This article explains how Azure Co-Sell works, what each co-sell status means, and when you can actively collaborate with Microsoft sellers. It’s written to clarify common confusion around visibility vs. opportunity sharing.
What is Azure Co-Sell?
Co-selling is any collaborative sales motion between you and Microsoft (or other Microsoft partners) to help close customer deals.
This collaboration can include:
- Building joint demand
- Sales planning with Microsoft sellers
- Sharing and working on sales leads
- Partner-to-partner selling
- Selling through Microsoft Marketplace
Co-selling happens around solutions (offers) that support Microsoft technologies. These can include:
- IP-based software (SaaS, VM, containers, applications)
- Services that support Microsoft platforms
What is a Co-Sell Opportunity?
A co-sell opportunity is a deal where:
- A customer need is identified
- Microsoft sellers, partners, or both collaborate
- The opportunity is tracked in Microsoft’s internal sales systems
Co-sell opportunities can take several forms:
- Co-sell with Microsoft sales teams – joint selling with Microsoft sellers
- Partner-to-Partner (P2P) – collaborating with another Microsoft partner
- Private deal – sharing an opportunity you’re already working on so Microsoft can track it
- Solution Assessment (SA) – working with vetted partners to assess customer needs
Azure Co-Sell Statuses (This Is the Key Part)
Azure uses progressive co-sell statuses. Each status unlocks different capabilities.
1. In-market 🛒
What it means:
- Your offer is live in Microsoft Marketplace
- No co-sell requirements have been met yet
What you can do:
- Your offer can be sold via Marketplace
Limitations:
- Microsoft sellers don’t see your solution as co-sell ready
- You can’t submit or share co-sell opportunities
2. Co-sell Ready 👀
What it means:
- Your solution meets Microsoft’s co-sell-ready requirements
- Microsoft sellers can discover your solution internally
What you can do:
- Be visible to Microsoft sales teams
- Be pulled into deals initiated by Microsoft sellers
Important limitation:
- You cannot submit co-sell referrals
- You cannot proactively share opportunities with Microsoft
👉 Co-sell ready = seller visibility, not opportunity sharing.
3. Azure IP Co-Sell Eligible 🚀
This is the highest Azure co-sell status and the most important milestone.
What it means:
- You are co-sell ready and
- Your offer is IP-based and meets additional Microsoft requirements
What you can do:
- Submit co-sell referrals
- Proactively share opportunities with Microsoft sellers
- Collaborate fully on deals tracked in Microsoft systems
- Align deals with customer Azure Consumption Commitments (MACC)
This status is required if you want to actively engage Microsoft sellers on opportunities you originate.
Benefits by Status (Quick Comparison)
| Capability | In-market | Co-sell Ready | Azure IP Co-sell Eligible |
|---|---|---|---|
| Marketplace listing | ✅ | ✅ | ✅ |
| Visible to Microsoft sellers | ❌ | ✅ | ✅ |
| Submit co-sell referrals | ❌ | ❌ | ✅ |
| Share opportunities with Microsoft | ❌ | ❌ | ✅ |
| MACC alignment | ❌ | ❌ | ✅ |
Which Offer Types Can Reach Azure IP Co-Sell Eligibility?
Only IP-based offers are eligible:
- Azure Application
- Azure Container
- Azure Virtual Machine
- Software-as-a-Service (SaaS)
The offer’s solution type must be IP, and it must be actively platformed on Azure.
Requirements to Become Co-Sell Ready (Summary)
To reach co-sell ready, you must:
- Have a Partner ID and active Partner Center account
- Complete your business profile
- Publish a live offer in Microsoft Marketplace
- Provide sales contacts per geography
- Upload required co-sell documents (one-pager, pitch deck)
Additional notes:
- Professional services offers require a solution partner designation
- Business Applications offers require ISV Success enrollment
Additional Requirements for Azure IP Co-Sell Eligibility
After becoming co-sell ready, you must also:
-
Meet the revenue threshold
- $100,000 USD in Azure Consumed Revenue or Marketplace billed sales (last 12 months)
-
Pass Microsoft technical validation
- Solution must be primarily platformed on Azure
- Must meet Marketplace and Azure technical standards
-
Provide a reference architecture diagram
- Required for most offer types
-
Be transactable on Microsoft Marketplace
- Customers must be able to purchase the offer directly
🚀 Learn more! Click here for more on IP Co-Sell Eligibility.
Co-Sell Solution vs Marketplace Offer
-
Marketplace Offer
- The sellable listing customers purchase
- Configured by offer type (SaaS, VM, etc.)
-
Co-Sell Solution
- A Marketplace offer that is enabled for co-selling
- Includes additional co-sell collateral
- Reviewed by Microsoft and assigned a co-sell status
Only co-sell solutions appear in Microsoft’s internal seller catalogs.
Key Takeaways
- Publishing an offer does not automatically enable co-selling
- Co-sell ready provides visibility, not opportunity sharing
- Azure IP co-sell eligibility is required to submit and share co-sell opportunities
- IP-based, transactable offers unlock the full Microsoft co-sell motion
If you’re unsure where your offer stands or what’s required next, Labra can help guide you through each step.
🚀 Learn More! Click here for the official Azure Marketplace Co-sell documentation.