Microsoft Marketplace now offers multiyear contract durations up to five years for SaaS, Professional Services, and Virtual Machine Software Reservations. This enables customers to lock in pricing and terms for longer periods, providing stability and savings, while partners benefit from predictable revenue and stronger customer relationships. Bullet points:
Microsoft Marketplace Now Supports Multiyear Contracts
Microsoft just rolled out a game-changing update for its marketplace. Partners and customers can now lock in contract terms for up to five years. This new feature offers more flexibility and stability, especially for SaaS, Professional Services, and Virtual Machine Software Reservations (VMSR).
What’s New?
The biggest update is the introduction of multiyear contract durations. Customers can choose from four or five-year terms for SaaS and Professional Services. For VMSR, two, four, and five-year options are now available. These options apply globally and support all marketplace currencies.
Besides longer contracts, Microsoft also allows flexible billing schedules. Partners can offer quarterly, semiannual, or bimonthly billing, making it easier to match customer budgets and preferences.
Why It Matters to Customers and Partners
Longer contract durations mean customers gain pricing stability and can better forecast expenses. Partners benefit by building stronger relationships and reducing the hassle of frequent renewals. Predictable revenue streams also become more reliable.
“Our customers value five-year contracts for the stability and long-term value they provide. We can now focus on building lasting relationships—while driving predictable revenue.” – Sue Wilkinson, Global Director of Partners, IFS
How Partners Can Get Started
To offer multiyear contracts, partners must first create or update a public offer that includes these extended durations. Once published, private offers can be configured with the new contract terms.
Note that existing agreements can’t be extended mid-term. Customers will need to cancel and repurchase with the new duration. Also, multiyear contracts for Cloud Solution Provider (CSP) offers will be enabled later this summer.
Eligibility and Resources
Any company in the Microsoft AI Cloud Partner Program can sell with multiyear contracts. Joining is free, and partners need to accept the marketplace publisher agreement and publish offers with extended terms.
Microsoft provides plenty of support, including the ISV Success program, to help partners publish and maximize their marketplace reach.
“Microsoft’s recent launch of multiyear contracts and flexible billing has been a game changer, simplifying the buying process and enhancing the customer experience.” – Sue Wilkinson, Global Director of Partners, IFS
Final Thoughts
Microsoft’s multiyear contract durations bring more predictability and ease to the marketplace. For tech-savvy partners and customers, this means less admin hassle and more focus on growth. If you’re selling or buying SaaS or VM software, now’s the time to explore these new options.
For more details, check out Microsoft’s official documentation and FAQs on multiyear contracts and flexible billing.
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