Azure:

Advanced licensing
scenarios and
Hybrid Use
Benefits
Agenda

• Azure solutions

• Azure scenario: building a website

• Getting the most value from Azure

• Transacting Azure within EA

• Transacting Azure within CSP

• Resources
Solutions that can be built with Azure
Digital marketing scenario: create a new website

create personalized and timely user experiences.

optimize with data, not best guesses.

use existing skills and tools while decreasing time to market.

be prepared to handle outages and peak demands.

 Applicable Azure services for Contoso’s website

Find out more about these Azure services, and other applicable products, here.
 Architecture for the new Contoso.com website

Other sample architectures are available here.

Understanding the customer’s path to the cloud
Moving to the cloud with
on-premises software
Azure Hybrid Use Benefit (HUB):
• Azure is the only cloud platform where Contoso can
use their on-premises Windows Server licenses with
Software Assurance (SA) in the cloud.
License Mobility Through SA:
• Server licenses* with SA can be moved to the cloud
(other than Windows Server).
Unmatched hybrid capabilities
• Contoso can move to the cloud at their own pace
using the true hybrid capabilities of Azure.
Azure solutions Azure vs. AWS
Born in the cloud without
on-premises software
Pricing matching
• Microsoft’s commitment to matching Amazon Web
Services (AWS) on pricing for Azure like products.
Purchase through the program that best fits their needs
• CSP for partner value-added services.
• EA/EES for all Azure Plans and Enterprise portal.
• MOSP for simplicity of buying and deploying fast.
The Azure Hybrid Use Benefit explained
Contoso has Windows Server Datacenter
with Software Assurance on-premises, and
they want to leverage the Azure Hybrid Use Annual savings of
~46% or $8,600
Benefit to save money as they build their
website. Annual cost of two
D4 v2 Windows
Benefits Server virtual
machines on Azure
Annual WS SA cost ~$200

Contoso can use their Windows Server licenses ~$18,600 Annual cost of two
in Azure datacenters when covered by Software D4 v2 base (Linux)
Assurance. compute virtual
In Azure, they pay only for the base virtual machines on Azure
machine service utilization. ~$9,800
It significantly reduces the cost compared to
running Windows Server in other public clouds.
Note: Pricing for D4 v2 Virtual Machine equals eight cores, 28GB RAM,
400GB Disk for West US region running 8,760 hours in a year, as of
March 2017. SA cost are for EA Level D pricing (USD); Pricing subject to
change.
Why choose the Azure Hybrid Use Benefit?
What are the benefits to the customer?

 Allows them to leverage their on–premises investments

 Azure benefit for Window Server SA customers

 Incremental added benefit to their SA investments
 Cost-effective Windows Server deployments on Azure

Why should partners care about Azure Hybrid Use Benefit?

 Only in Azure: not available in other public clouds

 Helps secure Windows Server SA renewals

 Upsell the value of Datacenter Edition
 TCO calculator helps understand the savings
Benefits
The Total Cost of Ownership calculator (TCO)
provides the opportunity to go through
Contoso’s on-premises environment, and then
evaluate what that scenario would look like
within Azure.
At the end, you and you’re customer will be able
to compare the costs of staying on-premises and
moving to Azure.

Access the TCO calculator at http://tco.microsoft.com/

Use existing on-premises license for a better price

Contoso has:
• Windows Server Datacenter with SA
• SQL Server Enterprise with SA Savings –
67% or $24,700
Contoso can use the following: Annual cost of two D4
• Azure HUB with their Windows Server SQL VMs on Azure
license - $36,700
• Licenses Mobility Through SA with their
SQL Server license Annual SQL SA cost - 1,650
Annual WS SA cost - 550

Note: Pricing for D4 Virtual Machine equals eight cores, 28GB RAM, Annual cost of base (Linux)
400GB Disk for West US region running 8760 hours, pricing as of
March 2017. SA costs are for EA Level D pricing (USD).
compute VM on Azure
Pricing is subject to change – $9,800
Window Server licensing grants in Azure HUB

License with SA VMs and cores granted How they can be used

Up to two VMs and Run virtual machines both

up to 16 cores on-premises and in Azure

Up to two VMs and Run virtual machines either

up to 16 cores on-premises or in Azure
Azure Hybrid Use Benefit VM configurations

Available for customers with one Windows Server license with SA

(either a two-processor license or a 16-core license)

VM #1 = D14 (16 vCore) VM #1 VM #1 = D2 (2 vCore)

