Co-sell with Microsoft: A Simple Overview

This article explains how co-sell with Microsoft 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 Co-sell with Microsoft?

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

📊  Microsoft Co-Sell Statuses (This Is the Key Part)

Microsoft 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:

• Co-sell ready does not by itself provide Azure IP co-sell eligibility
• Additional requirements must be met to achieve Azure IP co-sell eligible status

👉 Co-sell ready = seller visibility, not full Azure IP co-sell eligibility.

3. Azure IP co-sell eligible 🚀

This is the Azure-specific co-sell eligibility status and an important milestone for partners that want to actively engage Microsoft sellers on opportunities they originate.

What it means:

• You have achieved co-sell ready status, and
• Your offer meets the additional requirements for Azure IP co-sell eligibility

What you can do:

• Submit Azure IP co-sell opportunities
• Proactively share opportunities with Microsoft sellers
• Collaborate on deals tracked in Microsoft systems
• Enable eligible sales through Microsoft Marketplace to contribute toward customers' Microsoft Azure Consumption Commitments (MACC)

📋  Benefits by Status (Quick Comparison)

Table 1

Microsoft confirms that co-sell ready exposes solutions to Microsoft sales teams, while Azure IP co-sell eligible enables Azure IP co-sell referrals and MACC-related benefits.

📦  Which Offer Types Can Reach Azure IP Co-Sell Eligibility?

Microsoft currently lists the following offer types as eligible for Azure IP co-sell eligible status:

• Azure Application
• Azure Container
• Azure Virtual Machine
• Software as a Service (SaaS)

The offer's solution type must be "IP" to qualify for Azure IP co-sell eligible status.

✅  Requirements to Become Co-Sell Ready (Summary)

To reach co-sell ready status, you must:

• Have a PartnerID and active Microsoft Marketplace account in Partner Center
• Complete your business profile
• Publish a live offer on Microsoft Marketplace
• Provide a sales contact for each co-sell-eligible geography
• Provide the required listing and co-sell document information on the Co-sell > Solutions page

Additional requirements may apply depending on the solution type. For example:

• Professional services solutions require at least one Solutions Partner designation
• Business Applications ISVs have additional ISV Success requirements

Microsoft's current co-sell requirements should be used as the source of truth for eligibility requirements.

🚀  Additional Requirements for Azure IP Co-sell Eligibility

After achieving co-sell ready status, you must also meet four additional requirements for Azure IP co-sell eligible status:

1. Reach the required revenue threshold
   • At the organization level, generate at least $100,000 USD in Azure Consumed Revenue or Marketplace Billed Sales through Microsoft Marketplace over the trailing 12-month period
      
2. Pass Microsoft technical validation
   • The solution must meet Microsoft Marketplace policies
   • The solution must be primarily platformed on Azure
   • The solution must pass Microsoft's Azure platformed technical validation process
      
3. Provide a reference architecture diagram
   • Upload the required reference architecture diagram with your co-sell documents
   • Note: Microsoft states that this requirement is not mandatory for Azure Application, Azure Container, or Azure Virtual Machine offer types
      
4. Be transactable on Microsoft Marketplace
   • New offers must be transactable on Microsoft Marketplace to qualify for Azure IP co-sell eligible status

🔄  Co-sell Solution vs. Microsoft Marketplace Offer

These are related but different concepts:

• Microsoft Marketplace offer
  • The sellable offer published on Microsoft Marketplace
  • Configured by offer type (SaaS, VM, container, etc.)
• Co-sell solution
  • The solution configured for co-selling in Partner Center
  • Can be linked to a Microsoft Marketplace offer
  • Includes additional co-sell information and collateral
  • Is reviewed and assigned a co-sell status

Microsoft explicitly distinguishes between a co-sell solution and a Microsoft Marketplace offer.

Only solutions that meet the applicable co-sell requirements can achieve co-sell ready or Azure IP co-sell eligible status.

Key Takeaways

• Publishing an offer on Microsoft Marketplace does not automatically make it co-sell ready.
• In market means the solution is linked to a live Microsoft Marketplace offer but has not met the co-sell-ready requirements.
• Co-sell ready provides visibility to Microsoft sales teams.
• Azure IP co-sell eligible is the Azure-specific status that enables the broader Azure IP co-sell motion.
• Azure IP co-sell eligible offers can contribute toward customers' Microsoft Azure Consumption Commitments (MACC).
• Azure IP co-sell eligibility requires a co-sell-ready solution and four additional requirements.

If you’re unsure where your solution stands or what’s required next, Labra can help guide you through each step.