Cloud marketplaces have become the fastest growing channel for B2B software sales, driven by continuous growth in IT spending that is projected to reach $5 trillion in 20241. More customers are centralizing their cloud portfolios and making marketplaces their preferred buying platform. For software companies, adopting cloud marketplaces as a core go-to-market strategy helps close deals faster and increases deal sizes. At Microsoft, the marketplace is the center of gravity for how we go to market with our software partners to solve customers’ technology challenges.
The Microsoft commercial marketplace promise
The marketplace democratizes IT, helping empower any Microsoft partner to sell to any Microsoft customer worldwide. As a B2B global commerce engine, the marketplace adapts to how customers want to buy and how you want to sell, whether that is digital direct (always-on selling to help grow your pipeline), through partner (selling alongside the Microsoft global ecosystem of over 500,000 partners), or with Microsoft (unlocking enterprise deals alongside Microsoft sellers).
This blog is the introduction, and first in a four-part series on maximizing your marketplace opportunity across these different selling paths. Our next edition will dive into always-on selling with digital direct.
Marketplace driven by customer demand
Ultimately, our investments in the marketplace are based on customer needs. Cloud marketplaces continue to grow beyond enterprise adoption to serve businesses of all sizes. Historically, enterprises used marketplaces to standardize software vendors and optimize pre-committed cloud budgets through Azure IP co-sell eligible purchases. Now, customer adoption is growing across every segment.
With the AI platform shift accelerating, organizations are eager to innovate. IDC’s Worldwide Responsible AI Survey found that 91% of organizations use AI technology, and generative AI adoption surged to 75% in 2024 (from 55% in 2023).2 Our marketplace reflects these AI trends—AI solutions are the most purchased solutions by first-time marketplace customers, with AI sales increasing 4X year-over-year.3
Leveraging Azure IP co-sell and MACC
Pre-committed cloud budgets further fuel marketplace growth. The cloud is foundational for every organization, making Microsoft Azure Consumption Commitment (MACC) a strategic advantage. With a 100% match for Azure IP co-sell eligible purchases, customers can optimize cloud spending and maximize their investments.
With Azure IP co-sell aligned to the marketplace:
- Marketplace sales to MACC customers have grown 110% annually.
- Over 80% of MACC customers actively buy in the marketplace.
- The number of Azure IP co-sell solutions continues to grow, driving new co-sell opportunities.
Helping you succeed
Microsoft is and always will be a partner-focused organization. No matter your company size, the Microsoft AI Cloud Partner Program provides the right resources to meet you where you are on your journey.
- ISV Success is purpose-built to drive your success with the marketplace and is free to join.
- Once your solution is listed, use Marketplace Rewards to get marketing support to fuel your sales. Partners who use Marketplace Rewards report 7X more marketplace sales than those not using their benefits.
- Azure IP co-sell enables you to sell to Microsoft customers with pre-committed budgets and partner with our field sellers.
Please tune into this series in which we will go in depth on tips and strategies to maximize your marketplace success. The next part will focus on growing your pipeline with digital direct, followed by through partner, and then co-selling with Microsoft.
You can continue to stay connected to us through the Marketplace Community and follow our Marketplace Blog for important announcements.