Azure IP co-sell shifts from PRACR to Marketplace-first model starting FY27
Why this matters: Eliminates an existing co-sell mechanism, directly altering how partners earn co-sell credit and potentially affecting revenue recognition.
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Starting FY27 (July 1, 2026), Microsoft retired Partner Reported Azure Consumed Revenue (PRACR) as the primary co-sell mechanism for Azure IP co-sell. Partners are now required to route co-sell activity through the Microsoft commercial Marketplace as the default execution model. This shift affects how partners qualify for and track co-sell at scale.
What changed
- PRACR retired as the primary Azure IP co-sell mechanism effective July 1, 2026.
- Marketplace-first execution became the required model for co-sell at scale in FY27.
- Partners must transact through the Microsoft commercial Marketplace to receive co-sell credit.
- Co-sell qualification and tracking processes changed from PRACR reporting to Marketplace transaction data.
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