Being one of the original co-sell partners, we know the benefits of the partnership we have with Microsoft. Co-sell provides more ways to reach more customers to drive joint revenue and shared business success. From unparalleled growth opportunities to extending your reach, you will be able to differentiate your business. Since the start of the program in 2017 until the end of 2019, co-sell activities have generated $9.5 billion in contracted partner revenue, and over 36,000 IP co-sell wins. Don’t those numbers sound like it’s something worth getting involved in?
Why Co-Sell?
Co-selling allows partners like you to work directly with Microsoft on joint selling opportunities to reach a large community of customers and create new sales opportunities that can increase business growth. To begin your journey co-selling with Microsoft, you need to have a commercial-ready solution or service in place, an engaged sales team, a strong go-to-market strategy, and meet additional criteria. Microsoft’s IP Co-Sell initiative offers partners that are eligible for unique opportunities to reach more customers and increase revenue through Azure Marketplace and AppSource.
Four ways Microsoft Partners can take advantage of when trying to co-sell are:
1. Publish your application, solution, or offer to a Microsoft marketplace like AppSource or Azure Marketplace.
2. Gain partner-to-partner relationships through Cloud Solution provider engagements.
3. Sell through inside sales.
4. Sell through enterprise field sellers
The Microsoft partner-to-partner community is continuously expanding. What is that exactly? It is an agreement between two or more partners with defined, mutually beneficial business outcomes. This includes entering new markets, differentiated offers, growing customer base, and/or increase of customer wallet share. There are three major areas where the co-sell program can benefit a partner: Azure IP, Business Applications, and Modern Workplace Teams.
“Our tremendous success working with Microsoft on the GTM and co-sell motions has delivered our highest sales year, doubled our pipeline of opportunities, and increased our head count 50 percent in 12 months. Partnering effectively with Microsoft is our single biggest market differentiator,” Damon Kelly, CEO at Enlighten Designs. You can extend your reach, expand your deals, and accelerate wins.
A new approach to generate the ultimate sales success will make you understand why co-sell matters to sellers. It is essential for partners to adopt strategies to employ different avenues of sales opportunities. Partners bring the industry expertise and finished solutions that commercial customers are looking for. Three partner selling motions are:
- Sell through partner – Partners sell and/ or resell Microsoft technology through their own sellers.
- Services Co-sell – Sellers and partners collaborate to sell a partner’s project and/or managed service with Microsoft technology embedded.
- IP Co-sell – Sellers and partners collaborate to sell a partner’s repeatable and packaged IP solution.
It is beneficial for sellers to leverage partner-built solutions via the co-sell model to maintain customer success and Microsoft revenue goals. Co-sell happens with qualified sales leaders who are shared, accepted, and succeeded against Microsoft-managed customers. Another benefit of co-selling is Microsoft’s growth opportunities for sellers will also be compensated for commercially available package third party co-sell solutions within Azure, Dynamics 365/ PowerApps, and Modern Workplace Teams. Sellers can earn scorecard credit for each of their qualifying wins.
IP Co-Sell Opportunities
An IP co-sell ready solution is a commercially available, packaged, third-party solution with more than 50% repeatable IP code within Microsoft Azure or Microsoft Dynamics. These are specifically ‘app-like’ solutions that have undergone additional technical review to qualify for co-sell status. IP co-sell ready solutions are eligible for sales incentives for Azure and Dynamics. Are you interested in learning more? Here I break down the benefits and requirements for Azure, Business Applications, and Teams IP co-Sell.
Azure IP Co-Sell
Accelerate and improve your IP co-sell for Azure by building solutions with >50% repeatable IP code on Azure. These are the solutions that have undergone technical review and will qualify for the co-sell ready status. The journey to establishing IP co-sell ready solutions with Azure includes wins that are incentive-eligible 3rd party solutions that have a managed Enterprise and Corporate customer-base that are processed via deal registration. Azure IP co-sell’s deal validation and review requirements are:
- Solution tagging – Using incentive tag, Azure IP co-sell.
- Contract parameters – Partner’s annual contract value is a minimum of $25k, which will be divided over 6 years.
- Timeline – Deal document must have been signed, and the partner must register the won deal within 30 days of signature.
- Segmentation – Deals must be signed with an Enterprise or Corporate end-customer.
- Opportunity Age – opportunities/ success engagement ID must be entered into PSC, Partner Center or MSX before the contract.
Business Applications IP Co-Sell
How do you accelerate IP co-sell for Business Applications? Utilizing solutions built on Dynamics 365 customer engagement, Finance & Operations, or PowerApps, where your partner has signed up specifically for Business Applications ISV, Connect program. A few benefits are Microsoft sellers will be paid an additional sales incentive against the billed targets. This is based on the partner invoice amounts at standard or premium for Business Applications ISV Connect program engagement. The journey for Business Applications co-sell deal validation and review requirements are:
- Solution tagging – Using incentive tag, Biz App premium, Biz App standard.
- Contract parameters – Partner’s annual contract value of $1k per month for SMC and $3k per month for Enterprise.
- Segmentation – Deals must be signed with an Enterprise or Corporate end-customer.
- Opportunity Age – opportunities/ success engagement must be accepted into PSC/Partner Center or MSX before the contract sign date.
- True-ups or up-sell – These deals will NOT count as a scorecard win, but the seller will count it toward Biz Apps attainment.
Teams IP Co-Sell
Accelerate Teams IP co-sell with solutions built on Teams within the Azure Active Directory Single Sign-On integration technology. These solutions have been published to AppSource. You will be able to expand the reach of your Teams-built applications and connect with the biggest customer base in the industry through joint selling with the Microsoft sales team. The monthly active usage driven within this motion contributes to all-up Teams Monthly Active Usage attainment. Also, local and area teams can earn scorecard credit for each qualifying win. The Teams co-sell deal validation and review requirements are:
- Solution tagging – Using incentive tag, Teams IP co-sell (Scorecard only).
- Minimum usage threshold – To count a scorecard win, the application must drive the minimum Teams monthly active usage (MAU).
- Segmentation – Deals must be signed with an Enterprise or Corporate end-customer.
- Opportunities must originate as outbound (Microsoft shared) in order to count against the scorecard.
- Deal registration is NOT required.
The Microsoft Partner co-sell program is a major aspect of our business. We thrive from and with our partnerships. The co-sell program and the overall Microsoft partner community is built on trust. It is designed to provide your business with opportunities to share your success and collaboration within. If you are looking to get involved with DCG + co-sell, contact us today. We have a team of developers, consultants, solution architects, and a sales team willing to answer any questions you may have or guide you through the co-sell process. We would love the opportunity to partner with you!
