Microsoft co-sell in FY27: how software companies get Microsoft's sellers to introduce them
Updated 6 Nov 2026 · FY27 (1 October 2026 to 30 June 2027) · Reviewed by an ex-Microsoft team member
The short answer. Co-sell is when Microsoft's own sellers introduce your software to their big customers. It is not a payment, but it is often worth more than every incentive combined. In FY27 you are eligible with $100,000 of Marketplace billed sales, $100,000 of Azure use from your solution, or a $1 million Azure commitment. It runs through Marketplace, and Microsoft still calls it a pilot.
In plain words. Microsoft's salespeople have targets. When a customer buys your software through Marketplace, that sale counts toward their target. So they have a reason to introduce you to large companies that already have budget set aside for Microsoft. You still choose the accounts and register each deal yourself.
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Why it works
The customer already has the budget. Large organizations commit in advance to a level of Microsoft spend. Buying your software through Marketplace can use that money, so there is no new budget to approve.
The Microsoft salesperson gains from your sale. A Marketplace deal with an eligible partner counts toward their own sales target, so helping you win helps them too.
Does this apply to you?
Probably yes, if:
- You are enrolled in Frontier Accelerate for Marketplace (free).
- You have a transactable offer.
- You have passed one of the three lines: $100,000 of Marketplace billed sales over 12 months, $100,000 of Azure use from your solution, or a $1 million+ Azure commitment.
Not yet, if you are under $100,000. Move renewals you already invoice directly through Marketplace to cross the line. Azure credit does not count toward the $100,000.
Be careful, because these are Microsoft's emerging criteria and the program is still a pilot in FY27. It can change.
How it works, step by step
- Microsoft's sellers can see your offer. Once you are eligible, it shows up in the tools their salespeople search.
- You choose the accounts. Large customers with Microsoft budget and a problem your product solves.
- You register each deal, so the Microsoft seller can see it and get credit for it. Skip this and nothing happens.
- The seller helps you close. Introductions, joint calls and help with procurement. The deal is billed through Marketplace.
What does it mean for you as a CEO?
This is often the biggest prize in the program, because it is a way to be introduced to companies you could not easily reach. In the FY27 guide's made-up example, a 40-person company crosses $100,000 late in its first year, becomes eligible, and closes two enterprise deals through Marketplace worth $180,000 a year combined.
Being eligible is only the start. Turning eligibility into introductions is the hard part: choosing the right accounts and registering every deal.
What changed in FY27?
Co-sell now runs through Marketplace and counts billed sales. That is why the first step is to become transactable.
Watch: why a co-sell deal gets stuck
Recorded before Microsoft's July 2026 program changes. It shows how a Microsoft seller looks at a co-sell deal. For the current FY27 eligibility rules, use this guide.
The video's advice in short: submit the referral, confirm who you are engaging with at Microsoft, build a "better together" story for that seller, and follow up with notes of what you agreed.
Frequently asked questions
What is co-sell?
Microsoft's own salespeople introducing your software to their big customers, because your sales count toward their targets.
How do I become eligible?
With $100,000 of Marketplace billed sales over 12 months, $100,000 of Azure use from your solution, or a $1 million+ Azure commitment. You also need a transactable offer and the free membership.
Does Azure credit count toward the $100,000?
No.
Do I have to register my deals?
Yes. Register each deal so the Microsoft seller can see it and get credit. If you skip this, nothing happens.
Is it a payment?
No. There is no ceiling because it is not a payment. It shows up as pipeline and enterprise deals.
Want the full picture?
Everything here is also in our complete guide to Microsoft FY27 Marketplace incentives, with plain-words notes for newcomers. Get the complete FY27 guide
Not sure which incentive fits your company?
Ask for your free Microsoft Incentives Assessment: a personalized report of every incentive your company can claim, what each is worth, and the order to claim them. Free, no obligation. No Partner Center login needed to start. Ask for your free Assessment
The other FY27 incentives
- Azure sponsorship
- AI Build & Publish for Marketplace
- AI Build & Publish for the Agent Store
- Customer Assessment & POV
- Customer Migrate & Modernize
Based on Microsoft's FY27 Partner Investments material and the Frontier Accelerate for Marketplace pages on Microsoft Learn. Microsoft may change its programs at any time, and every payout needs Microsoft's approval. Amounts are in USD.
