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Wiz uncovers the alchemy of the Microsoft commercial marketplace

A 2024 Microsoft Partner of the Year Award winner, Wiz went all-in on a unique go-to-market strategy—and it's transforming the way business gets done.

October 7, 2024

Serving security teams around the globe—including 40% of the Fortune 100—Wiz was founded in 2020 to provide a unified cloud security platform for prevention, active detection, and response. In just 18 months, and with 1,200 employees and over $100 million in annual recurring revenue, the Microsoft partner experienced near-exponential growth thanks to their unique business strategy, which centers on the Microsoft commercial marketplace.

With more than 70% of Wiz's business billed through cloud marketplaces—and the Microsoft commercial marketplace being a large percentage—they've cut their sales cycle by up to 20%. Ayla Anderson, Microsoft Global Alliance Manager at Wiz, believes a cloud marketplace-first approach is the future of business—and Wiz's meteoric rise is the proof.

Their success and innovation in the marketplace earned them a 2024 Microsoft Partner of the Year Award for Commercial Marketplace in the Business Transformation category. "This award is really a representation of the strategy that we took and Wiz's partnership with Microsoft, and it's an exciting recognition," said Anderson.

Choosing the commercial marketplace

Before Wiz went all-in on the Microsoft commercial marketplace, they started with an enterprise-first sales approach. Because of that, Anderson explained, many of Wiz's customers were also Microsoft Azure customers—which meant they had cloud consumption commitments and an established relationship with Microsoft.

With the understanding of who their customers were—and how they could make it easier to do business with them—Wiz's leadership team knew what tapping into the commercial marketplace could also mean for their own business. "At a very early stage, we hired a VP of Alliances who fully understood the potential of marketplace. Then we started seeing internal data showing all the benefits ... it was more efficient," said Anderson. "With [the commercial marketplace], we're basically taking the last part of the deal and shortening it from weeks to a few days. We're tying all the ends and creating this triangle between the customer, Microsoft, and Wiz to make this process faster and more affordable for the customers through the marketplace."

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"We're tying all the ends and creating this triangle between the customer, Microsoft, and Wiz to make this process faster and more affordable for the customers through the marketplace."

—Ayla Anderson, Microsoft Global Alliance Manager, Wiz

Wiz's multifaceted marketplace approach

When it comes to capturing opportunity in the commercial marketplace, Wiz takes full advantage of the platform's capabilities and initiatives to drive profitability while strengthening their customer relationships.

Co-sell

For Wiz, collaborative selling—or co-sell—is one of the most powerful aspects of the marketplace. "Co-sell could be a revenue generator, it could be a pipeline accelerator, it could be a relationship builder," Anderson said. "When you launch a proactive co-sell approach, Microsoft collaborates with you on an opportunity, they help you throughout the sales process, and then the deal goes through the marketplace. I think this is a super important piece in an ISV's strategy today. You cannot ignore it, because if you don't do it, your competitors will."

Marketplace Rewards

Through Marketplace Rewards, Wiz worked with Microsoft to create a credit incentive program to promote offers with customers through the marketplace. During a three-month campaign, Wiz used Azure sponsorship credits to close over a dozen competitive deals, resulting in a 1,500% ROI—and motivating more customers to adopt the marketplace.

The Wiz Alliances team

To proactively promote their solutions on the marketplace, Wiz established a dedicated internal team. Each seller that joins Wiz goes through the commercial marketplace and co-sell onboarding and certification. From there, they work closely with their Microsoft Alliance team to review their pipeline and come up with strategies for promoting their marketplace solutions for each deal.

Because of the customer and partnership value Wiz experiences with the marketplace, the Wiz Alliances team is incentivized to generate marketplace deals, and they have a dedicated commission plan for opportunities—which sparked their massive revenue growth in the past year.

Scaling through the channel

"Wiz is not only a marketplace-first company, but a partner-first company in our sales strategy—and that means that almost all the deals in our pipelines have a channel partner," said Anderson. Channel partners serve as a bridge between Microsoft partners and customers, collaborating with Microsoft to market, sell, and support products and services. "They not only personally know the decision-makers, but they also know the customer's cloud environment, needs, budgets, and KPIs."

With multiparty private offers, Wiz can scale through channel partners who have trusted relationships with customers who Wiz may not otherwise have access to. Through the marketplace, Wiz can send a private offer to the channel partner, who can then sell to the customer—simplifying the sales and procurement process for everyone involved.

The earlier Wiz can get channel partners involved in the process, the better—so they can help nurture the prospect relationships all the way up through the process of closing a deal. "And by that point, we want to be in a place where the prospect already feels happy with the engagement and results," Anderson said.

The channel partner plays a vital role in that, which is why Wiz is so intentional about onboarding them with certifications and a deep understanding of the Wiz vision and product. Wiz also has co-sell eligible Azure solutions, which means 100% of the channel partner customer's purchase counts toward their Azure cloud consumption commitment—giving them more value for their investment. "That really helped us close so many deals we probably wouldn't have closed if there wasn't a channel partner along the way," said Anderson.

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"I'm excited about the marketplace because I think this is just the beginning, and we are going to see the increased use of marketplace by customers, channel partners, and ISVs over the next couple of years."

—Ayla Anderson, Microsoft Global Alliance Manager, Wiz

Transforming the way business is done, one partner at a time

With their experience and success, Wiz wants to empower other partners who develop software to make the most of what the marketplace has to offer. "Other partners and people in the industry come to us to hear our story of how and why we use the marketplace in our go-to-market strategy, and we tell them about the technical part, the operational part, and how we use it for beneficial co-sell conversations," Anderson said.

Wiz knows firsthand how cloud marketplaces can drive revenue and efficiency, but more than that, they believe in their potential to transform entire industries.

"I'm excited about the marketplace because I think this is just the beginning, and we are going to see the increased use of marketplace by customers, channel partners, and ISVs over the next couple of years," Anderson said. "It will be exponential, and we're thrilled to be in front of the curve."

And Wiz is at the forefront of the marketplace-first movement. While they continue paving the way for other partners to capture the marketplace opportunity, Wiz is determined to hit their next milestone: billing 100% of their revenue through cloud marketplaces. Backed by their partnership with Microsoft and innovative approach, they just might.

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