Azure Prepayment: Annually Prepaid

There are two types of Azure Prepayment, and the first one we’ll look at, the Annually Prepaid option, works in the same way as Monetary Commitment used to. Azure Prepayment is sold in multiples of a single SKU costing $100, and a customer must make an upfront payment for at least one of these SKUs per month. In the Annually Prepaid option therefore, a customer places an Azure Prepayment order of at least $1,200 at the start of the year.

As the Azure consumption services are used this amount is decremented. Of course, it’s extremely unlikely that a customer will have precisely estimated what they will spend on the Azure consumption services and their Azure Prepayment may be too large or too small. If it’s too small, then when the Azure Prepayment funds are exhausted the customer is simply invoiced monthly for the overspend which is known as overage. If, however, there are funds remaining at the end of the year, this money does not roll over to the following year – with the Annually Prepaid option a customer makes a payment at the start of each year of the Enterprise Enrollment and the funds expire at the anniversary.