Microsoft Marketplace - Simply Explained
Welcome to another episode of Knowledge Nuggets with Mirko Peters. Today we're exploring Microsoft Marketplace, one of the most important platforms in the Microsoft ecosystem—and one that's often misunderstood. When most people hear the word Marketplace, they imagine something similar to an app store where you browse a few applications, click Buy, and you're done. While that's certainly part of the story, Microsoft Marketplace has evolved into something much bigger. Today it's a global commerce platform that connects customers, software vendors, consultants, AI solutions, and cloud services through a single purchasing experience. Whether you're an IT administrator looking for infrastructure, a business leader searching for a Power Platform solution, or a software vendor trying to reach millions of Microsoft customers, Marketplace plays a central role. By the end of this episode, you'll understand what Microsoft Marketplace actually is, why it exists, how it simplifies software procurement, and why it's becoming one of Microsoft's most important growth platforms.
WHY MICROSOFT CREATED MARKETPLACE
Before cloud marketplaces existed, buying enterprise software was surprisingly complicated. Every vendor had its own website, its own pricing model, its own contract, and its own billing process. If an organization wanted a security platform from one company, a reporting solution from another, and an AI tool from a third, procurement quickly became a project of its own. IT departments spent weeks evaluating vendors, finance teams had to process multiple invoices every month, and legal departments reviewed countless contracts that often covered very similar services. Even after the software had been purchased, deployment could still involve manual licensing, configuration, and user provisioning. Microsoft recognized that the buying experience itself had become a problem. Organizations didn't necessarily need fewer software vendors—they needed a simpler way to discover, evaluate, purchase, and manage them. That's exactly what Microsoft Marketplace delivers. Instead of maintaining dozens of independent vendor relationships, organizations can purchase solutions through the same Microsoft relationship they already use for Azure and Microsoft 365. The result is a procurement process that's dramatically simpler, faster, and easier to manage.
WHAT IS MICROSOFT MARKETPLACE?
At its core, Microsoft Marketplace is Microsoft's unified commercial platform for cloud solutions. Rather than being limited to applications, Marketplace offers an enormous range of commercial products including SaaS solutions, Azure infrastructure, virtual machines, managed applications, AI agents, consulting services, business applications, and Power Platform extensions. Every solution published on the platform has gone through Microsoft's validation process before becoming available to customers. A useful way to think about Marketplace is as a digital shopping mall. Instead of every software company building its own storefront, Microsoft provides the building. Customers enter through a single front door, compare products, read documentation, start free trials, purchase subscriptions, and deploy solutions without ever leaving the Microsoft ecosystem. Because everything integrates with Microsoft accounts, Azure subscriptions, and Microsoft 365 tenants, customers spend less time managing vendors and more time deploying technology that actually solves business problems.
TWO STOREFRONTS, ONE PLATFORM
One area that often causes confusion is the relationship between Azure Marketplace and AppSource. Although Microsoft now presents one unified Marketplace experience, the platform still serves two different audiences. Azure Marketplace is primarily designed for technical buyers. Cloud architects, developers, infrastructure engineers, and Azure administrators typically visit Azure Marketplace when searching for virtual machines, managed applications, containers, security appliances, databases, or cloud-native SaaS services that integrate directly with Azure. AppSource, on the other hand, focuses on business users. Marketing departments, HR teams, finance professionals, sales organizations, and operations managers generally discover business applications, Microsoft Teams extensions, Dynamics 365 solutions, and Power Platform applications through AppSource. The important point is that customers don't need to understand this distinction. A software vendor can publish a single solution, and Microsoft automatically presents it through the most appropriate storefront depending on who is searching and what they're looking for. This unified experience removes unnecessary complexity while ensuring both technical and business audiences discover relevant solutions.
BUYING SOFTWARE HAS NEVER BEEN EASIER
One of Marketplace's biggest strengths is how dramatically it simplifies procurement. Instead of contacting vendors individually, customers search Marketplace, compare available products, review documentation, examine customer ratings, and often start a free trial within minutes. If the solution meets their requirements, purchasing becomes equally straightforward. Marketplace supports several commercial models, including subscription licensing, pay-as-you-go services, bring-your-own-license scenarios, and private offers for enterprise agreements. Perhaps even more valuable is the integration with Microsoft's existing billing infrastructure. Organizations don't receive another vendor invoice or need another purchasing workflow. Instead, Marketplace purchases are added to their existing Microsoft agreement, allowing Azure services, Microsoft 365 subscriptions, and Marketplace solutions to appear together on consolidated billing. For procurement and finance teams, this eliminates significant administrative overhead while giving IT departments much faster access to new technology.
WHY SOFTWARE VENDORS LOVE MARKETPLACE
Marketplace doesn't only benefit customers—it has become one of the most important sales channels for Microsoft partners. Publishing a solution on Marketplace immediately exposes it to millions of organizations already working inside Microsoft's cloud ecosystem. Instead of convincing customers to visit another website, partners appear directly where purchasing decisions are already being made. Their applications can be discovered through Azure, Microsoft Teams, Microsoft 365, Copilot, and Microsoft's administration portals. This dramatically increases visibility while reducing customer acquisition costs. Marketplace also enables participation in Microsoft's co-sell programs, where Microsoft sales teams actively recommend partner solutions during customer engagements. For many software companies, Marketplace has evolved from an optional distribution channel into a fundamental part of their overall go-to-market strategy. As Microsoft continues investing in partner incentives and Marketplace Rewards, the platform is becoming increasingly important for software vendors building on Azure and Microsoft 365.
AI IS CHANGING THE MARKETPLACE EXPERIENCE
Like many Microsoft products, Marketplace is rapidly being transformed by artificial intelligence. Instead of requiring customers to search using exact product names, Marketplace increasingly supports natural language queries. Rather than typing "project management software," a customer might simply ask for "an AI agent that helps coordinate projects inside Microsoft Teams." Marketplace understands the request, recommends relevant solutions, highlights important differences, and even generates side-by-side comparisons that explain which product best matches the customer's requirements. Product pages are also becoming more interactive through AI-powered assistants capable of answering licensing, deployment, integration, and compatibility questions. At the same time, Marketplace has introduced dedicated sections for Microsoft 365 Copilot agents and AI-powered business applications, making it much easier for organizations to discover intelligent solutions that integrate directly into their existing Microsoft environment. Instead of simply becoming a larger software catalog, Marketplace is evolving into an intelligent advisor that actively helps customers make better purchasing decisions.
