What is Azure Plan?
Microsoft introduced the new commerce experience for Azure CSP in November of 2019 called Azure Plan. It aligns all billing models in Microsoft channel and provides Azure utilities at pay-as-you-go rates. Additionally, Azure Plan provides Azure Cost Management to optimize spend. Microsoft is moving everyone off the traditional Azure offering in a phased approach. CSP providers will help you transition to this new offering.
Microsoft is encouraging partners to have value-added services to Azure to increase your returns. They built this model so that multiple provides could service the same customer for different parts of their business.
Does this change my billing model or margin?
Microsoft is removing all margin in lieu of what they are calling Partner Earned Credits (PECs). A partner is eligible for PECs if they are Admin on Behalf of (AOBO) in a customer’s tenant. If you are working with a distributor to provision Azure subscriptions, it is likely that the distributor will chose to provide you the equivalent of your previous margin with these PECs.
The billing period is shifting to the calendar month vs a previous model of the 28th to the 28th. If you are working with a distributor, the date in which you are billed should not change.
Do I have to perform any type of migration?
There is no migration of resources. Distributors should provide you with the ability to move to Azure Plan through some type of automated process. This is simply an API call to move the subscription to Azure Plan. There is no downtime or disruption in service.
What is the benefit of moving to Azure Plan?
The main benefit to MSPs with the move to Azure plan is getting visibility to the Azure Cost Management feature. This feature allows you to garner visibility into current spend and forecasting for the month. Additionally, it allows you to view advisor recommendations and provide visibility of the utilities to your customer.
Are there any limitations on moving customers from one CSP provider to another with Azure plan?
There are not. Change of channels can be performed across CSP providers(distributors) without any downtime. It is simply a transfer of ownership.
Is there a deadline to move to Azure Plan?
Microsoft has announced that they are removing all margin from the existing Azure offering in February of 2022. I would suggest getting all Azure subscriptions moved to Azure Plan at this time. All net new subscriptions of Azure you purchase should already be defaulted to Azure Plan. Click here for more information on timelines.