Microsoft Azure Monetary Commitment Changes

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In December 2017, Microsoft introduced two changes to the way Azure Monetary Commitment works in an Microsoft Enterprise Agreement (EA).

Historically, Monetary Commitment was an amount paid upfront annually for the Azure consumption services which was decremented as services were used, with any unused Monetary Commitment being forfeited at the end of the year. This remains as an “Annually Prepaid Option” but now there’s a “Fully Prepaid Option” too. Under this option a customer pays for 36 months of Monetary Commitment upfront but the funds are available for the whole of the Enrolment term. This means there are also some changes in the minimum amount of Monetary Commitment required: € 3,035.88 under the Enterprise Enrolment and € 30,358.80 under the Server and Cloud Enrolment.

The second change is the removal of the Consumption Allowance: previously customers with a Direct EA could pay for any Azure overage at anniversary if they remained within the Consumption Allowance (50% of the original Monetary Commitment). Now all new and renewing EA customers will pay for overage on a quarterly basis.

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