EVERYTHING CONNECTS THROUGH THE MICROSOFT ECOSYSTEM
Perhaps the greatest strength of Microsoft Marketplace isn't the number of available products—it's how seamlessly everything integrates. When a customer purchases a solution through Marketplace, they're not simply buying software. They're extending their existing Microsoft environment. Authentication works through Microsoft Entra ID. Existing Conditional Access policies continue protecting users. Billing flows through established Microsoft agreements. Azure subscriptions provision resources automatically, while Microsoft Teams, Copilot, Dynamics 365, and Microsoft 365 can immediately surface newly purchased applications. This level of integration dramatically reduces deployment complexity while maintaining the governance, identity management, and security controls organizations have already invested in. Rather than introducing another isolated platform, Marketplace strengthens the Microsoft ecosystem by allowing customers to extend it safely with trusted third-party solutions.
Become a supporter of this podcast: https://www.spreaker.com/podcast/m365-fm-modern-work-security-and-productivity-with-microsoft-365--6704921/support.
🚀 Want to be part of m365.fm?
Then stop just listening… and start showing up.
👉 Connect with me on LinkedIn and let’s make something happen:
- 🎙️ Be a podcast guest and share your story
- 🎧 Host your own episode (yes, seriously)
- 💡 Pitch topics the community actually wants to hear
- 🌍 Build your personal brand in the Microsoft 365 space
This isn’t just a podcast — it’s a platform for people who take action.
🔥 Most people wait. The best ones don’t.
👉 Connect with me on LinkedIn and send me a message:
"I want in"
Let’s build something awesome 👊
00:00:00,000 --> 00:00:01,920
Today's topic is Microsoft Marketplace.
2
00:00:01,920 --> 00:00:03,560
Is it just a store for buying apps?
3
00:00:03,560 --> 00:00:05,400
Like the iTunes store for businesses?
4
00:00:05,400 --> 00:00:07,000
Actually, it's much more than that.
5
00:00:07,000 --> 00:00:08,720
By the end of this episode, you'll understand
6
00:00:08,720 --> 00:00:12,080
how it powers how companies discover, try, and buy
7
00:00:12,080 --> 00:00:15,960
everything from a simple SaaS tool to a full AI agent
8
00:00:15,960 --> 00:00:17,640
and why that matters for you.
9
00:00:17,640 --> 00:00:19,360
We'll look at the two storefronts,
10
00:00:19,360 --> 00:00:21,360
how procurement works behind the scenes
11
00:00:21,360 --> 00:00:22,920
and what that means for partners.
12
00:00:22,920 --> 00:00:25,040
So grab your coffee and let's dive in.
13
00:00:25,040 --> 00:00:26,760
The problem marketplace solves.
14
00:00:26,760 --> 00:00:28,840
Let's go back to how I'd procurement worked
15
00:00:28,840 --> 00:00:29,800
before the marketplace.
16
00:00:29,800 --> 00:00:32,400
Say you run a small company and you need three things,
17
00:00:32,400 --> 00:00:36,000
a security tool, a data dashboard, and a time tracking app,
18
00:00:36,000 --> 00:00:37,320
all from different vendors.
19
00:00:37,320 --> 00:00:39,560
20 years ago, that meant opening separate tabs
20
00:00:39,560 --> 00:00:42,600
for each vendor's website, signing up for each one individually,
21
00:00:42,600 --> 00:00:44,080
negotiating pricing over the phone
22
00:00:44,080 --> 00:00:45,720
and getting a purchase order approved.
23
00:00:45,720 --> 00:00:47,360
You hoped they'd all work together.
24
00:00:47,360 --> 00:00:49,920
Then at the end of the month, three different invoices arrived,
25
00:00:49,920 --> 00:00:52,440
each with its own billing cycle, tax treatment, and support
26
00:00:52,440 --> 00:00:55,920
line, scale that up to a company with 50 vendors or 500
27
00:00:55,920 --> 00:00:57,480
and the friction becomes enormous.
28
00:00:57,480 --> 00:00:59,320
Procurement teams spend weeks just getting
29
00:00:59,320 --> 00:01:01,160
a single tool approved and paid for.
30
00:01:01,160 --> 00:01:03,040
And that's before anyone even uses it.
31
00:01:03,040 --> 00:01:04,880
Microsoft looked at this mess and thought,
32
00:01:04,880 --> 00:01:06,760
what if all these services work together?
33
00:01:06,760 --> 00:01:09,160
What if you could discover, try, buy, and manage everything
34
00:01:09,160 --> 00:01:10,360
from one single place?
35
00:01:10,360 --> 00:01:12,120
That's exactly what the marketplace solves.
36
00:01:12,120 --> 00:01:13,520
It brings everything under one roof,
37
00:01:13,520 --> 00:01:16,080
so you don't have to chase down different vendors and contracts.
38
00:01:16,080 --> 00:01:18,560
Instead of hunting down each vendor separately,
39
00:01:18,560 --> 00:01:21,160
you go to one website, search for what you need,
40
00:01:21,160 --> 00:01:25,000
read reviews, compare pricing, and start a free trial,
41
00:01:25,000 --> 00:01:26,880
all without leaving the page.
42
00:01:26,880 --> 00:01:28,560
When you're ready to buy, just click a button.
43
00:01:28,560 --> 00:01:30,320
The licenses are set up automatically,
44
00:01:30,320 --> 00:01:32,760
billing flows through your existing Microsoft agreement,
45
00:01:32,760 --> 00:01:35,280
and you get one invoice and one support channel.
46
00:01:35,280 --> 00:01:37,320
This matters whether you're a five person start-up
47
00:01:37,320 --> 00:01:38,760
or a Fortune 500 company.
