Building a Co-Sell Motion on AWS and Azure Marketplaces for SaaS

Cloud marketplace procurement has shifted from a niche enterprise buying pattern to a mainstream channel for SaaS software purchasing. In 2023, AWS Marketplace processed over $4 billion in software transactions; by 2025, that figure crossed $7 billion, according to AWS Partner Network data. The driver is structural: enterprise IT budgets increasingly contain committed cloud spend drawdowns — Enterprise Discount Program (EDP) commitments on AWS and Azure Consumption Commitments (MACC) on Microsoft — that buyers want to apply against software purchases. A SaaS vendor listed on these marketplaces can close deals faster simply because procurement doesn't require a new budget line item.

But listing and co-selling are fundamentally different activities. Thousands of ISVs list products on AWS and Azure Marketplace and close almost no deals through those listings because they treat the marketplace as a passive distribution channel rather than an active co-sell relationship. According to Bessemer Venture Partners' GTM benchmarks, ISVs that achieve co-sell designation and actively manage cloud provider relationships close 4–6x more marketplace-sourced deals per year than passive listed ISVs, at 2–3x higher average deal size.

This post covers the operational mechanics of building a real co-sell motion — not a listing strategy, but an active sales partnership with cloud provider field teams that generates qualified enterprise pipeline.

Understanding Co-Sell Designations and What They Actually Unlock

Co-sell programs are formal designations by cloud providers that grant ISVs access to field sales collaboration. The two dominant programs are AWS ISV Accelerate and Microsoft IP Co-sell (the latter being a prerequisite for Azure marketplace transaction incentives and field AE engagement). Each has eligibility criteria and delivers meaningfully different benefits than a standard marketplace listing.

AWS ISV Accelerate requires an active marketplace listing, at least one production customer reference, and passing a business case review with the AWS Partner team. Benefits include: reduced transaction fees (3% vs. 5%), access to AWS Customer Engagement (ACE) pipeline tool where you can submit opportunities for co-sell support, eligibility for AWS field AE co-sell on qualified enterprise accounts, and joint business planning support from an AWS Partner Development Manager (PDM).

Microsoft IP Co-sell Ready requires an active offer in Partner Center, a solution brief, and a customer reference. Achieving Co-sell Incentivized status (the tier that unlocks field AE engagement and financial incentives) additionally requires proof of a significant Azure consumption component in your solution. Benefits include: Microsoft field seller access through Partner Center, eligibility for co-sell financial incentives on qualifying deals, and inclusion in Microsoft field seller tools (which are actively used by Azure sales teams when positioning solutions to enterprise accounts).

The practical difference between a listing and co-sell designation is access to human sales capacity. When a cloud provider field AE is working an enterprise account on a major cloud migration deal, they look for ISV solutions to bundle into the overall architecture. Co-sell designated partners appear in the tools those AEs use; passive-listed ISVs do not.

Building Your Cloud Alliance Relationship Before Pursuing Deals

The most common mistake in cloud marketplace strategy is treating co-sell as a sourcing channel rather than a partnership investment. Companies that list, achieve co-sell designation, and then wait for referrals from cloud AEs consistently underperform. The relationship with your PDM and regional cloud AEs requires active development the same way any channel relationship does.

Start with your PDM. Request a quarterly joint business planning (JBP) session and come prepared with three things: a written ICP document (industry, company size, buyer persona, common use cases), a list of your top 10 current enterprise customers with their cloud provider accounts identified, and a 12-month pipeline forecast showing accounts where cloud provider co-sell could accelerate the deal. PDMs are evaluated on the business metrics of their ISV partners — making their job easier with prepared data consistently leads to more active field introductions.

Next, build relationships with 2–3 regional field AEs in your primary verticals. Your PDM can make these introductions, but you need to nurture them directly. The best format is a 30-minute "solution briefing" where you show the field AE exactly which of their enterprise accounts your product fits, why it complements (not competes with) cloud services, and what the typical co-sell motion looks like. Give them a one-pager they can use with clients — most field AEs manage dozens of ISV relationships and will only engage when the value prop is immediately clear and the sales motion is easy to explain.

The ACE and Partner Center Workflow That Actually Generates Pipeline

ACE (for AWS) and Partner Center (for Microsoft) are the operational tools through which co-sell opportunities are shared and tracked. Using them correctly is the difference between a co-sell motion that generates pipeline and one that generates compliance documentation.

