The Tier That Changes Everything
Microsoft's co-sell program has three tiers, and the difference between them is not just a badge — it's the difference between passive marketplace presence and active enterprise pipeline generation.
Tier 1: Marketplace Listed
Your product is on Azure Marketplace. You have a listing. But you have no formal co-sell relationship with Microsoft's field sales. Microsoft sellers cannot easily find or recommend your product in their internal tools.
Tier 2: Co-Sell Eligible
Formal co-sell status. Microsoft sellers can find your listing in their internal tools and submit co-sell referrals.
Requirements: a transactable listing and a completed referral agreement. This is a step up, but Microsoft sellers aren't strongly motivated to engage at this tier.
Tier 3: IP Co-Sell Eligible
This is where the real value lives. At IP Co-Sell Eligible:
- Microsoft field sales has direct financial incentive to co-sell your product
- Your product is MACC-eligible — purchases count toward the customer's committed Azure spend
- You gain access to Microsoft's Partner Sales Connect for joint pipeline management
- Revenue sharing on co-sell deals becomes available
- You get priority engagement from Microsoft's enterprise sales organization
How to Qualify for IP Co-Sell
- Transactable listing on Azure Marketplace (SaaS or Azure Application)
- Azure Consumed Revenue (ACR) — your product must drive Azure infrastructure consumption
- Technical validation — demonstrate your product's Azure integration depth
- Commercial validation — show marketplace revenue or strong pipeline
The ACR Requirement Explained
The most misunderstood requirement. Your product needs to drive Azure consumption — meaning it runs on Azure infrastructure, not just integrates with Azure APIs from another cloud. Plan your Azure deployment architecture specifically for this.
MACC Eligibility: Why It Matters So Much
Enterprise buyers with MACC agreements will actively prefer MACC-eligible marketplace purchases. Your product, purchased through marketplace, helps them burn down committed spend they're already obligated to use.
This transforms your product from a new budget line item into a strategic deployment of existing budget.
The Progression Timeline
- Marketplace Listed → Co-Sell Eligible: 2–4 weeks (mostly administrative)
- Co-Sell Eligible → IP Co-Sell Eligible: 2–6 months (requires ACR evidence and technical validation)
What Changes at IP Co-Sell
The practical difference: Microsoft's 30,000+ enterprise sellers now have a financial reason to bring your product into their accounts. The volume of inbound co-sell referrals increases significantly.
Deal close rates improve because Microsoft's seller involvement adds credibility and procurement navigation.
Automatum simplifies cloud marketplace operations across AWS, Azure, and GCP.
Book a Working Session →Frequently Asked Questions
Common questions about the topics covered in this guide.
What is the difference between Co-Sell Eligible and IP Co-Sell?
Co-Sell Eligible provides basic co-sell access and partner referrals. IP Co-Sell adds MACC eligibility, meaning purchases count toward Azure committed spend, plus direct financial incentives for Microsoft sellers to recommend your product.
How do I become IP Co-Sell eligible on Azure?
You need a transactable marketplace listing, a published reference architecture, at least $100K in Azure consumed revenue over the trailing 12 months, and a completed IP Co-Sell application with Microsoft.
Does Co-Sell Eligible qualify for MACC?
No. Only IP Co-Sell status qualifies for MACC eligibility. Co-Sell Eligible provides co-sell referrals but does not allow purchases to count toward Azure committed spend commitments.
How long does it take to achieve IP Co-Sell?
Most ISVs take 6 to 12 months from initial listing to IP Co-Sell status. The timeline depends on achieving the revenue threshold and completing the technical and commercial requirements.
Keep building your marketplace motion
Azure co-sell and marketplace guides for ISVs.
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