48
00:01:38,760 --> 00:01:40,800
For small businesses, it removes the headache
49
00:01:40,800 --> 00:01:43,240
of managing dozens of vendor relationships.
50
00:01:43,240 --> 00:01:45,120
For large enterprises, it brings all buying
51
00:01:45,120 --> 00:01:48,200
into one central place and IT and finance teams love that.
52
00:01:48,200 --> 00:01:50,440
A start-up needing a data visualization tool
53
00:01:50,440 --> 00:01:53,040
can now find it right where they manage their Azure subscription
54
00:01:53,040 --> 00:01:55,560
without needing a separate account, login, or approval
55
00:01:55,560 --> 00:01:56,360
process.
56
00:01:56,360 --> 00:01:57,320
Here's the bottom line.
57
00:01:57,320 --> 00:01:59,560
Marketplace takes the chaos of fragmented software
58
00:01:59,560 --> 00:02:02,360
buying and turns it into one streamlined experience.
59
00:02:02,360 --> 00:02:04,080
What is Microsoft Marketplace?
60
00:02:04,080 --> 00:02:05,800
So what exactly is Microsoft Marketplace?
61
00:02:05,800 --> 00:02:07,000
Here's the simplest definition.
62
00:02:07,000 --> 00:02:09,680
It's a single platform, Marketplace, Microsoft.com
63
00:02:09,680 --> 00:02:11,480
that hosts thousands of cloud solutions
64
00:02:11,480 --> 00:02:13,080
from Microsoft and its partners.
65
00:02:13,080 --> 00:02:14,600
Think of it like a digital mall.
66
00:02:14,600 --> 00:02:17,120
Every vendor has passed Microsoft's validation,
67
00:02:17,120 --> 00:02:18,800
every product is ready to buy,
68
00:02:18,800 --> 00:02:21,560
and every purchase is backed by the same infrastructure
69
00:02:21,560 --> 00:02:24,280
that runs Azure and Microsoft 365.
70
00:02:24,280 --> 00:02:26,440
A lot of people think Marketplace is just an app store.
71
00:02:26,440 --> 00:02:27,280
It's not.
72
00:02:27,280 --> 00:02:30,040
An app store sells you software you download to your phone.
73
00:02:30,040 --> 00:02:31,720
Marketplace sells you infrastructure,
74
00:02:31,720 --> 00:02:34,320
virtual machines, containers, manage databases.
75
00:02:34,320 --> 00:02:37,320
It also sells consulting services from certified partners
76
00:02:37,320 --> 00:02:40,920
and AI agents that plug directly into Microsoft 365 copilot.
77
00:02:40,920 --> 00:02:42,040
This isn't just software.
78
00:02:42,040 --> 00:02:44,800
It's the full stack from the server up to the user interface.
79
00:02:44,800 --> 00:02:46,000
Let me give you a bit of history.
80
00:02:46,000 --> 00:02:48,600
Microsoft used to run two separate marketplaces.
81
00:02:48,600 --> 00:02:50,640
Azure Marketplace for technical buyers
82
00:02:50,640 --> 00:02:52,160
and app source for business users.
83
00:02:52,160 --> 00:02:55,000
Separate sites, separate catalogs, separate experiences.
84
00:02:55,000 --> 00:02:57,080
A few years ago, Microsoft combined them
85
00:02:57,080 --> 00:02:58,800
into one unified catalog.
86
00:02:58,800 --> 00:03:02,480
Now Marketplace.Microsoft.com acts as the single front door.
87
00:03:02,480 --> 00:03:03,520
When you search for a solution,
88
00:03:03,520 --> 00:03:05,320
it pulls from both storefronts at once.
89
00:03:05,320 --> 00:03:07,160
The split still exists underneath.
90
00:03:07,160 --> 00:03:08,480
We'll get to that in a moment,
91
00:03:08,480 --> 00:03:10,320
but the experience is now seamless.
92
00:03:10,320 --> 00:03:11,480
The reach here is huge.
93
00:03:11,480 --> 00:03:14,080
Marketplace surfaces solutions to 95%
94
00:03:14,080 --> 00:03:16,880
of the Fortune 500 companies that use Azure,
95
00:03:16,880 --> 00:03:18,120
not a small audience.
96
00:03:18,120 --> 00:03:19,920
These are the world's biggest enterprises
97
00:03:19,920 --> 00:03:22,160
actively looking for tools to run their business.
98
00:03:22,160 --> 00:03:23,640
And it's not just Azure customers.
99
00:03:23,640 --> 00:03:27,680
Marketplace also reaches 400 million monthly active teams users
100
00:03:27,680 --> 00:03:31,400
and 20 million paid Microsoft 365 co-pilot seats.
101
00:03:31,400 --> 00:03:33,200
When a partner lists their solution here,
102
00:03:33,200 --> 00:03:34,720
it doesn't just sit on a shelf.
103
00:03:34,720 --> 00:03:36,880
It appears inside the tools people use every day.
104
00:03:36,880 --> 00:03:38,640
So think of Marketplace like a digital mall.
105
00:03:38,640 --> 00:03:40,400
Every vendor is pre-screened.
106
00:03:40,400 --> 00:03:42,240
Every product can be bought with a click
107
00:03:42,240 --> 00:03:45,680
and everything ties into your existing Microsoft relationship.
108
00:03:45,680 --> 00:03:48,360
It's the single place where cloud software gets discovered,
109
00:03:48,360 --> 00:03:49,400
bought and delivered,
110
00:03:49,400 --> 00:03:51,960
or within the ecosystem you're already using.
111
00:03:51,960 --> 00:03:55,080
The two doors, Azure Marketplace versus AppSource.
112
00:03:55,080 --> 00:03:56,760
Now here's where people get confused.
113
00:03:56,760 --> 00:03:59,040
Microsoft Marketplace has two storefronts,
114
00:03:59,040 --> 00:04:01,440
same catalog underneath, but two different doors,
115
00:04:01,440 --> 00:04:04,080
one for technical buyers and one for business users.
116
00:04:04,080 --> 00:04:06,600
Azure Marketplace is for the technical crowd,
117
00:04:06,600 --> 00:04:08,840
developers, IT pros, cloud engineers,
118
00:04:08,840 --> 00:04:10,760
the people who think in terms of infrastructure.
