Azure Monetary Commitment is the upfront payment an Enterprise Agreement customer makes for use of the Azure consumption services, which is then decremented on a monthly basis as the services are used. This is now renamed to Azure prepayment but there are no other changes in terms of how it works. Find the Azure prepayment section starting on page 53 of the July 2020 Product Terms, and download the document itself here: http://bit.ly/MSproductterms.
Tag Archives: Azure Monetary Commitment
Azure Marketplace Invoicing
Third-party services purchased through the Azure Marketplace are typically invoiced separately in an Enterprise Agreement, outside of Monetary Commitment. From 1 March, 2018 there were some Linux Support options and Linux virtual machines that were changed to consume Monetary Commitment.
Find the announcement and list of relevant services here: http://bit.ly/2Nn74Ed.
Azure Monetary Commitment Overage Payments
Microsoft make changes to when customers are invoiced for overage on their Azure Monetary Commitment. Historically, this has been quarterly or annually, dependent on agreement type, which was changed to quarterly for all customer and agreement types in December 2017. Now all overage will be charged at the end of each month.
See page 50 of the May 2018 Product Terms for the official wording.
Azure Monetary Commitment Changes
There are two changes to the way Azure Monetary Commitment works in an Enterprise Agreement from December 2017.
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: $3,600 under the Enterprise Enrolment and $36,000 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.
If you want the official wording on the new rules then it’s all on pages 50 and 51 of the December 2017 Product Terms document.