Microsoft Allows Partners To Sell Professional Services On Marketplace

Partners can also attach services to a private offer with software if applicable.

Microsoft has started to allow partners to sell professional services on its marketplace in the United States, Canada and United Kingdom, a potential opportunity for solution providers looking for a new way to acquire and transact with customers.

Partners can sell professional services as standalone private offers in AppSource or Azure Marketplace, the Redmond, Wash.-based tech giant said Thursday. A transactable professional service on the marketplace can streamline the customer buying experience by merging the service onto the Azure invoice.

They can also attach services to a private offer with software if applicable–but partners can’t include services as part of a software-as-as-a-service (SaaS) or other software offer, according to Microsoft. More geographies will become available for the offer in the future.

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Microsoft Marketplace

CRN has reached out to Microsoft for comment.

Kathy Durfee, CEO and founder of Lakewood Ranch, Fla.-based Microsoft partner TechHouse, told CRN that the option to allow transactable services on the marketplace is interesting, but she wanted more information on whether these would count toward trailing 12-month (TTM) goals for the marketplace.

She also wanted to know that partners wouldn’t have to wait a long time should a collections process be required for non-paying customers.

“If we are selling professional services to a client we have already identified, the question becomes is there a benefit to having Microsoft handle the transaction instead of us,” Durfee said.

Transactable Professional Services

Partners must have a seller identification in the U.S., U.K. or Canada. Customers must have a billing account with a sold-to address in those areas as well, according to Microsoft.

Microsoft’s professional services categories range from assessments to briefings, customer support, implementation, migration, proofs of concept and workshops.

For taxes, partners select the category their service falls under and the corresponding tax code is applied. Partners should pick the most relevant category even if the offer applies to multiple. Microsoft doesn’t disclose tax rates for each category. A professional service in the marketplace can have any value.

Professional services also are not Azure benefit eligible, and customers can’t use their Microsoft Azure Consumption Commitment (MACC) toward a professional service purchase.

As for private offers, those allow for partners and customers to negotiate custom terms and custom pricing, according to the vendor.

Multiple vendors have been investing in their marketplaces and marketplace strategies, with Pax8 unveilinga new marketplace over the summer and Amazon Web Services unleashing new AWS Marketplace benefits this year.

Salesforce recently revealed plans for a Tableau Einstein Alliance partner community, with an option for products and services made by members to enter the Salesforce AppExchange and an upcoming Tableau Marketplace.