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The premise is straightforward.<\/p>\n\n\n\n
All major hyperscalers now operate marketplaces. AWS. Google. Microsoft.<\/p>\n\n\n\n
But the strategy behind them is more nuanced.<\/p>\n\n\n\n
\u201cThe idea is, if you build on our stack, you\u2019re going to sell to customers on our stack,\u201d Rook said.<\/p>\n\n\n\n
That creates a powerful flywheel.<\/p>\n\n\n\n
Software vendors publish applications into the marketplace. Customers already using the platform can discover and deploy those applications quickly. And partners can step in to sell, implement, and support those solutions.<\/p>\n\n\n\n
It is not just a storefront.<\/p>\n\n\n\n
It is infrastructure for transactions.<\/p>\n\n\n\n
\u201cOur product is the marketplace,\u201d Rook said. \u201cIt\u2019s the engine that drives all of this.\u201d<\/p>\n\n\n\n
For partners, the implications are significant.<\/p>\n\n\n\n
Traditionally, selling into enterprise accounts has been constrained by existing relationships. If a large customer buys Microsoft licenses directly, partners may have limited access to that revenue stream.<\/p>\n\n\n\n
The marketplace changes that dynamic.<\/p>\n\n\n\n
\u201cThis gives you the opportunity to monetize your Microsoft relationship even when you\u2019re not selling Microsoft software,\u201d Rook said.<\/p>\n\n\n\n
That shift is subtle but important.<\/p>\n\n\n
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Partners can now sell third party solutions, security tools, storage platforms, or vertical applications through the marketplace and still participate in large enterprise deals tied to Microsoft environments.<\/p>\n\n\n\n
The mechanics vary depending on the scenario.<\/p>\n\n\n\n
In some cases, Microsoft handles billing, collections, and payouts. In others, partners manage the customer relationship and Microsoft settles with vendors behind the scenes.<\/p>\n\n\n\n
\u201cAll hyperscaler marketplaces work this way to some degree,\u201d Rook said.<\/p>\n\n\n\n
What differentiates Microsoft\u2019s approach, according to the team, is how tightly the marketplace integrates with its broader ecosystem.<\/p>\n\n\n\n
\u201cWe think about the marketplace as an extension of Microsoft Cloud,\u201d Maddox said.<\/p>\n\n\n\n
That includes Azure, Teams, Copilot, and other services.<\/p>\n\n\n\n
For customers, that means solutions are often pre integrated.<\/p>\n\n\n\n
For partners, it simplifies positioning.<\/p>\n\n\n\n
\u201cIf you\u2019re selling into a Microsoft environment, these solutions are already built to work together,\u201d Maddox said.<\/p>\n\n\n\n
There are also financial incentives.<\/p>\n\n\n\n
One of the more notable is the ability to apply purchases toward pre committed cloud budgets.<\/p>\n\n\n\n
\u201cCustomers have buying power they want to fulfill,\u201d Maddox said.<\/p>\n\n\n\n
That can increase deal sizes.<\/p>\n\n\n\n
If a customer has already committed spend to Microsoft, buying through the marketplace becomes more attractive than purchasing outside of it.<\/p>\n\n\n\n
For partners, that can unlock larger opportunities.<\/p>\n\n\n\n
\u201cDeal sizes are substantially bigger when you\u2019re selling into those budgets,\u201d she said.<\/p>\n\n\n\n
The model also expands reach.<\/p>\n\n\n\n
\u201cThis is our scale engine for going to market,\u201d Maddox said.<\/p>\n\n\n\n
That statement reflects a broader shift within Microsoft.<\/p>\n\n\n\n
Historically, the marketplace was more focused on software vendors. Now, it is becoming increasingly channel driven.<\/p>\n\n\n\n
\u201cWe\u2019re very much open for a channel led relationship,\u201d Maddox said.<\/p>\n\n\n\n
That openness is lowering barriers to entry.<\/p>\n\n\n\n
\u201cIt\u2019s a really low bar to get started,\u201d Rook said, noting that partners can begin selling through the marketplace without complex onboarding requirements.<\/p>\n\n\n\n
That accessibility is important for smaller partners.<\/p>\n\n\n\n
It also enables what Maddox described as a form of democratization.<\/p>\n\n\n\n
\u201cWe\u2019ve seen success with unmanaged partners that aren\u2019t tied to a Microsoft partner manager,\u201d she said.<\/p>\n\n\n\n
In practice, that means smaller firms can participate in larger deals if they bring specialized expertise.<\/p>\n\n\n\n
Rook shared an example of a relatively small partner that secured a major enterprise deal by leveraging its expertise in a specific security platform.<\/p>\n\n\n\n
The takeaway is that domain knowledge can now open doors that were previously difficult to access.<\/p>\n\n\n\n
At the same time, the marketplace expands what partners can sell.<\/p>\n\n\n\n
\u201cIf you\u2019re already selling Microsoft licensing, this expands the number of applications you can offer,\u201d Rook said.<\/p>\n\n\n\n
That can turn a single product sale into a broader solution engagement.<\/p>\n\n\n\n
It also aligns with how customers are buying.<\/p>\n\n\n\n
Rather than sourcing individual tools from multiple vendors, many organizations are looking for integrated solutions that fit within their existing cloud environments.<\/p>\n\n\n\n
The marketplace becomes a central hub for that process.<\/p>\n\n\n\n
Competition among hyperscalers remains intense.<\/p>\n\n\n\n
Each marketplace has its own strengths and gaps. Some applications may appear on one platform before another. Others may be optimized for specific environments.<\/p>\n\n\n\n
But the direction is consistent.<\/p>\n\n\n\n
More software is being transacted through cloud marketplaces.<\/p>\n\n\n\n
More partners are participating in those transactions.<\/p>\n\n\n\n
And more revenue is flowing through these ecosystems.<\/p>\n\n\n\n
According to Microsoft, channel driven business through the marketplace is growing rapidly, with figures suggesting significant year over year expansion.<\/p>\n\n\n\n
That growth reflects both increased adoption and a broader shift in how software is sold.<\/p>\n\n\n\n If you liked this post, you\u2019ll love one of the the leading global business communications and technology events since 1999, the ITEXPO #TECHSUPERSHOW<\/a>, Feb 9-11, 2027 Fort Lauderdale, Florida.<\/p>\n\n\n\n Don\u2019t forget the collocated MSP Expo<\/a> \u2013 just for managed service providers!<\/p>\n\n\n\n Aside from his role as CEO of TMC<\/a> and chairman of ITEXPO<\/a> #TECHSUPERSHOW Feb 9-11, 2027, Rich Tehrani is CEO of RT Advisors<\/a> and a Registered Representative (investment banker) with and offering securities through Four Points Capital Partners LLC <\/a>(Four Points) (Member FINRA\/SIPC). He handles capital\/debt raises as well as M&A. RT Advisors is not owned by Four Points.<\/em><\/p>\n\n\n\n The above is not an endorsement or recommendation to buy\/sell any security or sector mentioned. No companies mentioned above are current or past clients of RT Advisors.<\/p>\n\n\n\n The views and opinions expressed above are those of the participants. While believed to be reliable, the information has not been independently verified for accuracy. Any broad, general statements made herein are provided for context only and should not be construed as exhaustive or universally applicable.<\/p>\n\n\n\n![\"\"](\"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-content\/uploads\/2025\/05\/image-10.png\")
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