Azure IP co-sell transitions from PRACR to Marketplace-first model in FY27
Why this matters: Directly changes the transaction and reporting mechanism for co-sell credit, affecting revenue recognition and partner incentive eligibility.
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Microsoft is retiring the Partner Reported Azure Consumed Revenue (PRACR) co-sell mechanism and replacing it with a Marketplace-first model effective July 1, 2026. Partners must now transact through Microsoft Marketplace to receive co-sell credit. This represents a fundamental shift in how Azure IP co-sell eligibility and revenue attribution are tracked.
What changed
- PRACR is discontinued as the co-sell reporting mechanism starting July 1, 2026.
- Azure IP co-sell credit now requires transacting through Microsoft Marketplace.
- Partners must onboard offers to the Marketplace to remain co-sell eligible in FY27.
- Revenue attribution for co-sell purposes moves from partner-reported to Marketplace-transacted.
- Change takes effect at the start of Microsoft FY27 on July 1, 2026.
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