119
00:04:10,760 --> 00:04:12,480
When you browse Azure Marketplace,
120
00:04:12,480 --> 00:04:14,560
you'll find virtual machines, containers,
121
00:04:14,560 --> 00:04:16,280
managed applications and SaaS tools
122
00:04:16,280 --> 00:04:17,840
that run alongside Azure.
123
00:04:17,840 --> 00:04:19,880
The kind of stuff you deploy, not just install.
124
00:04:19,880 --> 00:04:23,000
For example, say you need a firewall solution from a partner.
125
00:04:23,000 --> 00:04:24,480
You'd search Azure Marketplace,
126
00:04:24,480 --> 00:04:26,600
find one pre-configured for your environment
127
00:04:26,600 --> 00:04:28,760
and deploy it directly into your Azure subscription
128
00:04:28,760 --> 00:04:29,840
with a few clicks.
129
00:04:29,840 --> 00:04:33,040
No downloading, no manual setup, it just works.
130
00:04:33,040 --> 00:04:34,080
AppSource is the other door.
131
00:04:34,080 --> 00:04:36,640
This one's for business users, marketing managers,
132
00:04:36,640 --> 00:04:38,840
sales directors, operations leads.
133
00:04:38,840 --> 00:04:41,640
The people who need tools that make their daily work easier.
134
00:04:41,640 --> 00:04:43,760
AppSource offers business applications,
135
00:04:43,760 --> 00:04:46,440
power platform solutions, teams integrations
136
00:04:46,440 --> 00:04:48,760
and Dynamics 365 add-ins.
137
00:04:48,760 --> 00:04:50,040
Think of a project management tool
138
00:04:50,040 --> 00:04:52,840
that plugs into Teams, a survey app inside Excel
139
00:04:52,840 --> 00:04:56,160
or a customer service dashboard connected to Dynamics 365.
140
00:04:56,160 --> 00:04:58,960
These are solutions you use, not ones you deploy.
141
00:04:58,960 --> 00:05:00,720
Here's an easy way to tell them apart.
142
00:05:00,720 --> 00:05:02,760
If you're an IT admin buying infrastructure,
143
00:05:02,760 --> 00:05:04,600
you'll land on Azure Marketplace.
144
00:05:04,600 --> 00:05:06,960
If you're a marketing manager buying a survey tool,
145
00:05:06,960 --> 00:05:08,320
you'll land on AppSource.
146
00:05:08,320 --> 00:05:09,520
Now here's the smart part.
147
00:05:09,520 --> 00:05:11,080
Partners can list a single solution
148
00:05:11,080 --> 00:05:12,760
in both storefronts at once.
149
00:05:12,760 --> 00:05:15,200
They submit one offer through Partner Center,
150
00:05:15,200 --> 00:05:16,680
Tag it for the right audience
151
00:05:16,680 --> 00:05:18,360
and Microsoft Surfaces it,
152
00:05:18,360 --> 00:05:19,480
wherever it fits.
153
00:05:19,480 --> 00:05:21,680
A security tool might appear in Azure Marketplace
154
00:05:21,680 --> 00:05:24,360
for the IT team and in AppSource for the business users
155
00:05:24,360 --> 00:05:26,080
who need to see its compliance reports.
156
00:05:26,080 --> 00:05:27,600
Same product, two doors.
157
00:05:27,600 --> 00:05:28,800
Think of it this way.
158
00:05:28,800 --> 00:05:31,280
Azure Marketplace is the hardware store.
159
00:05:31,280 --> 00:05:33,280
You go there for the pipes, the wiring,
160
00:05:33,280 --> 00:05:36,240
the structural stuff, AppSource is the furniture store.
161
00:05:36,240 --> 00:05:38,480
You go there for the things that make the space usable,
162
00:05:38,480 --> 00:05:40,640
same building, different aisles.
163
00:05:40,640 --> 00:05:43,120
For buyers, how procurement actually works.
164
00:05:43,120 --> 00:05:44,840
So let's walk through what it's actually like
165
00:05:44,840 --> 00:05:46,440
to buy something on Marketplace.
166
00:05:46,440 --> 00:05:47,560
You land on the site,
167
00:05:47,560 --> 00:05:49,360
type what you need into the search bar
168
00:05:49,360 --> 00:05:50,800
and browse the results.
169
00:05:50,800 --> 00:05:52,440
Each listing shows a description,
170
00:05:52,440 --> 00:05:56,080
screenshots, pricing and ratings from other customers.
171
00:05:56,080 --> 00:05:57,680
When you find something that looks right,
172
00:05:57,680 --> 00:06:00,160
you click into the product details page.
173
00:06:00,160 --> 00:06:01,920
That's where you see the real information,
174
00:06:01,920 --> 00:06:04,240
supported integrations, deployment requirements
175
00:06:04,240 --> 00:06:06,600
and whether it's eligible for certain benefits.
176
00:06:06,600 --> 00:06:08,560
Then you decide how you want to buy.
177
00:06:08,560 --> 00:06:10,560
Marketplace offers several pricing models,
178
00:06:10,560 --> 00:06:13,280
pay as you go means your build based on usage,
179
00:06:13,280 --> 00:06:15,880
by the hour, by the user, by the transaction.
180
00:06:15,880 --> 00:06:17,800
Bring your own license or BYOL,
181
00:06:17,800 --> 00:06:19,840
lets you use a license you already own
182
00:06:19,840 --> 00:06:22,640
and only pay for the Azure infrastructure underneath.
183
00:06:22,640 --> 00:06:23,920
Free trials are common.
184
00:06:23,920 --> 00:06:26,200
Most SaaS offers let you test the full product
185
00:06:26,200 --> 00:06:27,760
for a set period before committing.
186
00:06:27,760 --> 00:06:31,200
And for larger deals, partners can create custom private offers
187
00:06:31,200 --> 00:06:34,800
with negotiated pricing, special terms and dedicated support.
188
00:06:34,800 --> 00:06:37,120
Now, there's a feature called Azure consumption commitment
189
00:06:37,120 --> 00:06:38,400
or MASSIC.
