Darren Roberts, Vuzion Azure Commercial Lead, writes …
Microsoft has announced that – as from 4 September 2019 – customers can now opt to pay for Azure Reserved Instances monthly, while still taking advantage of the discount previously offered only on an upfront payment basis.
This is fantastic news, as the commitment to pay upfront at the time of purchase was a major blocker to many businesses moving to Azure.
The option to pay upfront for Azure Reserved Instance remains, and some customers will prefer to continue with this method. However, the majority of customers – which I believe will be up to 80% – will choose the monthly payment option, as it moves the expense from CAPEX to OPEX, and removes the burden of the initial outlay.
The one-year and three-year commitment options also remain, with their respective discounts of (as at September 2019) approximately 20% and 50%.
By introducing this payment flexibility, Microsoft has empowered partners to enable every customer to experience the cost benefits of the Azure Reserved Instance model - and the monthly billing model is available now with Vuzion.
To confirm, the details of the change are –
Prior to 4 September 2019, Azure reservations were available as follows:
- 1-year commitment – paid upfront at the time of purchase
- 3-year commitment – paid upfront at the time of purchase
As from 4 September 2019*, Azure reservations are available as follows:
- 1-year commitment – payment upfront at time of purchase, or monthly billing
- 3-year commitment – payment upfront at time of purchase, or monthly billing
By reserving Azure requirements in advance, customers and partners benefit greatly from the cost saving.
The new payment option is available for offer by all CSP partners transacting Azure reservations, and will make Azure even more attractive as the cloud platform of choice, and open the door to many more customers being able to experience the overall benefits of the platform.
If you’d like more information about the new Azure reservations payment option, or the Azure platform itself and the opportunities the platform delivers for businesses, you can reach me at firstname.lastname@example.org, or on 0333 009 5939.
*Available across all regions where Azure reservations are supported by mid-September 2019