Transitioning SaaS Offers with Multi-Year Pricing from AppSource to Azure Marketplace
When a SaaS transactable offer on Microsoft AppSource includes a pricing plan for more than 1 year, the offer is delisted from AppSource and becomes available on Azure Marketplace. This is due to the platform's structure: AppSource primarily supports monthly or annual subscription models for SaaS offers. Any pricing model that exceeds 1 year (e.g., 2-year, 3-year plans) is outside the scope of AppSource’s transaction capabilities. When a SaaS solution introduces multi-year pricing, it is automatically transitioned to Azure Marketplace, which can accommodate longer-term contracts and subscription models (such as 2-year, 3-year, or longer terms). Azure Marketplace is designed for more complex transactions, including multi-year deals, and supports deeper infrastructure integration and contract management features compared to AppSource. Thus, any SaaS offer that requires multi-year pricing terms will shift from AppSource to Azure Marketplace, where such transactions can be handled effectively.Challenges Business Users Face with Microsoft's Transactable Offers in the Marketplace
Here’s a summary of the challenges faced by business users when purchasing solutions through Microsoft's transactable offer setup in the marketplace: Limited Pricing Flexibility: Business users may find it challenging to secure multi-year or customized pricing as AppSource primarily supports monthly or annual subscription plans. This limits their ability to negotiate bulk discounts or tailored pricing, common in traditional procurement. Complex Procurement Processes: The setup of transactable offers on Azure Marketplace often requires coordination with IT departments for deployment, making it cumbersome for non-technical business users to manage purchases independently. The process may feel less intuitive compared to traditional software procurement methods. Integration Issues with Existing Systems: Many businesses have third-party procurement platforms or internal systems for billing and spend management. The reliance on Microsoft’s native billing system may not align with these existing tools, leading to difficulty in reconciling purchases, tracking invoices, and managing budgets efficiently. Lack of Contract Negotiation: Business users often rely on personalized contract negotiations for larger purchases. Microsoft’s marketplace setup offers standardized pricing without room for customized contracts, making it hard for customers to negotiate terms, volume discounts, or extended payment plans. Limited Cross-Platform Compatibility: Since Microsoft’s marketplace is primarily focused on the Microsoft ecosystem, it may not be the best fit for organizations that operate in multi-cloud environments or use non-Microsoft tools. This limits the flexibility for businesses looking for cross-platform solutions. Lack of Detailed Usage Reports for Business: Business users may find it difficult to get granular visibility into usage and costs, which can make it harder to track software ROI or align expenditures with department budgets. While basic reporting is available, it may not provide the level of detail needed for large organizations. Summary: The way Microsoft’s transactable offer setup is structured presents challenges for business users, including limited pricing flexibility, complex procurement coordination, and difficulty integrating with existing systems. These issues can create friction for organizations seeking more customized contracts, clearer usage visibility, and better alignment with multi-cloud environments.Transactable vs. non-Transactable marketplace offer?
Peer ISV experiences appreciated. Throughout this fiscal Msft has pushed hard towards the marketplace transactability with various initiatives and this was strongly presented also at Ignite. The list of arguments from Msft is extensive (buyer behavior, co-sell, multi-party offers, MACCs, etc...). However I would like to here real-life experiences from peer ISVs who have both transactable and non-transactable offers / have migrated the existing non-transactable offer to transactable offer: Impact on lead generation and closed deals? Impact on co-sell among Msft and/or CSPs? Does MACC eligibility matter? Any other pros / cons? Bonus question: If you have the same offer on both Azure Marketplace and AppSource: Which one has been the place to be? Or both? Thanks a million in advance! 🙏