190
00:06:38,400 --> 00:06:40,920
If your organization has signed an Azure agreement,
191
00:06:40,920 --> 00:06:42,600
promising to spend a certain amount
192
00:06:42,600 --> 00:06:44,360
on Azure services over time,
193
00:06:44,360 --> 00:06:45,960
eligible marketplace purchases
194
00:06:45,960 --> 00:06:47,640
count toward that commitment.
195
00:06:47,640 --> 00:06:49,600
So when you buy a partners tool through marketplace,
196
00:06:49,600 --> 00:06:52,320
that spend goes toward your existing Azure budget,
197
00:06:52,320 --> 00:06:53,520
not a separate line item.
198
00:06:53,520 --> 00:06:55,960
Your finance team doesn't need to approve a new vendor
199
00:06:55,960 --> 00:06:57,480
and your procurement department doesn't need
200
00:06:57,480 --> 00:06:59,000
to issue a new purchase order
201
00:06:59,000 --> 00:07:00,600
because the money was already allocated.
202
00:07:00,600 --> 00:07:01,960
You're just spending it smarter.
203
00:07:01,960 --> 00:07:04,040
The checkout process is fully integrated.
204
00:07:04,040 --> 00:07:05,440
When you click buy now,
205
00:07:05,440 --> 00:07:07,920
the system provisions the licenses automatically,
206
00:07:07,920 --> 00:07:09,520
users get access immediately
207
00:07:09,520 --> 00:07:11,160
and billing flows through your existing
208
00:07:11,160 --> 00:07:13,880
as your subscription or Microsoft billing agreement.
209
00:07:13,880 --> 00:07:15,680
You get one invoice at the end of the month
210
00:07:15,680 --> 00:07:17,480
covering both your Azure infrastructure
211
00:07:17,480 --> 00:07:19,160
and your marketplace software.
212
00:07:19,160 --> 00:07:21,840
No separate accounts, no manual reconciliation.
213
00:07:21,840 --> 00:07:24,400
Most SaaS offers include a free trial period
214
00:07:24,400 --> 00:07:26,360
so you can test the product with your real data
215
00:07:26,360 --> 00:07:29,840
in your real environment before committing a single dollar.
216
00:07:29,840 --> 00:07:31,280
If it works, you upgrade.
217
00:07:31,280 --> 00:07:33,960
If it doesn't, you walk away with no risk.
218
00:07:33,960 --> 00:07:35,760
That's the buyer experience in a nutshell.
219
00:07:35,760 --> 00:07:37,920
Search, compare, trial, buy,
220
00:07:37,920 --> 00:07:40,320
or within the ecosystem you're already using.
221
00:07:40,320 --> 00:07:42,920
And because everything ties back to your Microsoft agreement,
222
00:07:42,920 --> 00:07:44,640
procurement becomes a background process
223
00:07:44,640 --> 00:07:47,160
instead of a roadblock for partners.
224
00:07:47,160 --> 00:07:48,640
Why list on marketplace?
225
00:07:48,640 --> 00:07:50,240
Now let's flip the camera around.
226
00:07:50,240 --> 00:07:51,880
Why would a software company put their product
227
00:07:51,880 --> 00:07:53,160
on Microsoft marketplace?
228
00:07:53,160 --> 00:07:54,120
What's in it for them?
229
00:07:54,120 --> 00:07:55,920
The numbers tell a pretty clear story.
230
00:07:55,920 --> 00:07:58,120
A study by Omdia found that 88% of partners
231
00:07:58,120 --> 00:08:00,240
say marketplace drives their revenue growth.
232
00:08:00,240 --> 00:08:02,880
75% say it helps them close deals faster.
233
00:08:02,880 --> 00:08:05,040
And 69% report larger deals
234
00:08:05,040 --> 00:08:07,120
than they'd get through direct sales alone.
235
00:08:07,120 --> 00:08:08,640
Those aren't small improvements.
236
00:08:08,640 --> 00:08:11,160
They're major shifts in how a business operates.
237
00:08:11,160 --> 00:08:13,880
Think about the reach when a partner lists on marketplace,
238
00:08:13,880 --> 00:08:15,920
their solution doesn't just sit on a website waiting
239
00:08:15,920 --> 00:08:16,840
to be found.
240
00:08:16,840 --> 00:08:20,480
It surfaces inside the tools millions of people use every day.
241
00:08:20,480 --> 00:08:23,040
It appears in the Azure portal for IT teams
242
00:08:23,040 --> 00:08:26,560
shows up in the Microsoft 365 admin center for business users
243
00:08:26,560 --> 00:08:28,560
and integrates into teams, co-pilot,
244
00:08:28,560 --> 00:08:30,480
and the places where work actually happens.
245
00:08:30,480 --> 00:08:32,520
That's organic distribution that would cost a fortune
246
00:08:32,520 --> 00:08:33,880
to build from scratch.
247
00:08:33,880 --> 00:08:35,320
Then there's the CoSEL opportunity.
248
00:08:35,320 --> 00:08:37,960
Microsoft's CoSEL program lets their own sales team
249
00:08:37,960 --> 00:08:40,240
recommend partner solutions to customers.
250
00:08:40,240 --> 00:08:43,440
And starting in 2026, CoSEL eligibility requires marketplace
251
00:08:43,440 --> 00:08:44,240
presence.
252
00:08:44,240 --> 00:08:46,280
If you want a Microsoft account executive
253
00:08:46,280 --> 00:08:48,640
to pitch your product during a customer meeting,
254
00:08:48,640 --> 00:08:51,200
it needs to be transactable on marketplace.
255
00:08:51,200 --> 00:08:52,560
That's a strong incentive.
256
00:08:52,560 --> 00:08:54,240
Marketplace isn't just another channel.
257
00:08:54,240 --> 00:08:55,720
It's becoming the channel.
258
00:08:55,720 --> 00:08:58,400
Microsoft also sweetens the deal with marketplace rewards
259
00:08:58,400 --> 00:09:02,160
now included in the ISV success program at no extra cost.
