RCP Channel BriefingShort Takes from Microsoft’s Channel Community
Blog archive
Microsoft Expands Multiyear Contract Options for Marketplace Offers
Earlier this month, Microsoft announced the availability of extended multiyear contract lengths -- up to five years -- for offers in its commercial marketplace, whether they're public or private. This update, effective as of June 5, allows customers to lock in pricing and service terms for longer periods, which is useful for organizations that are trying to plan their budgets or simply need their costs to be predictable.
The new contract terms apply to Software as a Service (SaaS) and professional services offers, as well as virtual machine software reservations. Previously, contract durations were limited to shorter terms, but now Microsoft partners can offer one-, two-, three-, four- and five-year agreements. With these extended durations, Microsoft is aiming to appease customers seeking long-term commitments while giving partners more stable revenue streams.
Microsoft's move aligns with the broader industry trend of vendors offering longer-term contracts to meet enterprise demand for predictable costs and service continuity. For instance, Amazon Web Services and Google Cloud have introduced similar multiyear agreements to accommodate customer requirements for long-term planning.
The "RCP Channel Briefing" blog is researched, fact-checked, edited and updated by the editors of RCPmag.com, with writing assistance from AI.
Posted by Redmond Channel Partner magazine staff on June 06, 2025