ISV Connect: Dynamics 365 ISVs calculate the impact of Microsoft's new rules (Part 2)

November 1 2019

As ISV Connect becomes the new reality for ISVs operating in the Microsoft Power Platform and Dynamics 365 enterprise channels, partners bound by the new rules governing revenue sharing, AppSource, sales, marketing, and development are reaching a range of conclusions about the program's impact on their businesses.

From interviews with ISVs across the channel, the impact of ISV Connect is expected to vary dramatically. The universal set of rules appear set to help some companies while hindering others. The program could also have broad effects as investors and lenders examine changes to risk levels and valuations for ISVs entrenched in this ecosystem.

Key factors for a vendor will include their maturity in the channel, their technical footprint within the Microsoft products, their likelihood of aligning with Microsoft sellers' interests, and their existing operating model.

To understand the various perspectives, lets examine the outlook in terms of various ISV observations that have lead them to different views on the program overall.


ISVs are already paying enough to Microsoft in other indirect ways, say some partner executives who are unhappy with the new fees being levied. For example, ISVs buy Azure resources for their clients, often using only lightweight integration points to Microsoft's first party solutions.

These executives provide a list of ways in which ISVs have already demonstrated their commitment to and investment in the Microsoft channel. These include:

About Jason Gumpert

As the editor of, Jason oversees all editorial content on the site and at our events, as well as providing site management and strategy. He can be reached at

Prior to co-founding, Jason was a Principal Software Consultant at Parametric Technology Corporation (PTC), where he implemented solutions, trained customers, managed software development, and spent some time in the pre-sales engineering organization. He has also held consulting positions at CSC Consulting and Monitor Group.

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