260
00:09:02,160 --> 00:09:04,240
This gives partners access to marketing support,
261
00:09:04,240 --> 00:09:06,800
technical resources, and even Azure sponsorship.
262
00:09:06,800 --> 00:09:08,560
Free Azure credits they can use to offset
263
00:09:08,560 --> 00:09:11,200
customer deployment costs or fund free trials.
264
00:09:11,200 --> 00:09:12,680
The better a partner performs,
265
00:09:12,680 --> 00:09:15,400
the more benefits they unlock in this performance-based system
266
00:09:15,400 --> 00:09:16,800
that rewards growth.
267
00:09:16,800 --> 00:09:18,800
And the results speak for themselves.
268
00:09:18,800 --> 00:09:22,000
Take Xamode AI, a company that builds AI-powered automation
269
00:09:22,000 --> 00:09:22,640
tools.
270
00:09:22,640 --> 00:09:24,920
After listing managed applications on marketplace,
271
00:09:24,920 --> 00:09:28,200
they saw a 6X increase in revenue, not a small bump,
272
00:09:28,200 --> 00:09:30,640
but a complete transformation, or integral,
273
00:09:30,640 --> 00:09:33,560
a company that pivoted from systems integrator to ISV.
274
00:09:33,560 --> 00:09:36,000
They reached $100 million in Azure-consumed revenue
275
00:09:36,000 --> 00:09:37,920
every six months through marketplace alone.
276
00:09:37,920 --> 00:09:41,120
Within a year of listing, they had customers in 44 countries,
277
00:09:41,120 --> 00:09:43,280
and the next year over 100 countries,
278
00:09:43,280 --> 00:09:46,640
all without building a massive field sales team.
279
00:09:46,640 --> 00:09:48,680
For partners, the message is clear.
280
00:09:48,680 --> 00:09:51,040
Marketplace isn't a side experiment.
281
00:09:51,040 --> 00:09:53,920
It's the primary route to market for any software company
282
00:09:53,920 --> 00:09:56,840
building on Microsoft's platform.
283
00:09:56,840 --> 00:10:00,200
New and coming soon, intelligent discovery and AI apps,
284
00:10:00,200 --> 00:10:02,560
Microsoft isn't slowing down with marketplace.
285
00:10:02,560 --> 00:10:05,920
Two big changes are reshaping how you find and buy software
286
00:10:05,920 --> 00:10:06,760
right now.
287
00:10:06,760 --> 00:10:08,400
First up, smart search.
288
00:10:08,400 --> 00:10:10,520
This new experience understands plain English.
289
00:10:10,520 --> 00:10:13,000
Instead of typing keywords like project management
290
00:10:13,000 --> 00:10:16,080
tool for teams, you can just ask a normal question.
291
00:10:16,080 --> 00:10:19,880
Find me a collaboration agent that works with Microsoft 365.
292
00:10:19,880 --> 00:10:21,280
The search bar gets the context.
293
00:10:21,280 --> 00:10:24,240
It turns your question into suggested filters, industry,
294
00:10:24,240 --> 00:10:25,720
category, use case.
295
00:10:25,720 --> 00:10:28,120
And those suggestions update as you ask more questions,
296
00:10:28,120 --> 00:10:30,360
say you're looking for agents, you type that in.
297
00:10:30,360 --> 00:10:32,000
The results narrow to agent solutions,
298
00:10:32,000 --> 00:10:34,640
then you ask which ones work best for collaboration.
299
00:10:34,640 --> 00:10:37,520
The system keeps the filters, category and topic in sync,
300
00:10:37,520 --> 00:10:40,640
updating the suggestions so the next best step is always right there.
301
00:10:40,640 --> 00:10:43,120
It handles comparisons in a genuinely useful way too.
302
00:10:43,120 --> 00:10:44,080
Pick a few products.
303
00:10:44,080 --> 00:10:46,560
In seconds, marketplace builds a side-by-side table
304
00:10:46,560 --> 00:10:48,720
that explains the differences in plain language.
305
00:10:48,720 --> 00:10:51,040
You can even type in extra factors that matter to your company
306
00:10:51,040 --> 00:10:53,680
even like how does each one handle compliance?
307
00:10:53,680 --> 00:10:55,880
And the comparison updates on the spot.
308
00:10:55,880 --> 00:10:58,640
It highlights which solution fits best and tells you why.
309
00:10:58,640 --> 00:11:01,360
Product detail pages now have an interactive chat too.
310
00:11:01,360 --> 00:11:03,720
Instead of reading through every section you just ask,
311
00:11:03,720 --> 00:11:05,480
does this integrate with teams?
312
00:11:05,480 --> 00:11:07,880
Or what's the pricing for 50 users?
313
00:11:07,880 --> 00:11:10,040
The assistant answers based on the publisher's listing
314
00:11:10,040 --> 00:11:11,280
and technical specs.
315
00:11:11,280 --> 00:11:13,560
It surfaces what matters for deployment, adoption,
316
00:11:13,560 --> 00:11:15,680
and governance without you having to dig.
317
00:11:15,680 --> 00:11:18,720
Second, there's a whole new category for AI apps and agents.
318
00:11:18,720 --> 00:11:21,280
Marketplace now has a section dedicated to solutions
319
00:11:21,280 --> 00:11:24,600
that plug directly into Microsoft 365 Copilot.
320
00:11:24,600 --> 00:11:25,840
These aren't just chatbots.
321
00:11:25,840 --> 00:11:27,720
They're agents that automate workflows,
322
00:11:27,720 --> 00:11:29,400
pull data from multiple systems,
323
00:11:29,400 --> 00:11:31,960
and take actions inside the tools you already use.
324
00:11:31,960 --> 00:11:33,680
Microsoft showed a great demo.
325
00:11:33,680 --> 00:11:36,240
Carlos, an IT leader at a company called Zava,
326
00:11:36,240 --> 00:11:39,160
needs to help his operations team automate business processes.
327
00:11:39,160 --> 00:11:41,160
He searches Marketplace, finds UI paths,
328
00:11:41,160 --> 00:11:44,520
a Gentech automation tool, and sees its Azure benefit eligible,
329
00:11:44,520 --> 00:11:47,240
meaning it counts toward their existing Azure commitment.
