05 Mrz Azure Enterprise Agreement Vs Pay as You Go
Enterprise Agreement (EA)You still purchase Azure services directly from Microsoft, but this is a design for a large organization that can commit to using it. The minimum commitment is 3 years, during which you must specify in advance the amount of money you attach. You can combine Azure services and the license portion under the same contract, simplifying internal provisioning procedures. The customer can create a new Azure subscription directly. The most important advantage of this is the amount of discount you get – this is quite important. For this nice discount, you have been addicted for at least 3 years, and you can not reduce the cost of consumption for this period. You can increase the commitment at any time, but you can`t reduce it, and the extras you need may not come with the expected discount. Benefits Although you can create an Enterprise Agreement with Microsoft specifically for Azure, most companies that use this option already have an EA to use their software resources such as Windows, Office, Sharepoint, System Center, etc. If you have an EA for other products, you can easily add Azure to that existing agreement by making an upfront payment commitment.
You can then use eligible Azure cloud services throughout the year to meet this commitment. And you can pay for additional use beyond commitment at the same prices. As with any Enterprise License Agreement (ELA), including AWS EDP, you agree to meet a contract duration and volume to receive additional discounts. Microsoft recommends that EA only be used by large enterprises: EAs are typically used by large enterprises that can handle at least 500 user licenses and require a fixed price for software and subscription licenses for 3 years. However, large companies continue to switch to CSP for more flexibility and savings. For businesses (over 1,000 users) where cost reduction is a priority, this is a great option. However, if you`re looking for more personalized support or more flexibility, a CSP subscription is a better choice. It turns out that the minimum engagement of Azure Enterprise is very low. You must enter into an initial monetary commitment for each of the three years of the Agreement with a minimum order value of a “monetary commitment SKU” of $100 per month ($1,200/year). This low level of engagement makes sense: once a company is on a cloud platform, it`s sticky – Land and Expand is the name of the game for Azure, AWS, and Google.
They expect the infrastructure to grow far beyond the minimum and just have to put one foot in the door. And of course, the starting point in the cloud should be much cheaper and more flexible than in the Prem infrastructure. In this template, you sign up with Azure for a 3-year contract, pay in advance, and have the same terms for the entire term. This will keep your costs constant, but may limit your ability to respond to changes and needs. In addition, Microsoft priority support is only available at an additional cost. There are some Azure-specific EA benefits in addition to the price to entice users to get out of pay-as-you-go. You can create and manage multiple Azure subscriptions with a single EA. You can also accumulate and manage all your subscriptions, giving you an enterprise view of how many minutes of resources you use per subscription.
In addition, you can assign subscription engraving to accounting departments and cost centers, making it easier to manage budgets and view expenses at different stacking levels. As more and more large enterprises adopt the Azure cloud, especially those that traditionally use Microsoft tools, we are seeing a growing interest in Microsoft Azure enterprise contracts, commonly referred to as EAs. We thought it would be helpful to learn more about Microsoft EAs, how they work with Azure, and what they mean for the enterprise and the ISV. In addition to getting the best prices and discounts, what are the other additional benefits an EA could offer a business: You can contact a Microsoft partner or speak to a Microsoft representative to help you choose the right option for your organization. With a single agreement for the entire company, you can easily purchase all the services you need at once. This is especially useful if your usage is at a consistent level. The Microsoft Cloud Solution Provider program opens up a new world of flexibility in the purchase and management of software licenses. Instead of a 3-year commitment as required by Microsoft EA, Microsoft CSP is full month by month. This allows you to add or remove licenses as needed and only pay for what you actually use, which can save you significantly in the short and long run.
Most importantly, since CSPs are provided through Microsoft partners, you also get instant access to Microsoft Premier support (additional cost with Enterprise contracts) as well as a dedicated team that knows you and your company, so you never have to explain your problem from the beginning whenever you need help. You can also contact us to get started with a CSP agreement. You can take advantage of our direct support and free Cloud Optimizer service, where we review your usage each month and look for ways to reduce your costs. Contact us to find out more. . If you have any questions or need help, create a support case. *Savings are based on D4_v2 three-year IR in the US 2 West region and Software Assurance (Level A) costs for Windows Server Standard Edition (four 2-core licenses). Actual savings may vary depending on region, instance type, usage, or custom Windows Server licensing costs.
Prices from November 2017. You need to consider all the pros and cons. It`s important to know that using a CSP can have great advantages, especially because you don`t have to manage subscriptions yourself compared to EA, and you also get more personalized support from a team of consultants who know your business and your needs. Well, for providers like ParkMyCloud who need Azure pricing data to run our service, how are we affected by EA? That`s no downside: the good news is that Microsoft provides EA pricing through dedicated APIs and/or the Azure pricing sheet. We may associate this information with a customer using their offer ID, which defines their EA subscription and corresponding prices (discounts). In this template, you purchase your resources directly from Microsoft through their website. You only pay for exactly what you use, based on the pay-as-you-go rates listed. To purchase Azure through CSP, contact a vendor such as Predica, which can configure access to your cloud resources. They take care of your billing, subscription, and support requests.
Because EE contracts offer much less flexibility, more and more companies are switching to CSP when their EA contracts need to be renewed. If you want to manage or finance your company`s IT operations and explore the intricacies of acquiring mana. For example, if you take advantage of Reserved Instances, you can save up to 40% of your Azure cloud bill. As a customer with a single subscription with usage and usage levels, you can switch your Azure subscription to another plan in the Account Center. For example, you can use this feature to take advantage of monthly credits for Visual Studio subscribers. This simple question is difficult in most cases. For many companies, it`s not clear how they buy Azure services, what kind of provider they use. In addition, they do not know what the difference is between the different ways of buying resources and which one is best suited to their needs.
Let`s take a look at the 4 different ways to purchase Azure services and try to identify the pros and cons of each option. If your business is small (less than 100 users) or you`re trying a new service on a small scale, this is a good choice. All you need is a credit card and a few minutes to set up your account. Click Switch to another plan. The option is only available if you have an individual subscription with pay-as-you-go plans and have completed your first billing period. Direct CSPA Direct CSP purchases Azure services directly from Microsoft. The profit margin is not divided into two different levels as for indirect CSPs. They get very nice discounts from Microsoft that can also be seen by their customers. By working directly with customers, they know the customer`s business and can offer better support and services, while offering reasonable prices.
From a size perspective, a direct CSP is a larger organization than an indirect CSP that provides better technical support. The support is more customer-centric compared to the one you can get directly from Microsoft.As for indirect CSP, you can increase or decrease your resources according to your needs. However, if the customer needs a new Azure subscription, they must contact the direct CSP to respond to the request. Benefits If you`re looking for a scalable solution that can help you evolve as your needs change, working with a CSP partner is your best bet. The CSP program allows you to instantly add or remove users and products and pay only for what you use. Effective February 1, 2020, the existing Microsoft Cloud agreement will be removed from the CSP program. From that point on, all other offerings, including existing Microsoft 365, Dynamics 365, and Azure, require confirmation (attestation) from the partner of the customer`s acceptance of the new Microsoft Customer Agreement. CSP partners cannot place a new order for the customer without a Microsoft Customer Agreement certificate. For more information, see Confirm Customer Acceptance of the Microsoft Customer Agreement.
Save up to 72% compared to pay-as-you-go pricing with one-year or three-year terms on Linux or Windows virtual machines. One of the biggest challenges a business faces when migrating to the cloud is uncertainty. .