplace, we offer our marketplace enablement solution, Stactize.