330
00:11:47,240 --> 00:11:50,000
He also sees it offers a Copilot agent integration.
331
00:11:50,000 --> 00:11:51,720
He buys it through the standard checkout,
332
00:11:51,720 --> 00:11:53,880
provisions licenses in the admin center,
333
00:11:53,880 --> 00:11:55,480
and assigns it to his team.
334
00:11:55,480 --> 00:11:57,040
The next day, Crystal from Operations
335
00:11:57,040 --> 00:12:01,040
opens Microsoft 365 Copilot and sees the new UI path agent
336
00:12:01,040 --> 00:12:01,880
in a sidebar.
337
00:12:01,880 --> 00:12:04,440
She starts using it right away, full functionality inside
338
00:12:04,440 --> 00:12:05,120
Copilot.
339
00:12:05,120 --> 00:12:07,360
That's the goal, discover, buy, deploy, use,
340
00:12:07,360 --> 00:12:09,120
all within the same ecosystem.
341
00:12:09,120 --> 00:12:12,960
No separate logins, no manual setup, no procurement delays.
342
00:12:12,960 --> 00:12:15,360
Smart search and AI agents are turning Marketplace
343
00:12:15,360 --> 00:12:17,080
from a catalog you browse into a partner
344
00:12:17,080 --> 00:12:19,120
that helps you find exactly what you need.
345
00:12:19,120 --> 00:12:21,840
And that's only going to get faster.
346
00:12:21,840 --> 00:12:24,120
How it all connects, the integration story.
347
00:12:24,120 --> 00:12:26,440
So we've covered the pieces, the two storefronts,
348
00:12:26,440 --> 00:12:29,760
how buying works, why partners list there, what's coming with AI.
349
00:12:29,760 --> 00:12:32,120
But here's the part that ties everything together.
350
00:12:32,120 --> 00:12:33,400
And most people miss it.
351
00:12:33,400 --> 00:12:34,920
Marketplace isn't just a catalog.
352
00:12:34,920 --> 00:12:38,000
It's a commerce engine wired into the Microsoft ecosystem.
353
00:12:38,000 --> 00:12:39,920
When you buy a SAS app through Marketplace,
354
00:12:39,920 --> 00:12:42,320
it's not just a purchase, it's a provisioning event.
355
00:12:42,320 --> 00:12:45,240
The system creates the subscription, assigns the licenses,
356
00:12:45,240 --> 00:12:48,000
and makes the app available in your tenant automatically.
357
00:12:48,000 --> 00:12:50,320
Your users don't need to sign up for a separate account.
358
00:12:50,320 --> 00:12:51,960
They don't need to remember a different login.
359
00:12:51,960 --> 00:12:55,760
The app just shows up in their Microsoft 365 app launcher
360
00:12:55,760 --> 00:12:57,640
or in Teams or inside Copilot.
361
00:12:57,640 --> 00:12:59,360
That integration goes deeper than convenience.
362
00:12:59,360 --> 00:13:02,080
It's tied to identity through Microsoft EntraID.
363
00:13:02,080 --> 00:13:03,840
When a partner lists their solution,
364
00:13:03,840 --> 00:13:06,560
it inherits your company's security policies,
365
00:13:06,560 --> 00:13:09,640
multi-factor authentication, conditional access,
366
00:13:09,640 --> 00:13:11,760
data residency rules, all the governance
367
00:13:11,760 --> 00:13:13,840
you've already set up for Microsoft 365
368
00:13:13,840 --> 00:13:15,560
applies to the Marketplace app too.
369
00:13:15,560 --> 00:13:17,520
No gaps, no shadow-wide.
370
00:13:17,520 --> 00:13:18,640
Billing works the same way.
371
00:13:18,640 --> 00:13:21,000
The purchase goes onto your existing Azure subscription
372
00:13:21,000 --> 00:13:22,680
or Microsoft billing agreement.
373
00:13:22,680 --> 00:13:24,240
One invoice at the end of the month
374
00:13:24,240 --> 00:13:27,280
covers your Azure infrastructure, your Microsoft 365
375
00:13:27,280 --> 00:13:29,680
seats, and your Marketplace software.
376
00:13:29,680 --> 00:13:31,400
Finance teams don't need to reconcile
377
00:13:31,400 --> 00:13:33,200
three different vendor invoices.
378
00:13:33,200 --> 00:13:35,880
Procurement doesn't need to issue separate purchase orders.
379
00:13:35,880 --> 00:13:37,600
It all rolls up into the same system.
380
00:13:37,600 --> 00:13:40,080
For partners, this integration means their solution
381
00:13:40,080 --> 00:13:41,560
doesn't just sit on a shelf.
382
00:13:41,560 --> 00:13:43,440
It appears in context when someone searches
383
00:13:43,440 --> 00:13:47,200
for file sharing in Teams, relevant Marketplace apps show up.
384
00:13:47,200 --> 00:13:50,600
When an admin browsers the Microsoft 365 admin center,
385
00:13:50,600 --> 00:13:53,880
partner solutions appear alongside Microsoft's own tools.
386
00:13:53,880 --> 00:13:57,040
When a user opens Copilot, available agents are right there.
387
00:13:57,040 --> 00:13:58,880
The distribution is built into the platform.
388
00:13:58,880 --> 00:14:00,240
Here's the aha moment.
389
00:14:00,240 --> 00:14:02,640
Marketplace is the glue between a customer's need
390
00:14:02,640 --> 00:14:04,800
and a curated validated solution
391
00:14:04,800 --> 00:14:07,280
all inside the ecosystem they're already using.
392
00:14:07,280 --> 00:14:09,000
The customer doesn't go shopping for software.
393
00:14:09,000 --> 00:14:11,760
They go shopping for a solution to a problem they have right now.
394
00:14:11,760 --> 00:14:14,960
Marketplace surfaces, what fits, handles the transaction,
395
00:14:14,960 --> 00:14:17,240
provisions access, and manages billing.
396
00:14:17,240 --> 00:14:18,480
Everything just works.
