Exploring ISV Sales Strategies on Azure Marketplace: A Comprehensive Guide

As mentioned in my previous blog, Cloud Marketplaces as a Strategic Route to Market, Independent Software Vendors (ISVs) have a tremendous opportunity to expand their reach and grow their business by listing their solutions on the Azure Marketplace. The Azure Marketplace is a hub for Microsoft’s cloud ecosystem, where businesses can find, try, and purchase solutions that complement their use of Microsoft Azure. This blog explores the various go-to-market (GTM) strategies available to ISVs on Azure Marketplace, highlighting their benefits and providing examples to illustrate their effectiveness.

Understanding Azure Marketplace

The Azure Marketplace is a digital catalog of thousands of applications and services designed to be used on Microsoft’s cloud platform, Azure. It offers ISVs a platform to reach millions of Azure customers worldwide, providing them the tools to market, sell, and manage their software solutions effectively.

Go-To-Market (GTM) Options for ISVs

When it comes to GTM strategies on Azure Marketplace, ISVs have several options to consider, each with its unique advantages. Here, we explore the primary GTM strategies:

1. Listing Solutions on Azure Marketplace

Benefits:

- Increased Visibility: By listing a solution on the Azure Marketplace, ISVs gain access to a global audience of potential customers who are already looking for solutions that integrate with Azure.

- Simplified Procurement: Azure Marketplace simplifies the buying process, making it easier for customers to purchase and deploy solutions.

- Built-in Billing and Metering: ISVs can leverage Azure’s billing system, which handles all transactions and payments, allowing them to focus on developing their solutions.

CloudCherry, a customer experience management software company, listed their solution on the Azure Marketplace to reach new customers and streamline their sales process. By leveraging Azure’s built-in billing system, they were able to focus more on their core strengths such as product development and customer success, leaving the billing process to the Azure Marketplace.

2. Azure Managed Application

Benefits:

- Managed Services: ISVs can offer their solutions as managed services, taking care of deployment, configuration, and ongoing management, providing added value to customers.

- Revenue Sharing: This model often includes a revenue-sharing agreement with Microsoft, allowing ISVs to benefit from a steady revenue stream.

- Scalability: Managed applications can scale effortlessly with customer demand, leveraging Azure’s robust infrastructure.

VMware offers its Horizon Cloud on Azure as a managed service. This approach allows customers to quickly deploy and manage virtual desktops and applications, reducing the complexity and operational overhead associated with traditional VDI solutions.

3. Azure SaaS Offerings

Benefits:

- Subscription Model: SaaS (Software as a Service) offerings on Azure Marketplace enable ISVs to adopt a subscription-based pricing model, providing predictable revenue streams.

- Customer Reach: SaaS solutions can be easily discovered and subscribed to by Azure customers, increasing market reach.

- Integration with Azure Services: SaaS solutions can be deeply integrated with other Azure services, enhancing their value proposition.

Snowflake, a cloud data platform, offers its service on Azure Marketplace. By providing a SaaS solution, Snowflake allows customers to quickly and easily access their data warehousing and analytics capabilities without the need for complex infrastructure setup, resulting in a faster procurement process and an accelerated value realization for the customer.

4. Co-Sell Program

Benefits:

- Joint Selling: The co-sell program involves partnering with Microsoft’s sales teams to jointly sell ISV solutions. This can significantly boost sales efforts and credibility.

- Access to Enterprise Customers: Through the co-sell program, ISVs can gain access to Microsoft’s extensive enterprise customer base, opening up new business opportunities.

- Incentives and Support: Microsoft provides various incentives and support to ISVs participating in the co-sell program, including marketing resources and technical assistance.

Zscaler, a cloud security company, has leveraged Microsoft’s co-sell program to expand their market reach. By collaborating with Microsoft’s sales teams, they were able to penetrate new markets and secure deals with large enterprises looking for cloud security solutions.

5. Azure Marketplace Rewards

Benefits:

- Performance-based Rewards: Azure Marketplace Rewards offers ISVs incentives based on their sales performance, encouraging growth and rewarding success.

- Marketing Support: ISVs can receive marketing support from Microsoft, including promotional opportunities and access to marketing funds.

- Technical Assistance: Microsoft provides technical assistance to help ISVs optimize their solutions for Azure and ensure a smooth customer experience.

Barracuda Networks, a provider of cloud-enabled security solutions, has benefited from Azure Marketplace Rewards. By achieving high sales performance, they received additional marketing support and resources, further boosting their visibility and sales.

Best Practices for ISVs on Azure Marketplace

To maximize the benefits of listing solutions on Azure Marketplace, ISVs should consider the following best practices:

1. Optimize Solution Listings

Ensure that the solution listing is detailed, accurate, and appealing. Include comprehensive descriptions, high-quality visuals, and customer testimonials to build credibility and attract potential buyers.

2. Leverage Azure Integrations

Take advantage of Azure’s integration capabilities to enhance the value of the solution. Integrate with popular Azure services such as Azure Active Directory, Azure Kubernetes Service, and Azure Monitor to offer a seamless experience to customers.

3. Provide Free Trials

Offering free trials can encourage potential customers to try the solution before committing to a purchase. This can lead to higher conversion rates and customer satisfaction.

4. Focus on Customer Support

Provide excellent customer support to address any issues or concerns quickly. Happy customers are more likely to become repeat buyers and advocates for the solution.

5. Engage in Co-Marketing

Partner with Microsoft for co-marketing initiatives. This can include joint webinars, case studies, and other marketing activities that increase visibility and generate leads.

In conclusion, the Azure Marketplace offers ISVs a powerful platform to market, sell, and manage their software solutions. By leveraging the various GTM strategies available, such as listing solutions, offering managed applications, providing SaaS offerings, participating in the co-sell program, and taking advantage of Azure Marketplace Rewards, ISVs can significantly enhance their reach and grow their business.

By following best practices like optimizing solution listings, leveraging Azure integrations, providing free trials, focusing on customer support, and engaging in co-marketing, ISVs can maximize their success on the Azure Marketplace.

As the cloud ecosystem continues to grow, the opportunities for ISVs on the Azure Marketplace will only expand, making it an essential component of any software vendor’s go-to-market strategy. As Microsoft SureStep Ambassadors here at 4Sight, we want to go on this journey with you and help you navigate and differentiate your offering. Please contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. to get this wonderful journey started.