When it comes to licensing Microsoft Products customers are often faced with the complex task of choosing the right contract vehicle (Open, MPSA, Enterprise Agreement) and licensing type (perpetual, Subscription, Online, Software Assurance?) – there is a solution for (almost) any requirement customers may have.
In this article we focus on the purchasing Options for Microsoft Azure – Microsoft’s Cloud Service offerings. This is not a dive into how each individual Service is licensed – Microsoft has over 50 offerings, Services are priced using different metrics / service / geography, etc – we would like to help demystifying the purchasing options available to customers when considering Microsoft Azure.
The two options customers typically consider are:
- Direct through www.azure.com
- Through the Microsoft Enterprise Agreement
For completeness it is to mention that there is also the option to purchase Azure through the indirect Microsoft Product and Services Agreement (MPSA).
Good to know
Monetary commitment under the Enterprise Agreement
- Must be consumed within enrolment year- it is not possible to move unused monetary commitment from one enrolment year to the next
- An order for additional monetary commitment must be placed for the full remainder of the contract – for example if the contract has 18 months to run the commitment order would be for 6 + 12 months – whereby
- Commitment for 6 months will be billed when the order is placed – commitment must be used by next anniversary
- Commitment for the subsequent 12 months will be billed at next anniversary
- Monetary commitment for future enrolment years (years that have not started) can be reduced prior to anniversary. Ensure to notify your Licensing Solution Provider early enough about the intent to reduce future commitment
12 months pre-pay offer on www.azure.com
For the direct purchase under www.azure.com there is a pre-pay option whereby services benefit from 5% discount on everything consumed up to the 12 months prepaid amount – the minimum commitment in GBP for 12 months is £3,670 – this commitment must be used within the 12 months period, consumption above will not benefit from the 5% discount.
This offer reminds of the old EA offerings where customers paid more for a Service if the consumption went above the initial commitment- This does no longer exist in the Enterprise Agreement. However, it could be interesting (subject to pricing considerations) for customers who would like to place a fixed upfront commitment order for 12 months only – an option that is not available under the Enterprise Agreement.
At Cloud Optics we are experienced in advising customers how to best chose their purchasing options for Azure Services and can highlight points worth investigating with Microsoft when a solution is priced up. Please do not hesitate to get in touch with me
Types of Azure offerings – Services / Plans / Marketplace
Pre-Pay offer https://azure.microsoft.com/en-us/offers/ms-azr-0026p/
invoicing of Marketplace offerings https://azure.microsoft.com/en-us/marketplace/faq/
Request invoice https://azure.microsoft.com/en-us/pricing/invoicing/