For AWS co-sell, submit opportunities to ACE when: you have an identified decision-maker at a company that has an AWS EDP commitment, you're at a stage where cloud provider validation would accelerate procurement, or you need an introduction to an AWS account team that has an existing relationship with the buyer. The key practice is pre-qualifying before submitting — ACE opportunities submitted without a named contact, clear use case, and estimated close date are routinely deprioritized by AWS field teams. Quality of submissions matters more than volume.

For Microsoft co-sell, Partner Center deal registration works similarly: register deals early in the cycle (identified opportunity, not late-stage), include the specific Azure workloads your solution integrates with, and note the estimated Azure consumption impact of the deal. Microsoft field AEs are incentivized on Azure consumption, so framing your co-sell value in terms of Azure consumption impact increases engagement.

The operational cadence that works is a weekly 30-minute review of active co-sell opportunities with your PDM. Track: opportunities submitted this week, responses received, deals where field AE engagement was requested vs. delivered, and closed deals in the trailing 90 days. This review creates accountability and gives your PDM visibility into what's working and what needs escalation.

See partner-sourced pipeline measurement for how to attribute and report on co-sell deals versus other partner types.

Pricing and Packaging for Marketplace Procurement

Marketplace procurement introduces pricing constraints that direct sales doesn't face. Buyers who want to consume their cloud spend commitment prefer annual upfront commitments over monthly billing, need to see a clear enterprise price list for procurement approval, and often require a private offer rather than the public list price.

Structure your marketplace pricing in three tiers:

Public list price — the price that appears on your marketplace listing. Set this at or above your typical direct list price to preserve pricing integrity. Buyers who see a lower marketplace price than what they were quoted direct immediately question the direct relationship.

Private offer pricing — negotiated pricing for enterprise deals. AWS and Azure both support private offers where you can offer custom pricing, custom contract terms, and multi-year commitments. Private offers account for 60–80% of enterprise marketplace transaction volume for most mature ISVs. Build private offer generation into your enterprise AE workflow.

EDP/MACC draw eligibility — confirm with your PDM that your listing is eligible for cloud spend commitment drawdown. Not all marketplace listings are automatically eligible; some require specific listing type configurations. This eligibility is the #1 procurement reason enterprise buyers choose marketplace.

Factor in marketplace transaction fees (3% for co-sell designated partners) when setting your list price. At 3% of contract value on a $100,000 ACV deal, the fee is $3,000 — a manageable cost that is typically offset by the faster close cycle and reduced direct sales time on co-sell deals. See SaaS marketplace revenue share terms for a detailed analysis of marketplace fee economics.

Measuring Co-Sell ROI and Deciding When to Invest More

Co-sell is an investment that takes 6–12 months to reach positive ROI. The ramp includes: time to achieve co-sell designation (3–6 months), time to build working relationships with 3–5 cloud AEs (3–6 months), and time for the first co-sell sourced deals to close (3–6 months after relationship building). Companies that expect revenue in month three consistently underinvest before the motion matures and then incorrectly conclude that co-sell doesn't work for their product.

The investment benchmark: according to Bessemer Venture Partners, a well-run cloud co-sell motion at a $5–20M ARR SaaS company requires one dedicated alliance manager (or a VP of Partnerships with 30–40% time allocation to cloud alliances), PDM relationship management, and quarterly travel to partner summits. Total cost: $150–250K per year fully loaded. This investment starts generating positive ROI when co-sell sourced pipeline reaches $1–2M per year, which typically occurs in month 9–15 for companies that invest actively from the start.

Track the following metrics monthly to manage the ramp:

For companies evaluating whether to build a co-sell motion versus investing the same resources in other partner types, see partner-led growth vs product-led for the comparative framework.

Conclusion

Cloud marketplace co-sell is one of the highest-leverage GTM investments available to enterprise-focused SaaS companies, but only when treated as an active partnership rather than a passive listing strategy. The economics are compelling — lower friction procurement, access to cloud provider field sales capacity, and deal sizes that consistently outperform direct equivalent deals — but the payoff is delayed and the investment is real.

The operational discipline that separates successful co-sell programs from stalled ones is relationship depth over listing breadth. Two cloud AEs who actively introduce you into their enterprise accounts are worth more than 50 passive marketplace transactions. Invest in the PDM relationship, build the ACE/Partner Center workflow into your weekly sales operations, and price for marketplace procurement from the start.

Use SaasDash's partnership attribution module to track co-sell sourced vs. co-sell influenced pipeline separately from direct outbound — the benchmark comparison between these deal types is the clearest evidence for scaling your cloud alliance investment.