Microsoft Azure Monetary Commitment renamed to Microsoft Azure prepayment

How to Use Microsoft Azure Prepayment (formerly “Azure Monetary Commitment”) for Your Cloud Services

Microsoft Azure is a cloud computing platform that offers a range of services, such as computing, storage, networking, analytics, and more. You can use Azure to build, deploy, and manage applications and solutions across a global network of data centers.

To use Azure services, you need to pay for them according to your usage. However, if you are a Microsoft Enterprise Agreement (EA) customer, you have the option to use Microsoft Azure prepayment as a payment model. This means that you can pay for Azure services in advance and get discounted pricing.

In this article, we will explain what Microsoft Azure Prepayment is, how it works, a previous name change and what are the benefits of using it.

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Microsoft Azure Monetary Commitment is now Microsoft Azure Prepayment

Microsoft Azure prepayment was formerly known as Microsoft Azure Monetary Commitment. The name change was done to ensure consistency across the platform, as well as with other Microsoft products and services. The rebranding has not impacted the service itself. The changes are just the name and the updated terminology, which is less confusing and more descriptive.

 

What is Microsoft Azure Prepayment?

Microsoft Azure prepayment is a payment model that enables EA customers to purchase Azure services in advance, which is deducted on a monthly basis as the services are used. The payment method allows organizations to budget effectively and have better control over their costs. It also gives them the flexibility to use Azure services as per their requirements, without worrying about sudden increases in costs.

 

How Does Microsoft Azure Prepayment Work?

To use Microsoft Azure prepayment, you need to have an active EA with Microsoft. An EA is a volume licensing agreement that offers flexible and cost-effective licensing options for organizations with 500 or more users or devices. For Free Expert Licensing Consultancy for your Microsoft Enterprise Agreements, please contact SCHNEIDER IT MANAGEMENT.

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As an EA customer, you can purchase a certain amount of prepayment for Azure services for a specific period of time, usually one or three years. The prepayment amount is based on your estimated usage of Azure services. You can choose from different prepayment levels, such as low, medium, high, or custom.

The prepayment amount is then decremented on a monthly basis as you use Azure services. You can monitor your usage and balance through the EA portal or the Azure portal. You can also adjust your prepayment level at any time during your EA term if your usage changes.

If you use more than your prepayment amount in a given month, you will be charged for the excess usage at the standard pay-as-you-go rates. If you use less than your prepayment amount in a given month, the unused balance will roll over to the next month until the end of your EA term.

Screenshot that shows Microsoft Azure Prepayment option in Usage summary.

At the end of your EA term, you can renew your prepayment for another term or switch to another payment model. If you have any unused balance left at the end of your EA term, it will expire and cannot be refunded or transferred.

 

What Are the Benefits of Microsoft Azure Prepayment?

Microsoft Azure prepayment offers several benefits for EA customers, such as:

  • Cost Savings: By using Microsoft Azure prepayment, you can save money and get better ROI by taking advantage of discounted pricing. The more prepayment you purchase, the more discount you get. You can also avoid unexpected costs by paying for services upfront.
  • Budget Control: Microsoft Azure prepayment allows you to control your costs by paying for services upfront, rather than paying after use. This payment model helps you to manage your budgets more effectively and plan ahead for your cloud spending.
  • Usage Flexibility: Microsoft Azure prepayment gives you the flexibility to use Azure services as per your requirements, without worrying about sudden increases in costs. You can scale up or down your usage depending on your business needs and only pay for what you use.
  • Simplified Billing: Microsoft Azure prepayment simplifies billing by consolidating all charges into a single invoice, making it easier to manage and reconcile expenses. You can also access detailed reports on your usage and balance through the EA portal or the Azure portal.
  • Service Access: By using Microsoft Azure prepayment, you can access all the available Azure services without any restrictions or limitations. You can also leverage new features and innovations as they are released.

 

Conclusion

Microsoft Azure Prepayment is a valuable payment model that provides organizations with with Microsoft Enterprise Agreements with the flexibility, control, and predictability they need to manage their Azure services effectively. The renaming of Microsoft Azure Monetary Commitment to Microsoft Azure prepayment is a minor change that doesn’t affect the service’s features, but it helps to provide a clearer understanding of the payment model.

If you have any questions on Microsoft licensing and how your organization can navigate the Microsoft Azure landscape, just give us a call or write an email.

 

Where can I find more information about Microsoft Azure prepayment?

For further information on the name change to Microsoft Azure prepayment, please find the Microsoft Azure prepayment section starting on page 53 of the July 2020 Product Terms, and download the document itself here: https://www.microsoft.com/licensing/terms/productoffering. If you need any help with Microsoft licensing, just contact SCHNEIDER IT MANAGEMENT for free expert Microsoft licensing consultancy for organizations.

For software licensing information on Microsoft products, please visit: https://www.schneider.im/software/microsoft/.

 

FAQs

Why was Microsoft Azure Monetary Commitment renamed to Microsoft Azure prepayment?

The rebranding has been done to ensure consistency across the platform, as well as with other Microsoft products and services.

What are the benefits of using Microsoft Azure prepayment?

There are several benefits of using Microsoft Azure prepayment, including cost control, predictable usage, flexibility, simplified billing, and better ROI.

How does Azure prepayment differ from the pay-as-you-go model?

Azure prepayment requires an upfront payment for a specific amount of cloud services, while pay-as-you-go allows customers to pay only for the cloud services they use on a monthly basis.

Can I change my Azure prepayment commitment during the term of the agreement?

No, Azure prepayment commitments cannot be changed during the term of the agreement. However, customers can renew or increase their commitment at the end of the agreement term.

What happens if I exceed my Azure prepayment commitment?

If you exceed your Azure prepayment commitment, you will be billed for the additional usage at the standard pay-as-you-go rates.

How do I monitor my Azure prepayment usage and costs?

Customers can monitor their Azure prepayment usage and costs through the Azure portal or through Azure Cost Management and Billing. These tools provide real-time usage and cost data, as well as insights into how to optimize cloud spending.

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