Gartner Research

Microsoft Azure Services: What You Must Know and Do Before Committing to Azure

Published: 16 October 2017

ID: G00332403

Analyst(s): Marie Sienkowski, Dolores Ianni

Summary

Microsoft has evolved its discounting model for several Azure programs over the last year. Sourcing and vendor management leaders purchasing Azure services will need to leverage a mix of old and new program offerings to optimize cost and minimize risk.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Model Projected Azure Renewal Increases by Comparing Current Versus Public List Prices
    • The Elimination of Volume Licensing Discounts Has Increased Rates for Some Customers
    • The Reduction in Some Prices Did Not Always Make Up for the Loss of VLA Discounts
    • And Now, Your Toughest Challenge: Projecting Annual Spend Going Forward
  • Reduce Your Azure Spend by Choosing a Mix of Payment Models, Programs and Entitlements (Such as HUB or Reserved Instances)
    • Monetary Commitments Lock Pricing for Term of the Agreement but Create Risk of Forfeiting Unused Payments
    • Azure Enterprise Dev/Test Subscriptions for Visual Studio Users
    • The New Azure Reserved Virtual Machine Instances
    • Azure Hybrid Use Benefit for Windows Server Under Software Assurance
    • License Mobility Rights through Software Assurance Can Reduce Overall Spend
  • Leverage the CSP Program for Azure Projects That Require Migration Support, but Don't Expect to Negotiate or Lock in Pricing
    • Changes to Microsoft Account Team Compensation to a Pure Consumption Model May Drive New, More Cost-Effective Opportunities to Purchase From Partners

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