Partner Blog | Maximizing partner success with marketplace changes

Written by Mason McCoy, Director of Partner Experiences

Cloud marketplaces are growing due to customer demand. Industry analyst Canalys previously estimated that enterprise software sales through hyperscaler marketplaces could reach $45 billion by 2025. We recently revised our estimates as follows: $85 billion by 2028.¹

The growth of Microsoft’s commercial market is consistent with industry momentum, according to the following internal Microsoft data:

• Billions of Dollars in Marketplace Sales
• 100% revenue growth
• 230% increase in direct digital sales

As more customers turn to the Marketplace to centralize their cloud investments, Microsoft is committed to ensuring the Marketplace is a partner-centric business platform. As part of this effort, Microsoft is evolving its Marketplace agency fee structure for renewals through private offers.

Starting October 1, 2024, Microsoft will offer a 50% discounted agency fee for renewals sold as private offers through the Marketplace. When you bill an existing marketplace contract or non-marketplace sale as a renewal in Partner Center, the fee reduction is automatically applied. These changes will help you maximize profitability while solidifying valuable relationships with your customers.

Marketplace: Connect with Microsoft customers

As cloud budgets grow, customers want to get more value from their investments. Microsoft allows customers to count 100% of their eligible purchases toward their Microsoft Azure cloud consumption commitments. This helps customers get more value for their investments, close bigger deals, and grow their Azure business.

Join our conversation Marketplace Community and our Marketplace Blog!