397
00:14:18,480 --> 00:14:21,760
That's why 75% of partners say Marketplace helps them
398
00:14:21,760 --> 00:14:22,960
close deals faster.
399
00:14:22,960 --> 00:14:25,360
It's not just the visibility, it's that procurement friction
400
00:14:25,360 --> 00:14:26,000
disappears.
401
00:14:26,000 --> 00:14:29,120
The customer doesn't need to evaluate a new vendor's security.
402
00:14:29,120 --> 00:14:30,920
They don't need to negotiate a new contract.
403
00:14:30,920 --> 00:14:33,320
They don't need to set up a new billing relationship.
404
00:14:33,320 --> 00:14:35,440
The deal goes from interesting to done
405
00:14:35,440 --> 00:14:37,640
in the time it takes to click a button.
406
00:14:37,640 --> 00:14:39,080
Actionable takeaways.
407
00:14:39,080 --> 00:14:40,800
All right, let's make this practical.
408
00:14:40,800 --> 00:14:43,040
Here's what you should do next, depending on who you are.
409
00:14:43,040 --> 00:14:44,880
If you're a buyer, someone who actually
410
00:14:44,880 --> 00:14:48,280
purchases software for your company, head over to Marketplace.
411
00:14:48,280 --> 00:14:50,160
Microsoft.com to start your search.
412
00:14:50,160 --> 00:14:52,520
That's where you'll find vetted solutions that actually work
413
00:14:52,520 --> 00:14:53,720
with what you already have.
414
00:14:53,720 --> 00:14:55,640
And it's the single place to check before you sign up
415
00:14:55,640 --> 00:14:56,480
or anything new.
416
00:14:56,480 --> 00:14:58,480
If it's on Marketplace, you'll avoid the headache
417
00:14:58,480 --> 00:15:00,720
of managing yet another vendor relationship.
418
00:15:00,720 --> 00:15:03,840
Now, look for the Azure Benefit Eligible Badge.
419
00:15:03,840 --> 00:15:05,680
That little tag tells you the purchase counts
420
00:15:05,680 --> 00:15:08,160
to what your Azure consumption commitment.
421
00:15:08,160 --> 00:15:10,400
If your company already has an Azure agreement,
422
00:15:10,400 --> 00:15:12,320
buying through Marketplace lets you use budget
423
00:15:12,320 --> 00:15:13,800
you've already committed.
424
00:15:13,800 --> 00:15:15,400
And that's essentially free money.
425
00:15:15,400 --> 00:15:16,800
Don't leave it sitting on the table.
426
00:15:16,800 --> 00:15:17,920
Here's another tip.
427
00:15:17,920 --> 00:15:19,160
Use the free trials.
428
00:15:19,160 --> 00:15:21,760
Most SaaS offers on Marketplace let you test the full product
429
00:15:21,760 --> 00:15:24,640
before buying no credit card required and no sales call.
430
00:15:24,640 --> 00:15:25,520
Just click and try.
431
00:15:25,520 --> 00:15:28,360
If it works upgrade, if it doesn't move on, zero risk.
432
00:15:28,360 --> 00:15:31,160
If you're a partner building software
433
00:15:31,160 --> 00:15:34,000
on Microsoft's platform, your next move is straightforward.
434
00:15:34,000 --> 00:15:35,280
List your solution on Marketplace.
435
00:15:35,280 --> 00:15:38,520
Starting in 2026, co-sale support requires it.
436
00:15:38,520 --> 00:15:41,200
If you want Microsoft sales team recommending your product,
437
00:15:41,200 --> 00:15:43,360
it needs to be transactable on Marketplace.
438
00:15:43,360 --> 00:15:45,440
And that's not a suggestion, it's the new reality.
439
00:15:45,440 --> 00:15:46,840
Start with a transactable offer,
440
00:15:46,840 --> 00:15:48,680
either SaaS or a managed application.
441
00:15:48,680 --> 00:15:50,600
That's what unlocks the billing infrastructure,
442
00:15:50,600 --> 00:15:52,840
the Mac benefits and the co-sale incentives.
443
00:15:52,840 --> 00:15:54,400
A simple listing gets you visibility,
444
00:15:54,400 --> 00:15:57,040
but a transactable offer gets you actual revenue.
445
00:15:57,040 --> 00:15:58,840
Take advantage of Marketplace rewards too.
446
00:15:58,840 --> 00:16:00,760
It's included in the ISV success program
447
00:16:00,760 --> 00:16:03,120
at no extra cost, giving you marketing support,
448
00:16:03,120 --> 00:16:05,320
technical resources, and as your sponsorship
449
00:16:05,320 --> 00:16:06,880
to offset deployment costs.
450
00:16:06,880 --> 00:16:09,080
Even if you're a small shop with a single product,
451
00:16:09,080 --> 00:16:11,840
those benefits can accelerate your growth significantly.
452
00:16:11,840 --> 00:16:13,640
Your next move, go to Marketplace,
453
00:16:13,640 --> 00:16:15,160
Microsoft.com today.
454
00:16:15,160 --> 00:16:16,440
Search for something your team needs
455
00:16:16,440 --> 00:16:17,680
and see what's available.
456
00:16:17,680 --> 00:16:20,480
Chances are your next software purchase is already there.
457
00:16:20,480 --> 00:16:24,320
So that's Microsoft Marketplace, not just a store,
458
00:16:24,320 --> 00:16:27,040
but the central hub where Cloud Software gets discovered,
459
00:16:27,040 --> 00:16:28,440
bought and delivered.
460
00:16:28,440 --> 00:16:30,400
Whether you're buying or selling Marketplace,
461
00:16:30,400 --> 00:16:32,240
reduces friction and unlocks reach,
462
00:16:32,240 --> 00:16:33,960
you couldn't get any other way.
463
00:16:33,960 --> 00:16:35,920
Subscribe on your favorite podcast platform
464
00:16:35,920 --> 00:16:37,040
and share this with a colleague
465
00:16:37,040 --> 00:16:38,920
who's just starting their cloud journey.
466
00:16:38,920 --> 00:16:40,560
I'll see you in the next episode.