= D13 (8 vCore)
VM #2 VM #2 = D3 (4 vCore)
= D13 (8 vCore)

Total: 1 VM, 16 cores (max) Total: 2 VMs (max), 16 cores (max) Total: 2 VMs (max), 6 cores
Estimate your solution cost with the Azure Calculator

The Azure calculator can be

found at Azure.com
1. Select Azure services that your
customer’s will need
• Most Azure services are
available, but some are not
2. Configure the Azure products
(e.g. location, type)
3. Input projected usage
(e.g. hours, instances)

View the Azure Pricing Calculator for indirect and CSP and direct and MOSP (azure.com).
Estimate your solution cost with the Azure Calculator

In terms of Contoso’s new website, the

partner or customer would select these
Azure products
Estimate your solution cost with the Azure Calculator

The applicable SKU

Exploring the value of using Azure Plans

Traffic Manager App Services Compute

Contoso is launching a website through Azure. Cost

The line graphs (purple, green, and blue) shows how

Azure Service’s costs can vary over the year.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Development Testing Launch

Exploring the value of using Azure Plans

Compute for a single application Compute pre- Compute pre-purchase

purchase plan cost plan usage allotment
Contoso is launching a website through Azure. Cost

Contoso identified an application that had a

reasonably predictable cost range (red line)
throughout the year.

Azure Plans can help provide cost stability and

savings for workloads that have a predictable range

For workloads that are running within a certain

range every month, Azure Plans such as Compute Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

pre-purchase can be used for savings and

predictability Development Testing Launch
Understanding your customer’s needs
Steps Details

What is the customer’s

1 current situation?
• Work with the customer to understand what they want to do
today and what their goals are for their future.

• Azure offers best-in-class solutions for hybrid environments by

offering customers the ability to use their existing on-premises
License Mobility software investments within Azure.

2 Through SA and Azure • License Mobility Through SA provides the ability to move on-
premises server software licenses to the cloud.
HUB
• An exclusive benefit of Azure is being able to use the Hybrid Use
Benefit of any on-premises license of Window Server with SA.

• Azure calculator is a tool for estimating potential usage.

Azure calculator/ TCO
3 calculator • Understanding usage estimating helps the customer understand
cost savings and other price advantages of going to the cloud.
 What is best for your customer?

Steps Details

Would your customer • Some Azure products can also be consumed through Azure

4 benefit from Azure

Plans, which can provide savings and billing predictability.
• These can be great for customers who know what rate they will
Plans? be using for certain Azure products.

• Partner solutions are best for customers wanting partner value-

added services along with their online services. Examples of
some partner value-added services are solution deployment,
Does your customer
5
solution management, and usage tracking.
want a partner solution
• CSP allows partners to sell online services bundled with their
or just Azure? solution; partners manage the full customer relationship apart
from Microsoft, including billing, set-up, management, and
support.

How does your

6 customer want to be
• Does the customer want to pay in arrears monthly or quarterly,
or do they want to pre-pay using a Monetary Commitment?
billed?
2
1
Azure availability by program

  SCE*


   ***

 ***
***
      ***
**
How to choose the right program

Azure-only?

CSP
for partner-managed
or
MOSP
for self-serve

Azure as part of an organization-wide commitment?

Enterprise Agreement
Above 500
or
CSP or Open Value/Open Value
MOSP
+ Subscription

Azure plus transactional software?

MPSA
above 250
CSP or
MOSP
+ or

Open
Enrollment overview
Server and Cloud Enrollment Enterprise Enrollment
(SCE)
Azure only • Monetary Commitment
• Monetary Commitment
• Minimum of 1 unit must be ordered
• Minimum of 10 units must be ordered (equal to $100 USD per month)
(equal to $1,000 USD per month)

With commitment to another component

• Monetary Commitment and Pay-As-You-
Go are available

• No minimum for Pay-As-You-Go

• Monetary Commitment requires a

minimum of 1 unit
(equal to $100 USD per month)
How to buy details
Monetary Commitment
Ordering:
• One Unit of Monetary Commitment (SKU 6QK-
00001) is equal to $100 USD per month
• The monthly Monetary Commitment (MC) SKU
will automatically be multiplied by the
remaining months until anniversary
• Order at anytime: expires at anniversary
Scenario:
A customer wants to commit $11,000 USD and
they have 10 months until their anniversary.
Server and Cloud Enrollment
Pay-As-You-Go
• Customer must commit to one of the three
components:
• Core Infrastructure Suite
• SQL Platform
• Visual Studio/MSDN Platform
• Azure is automatically provisioned when the
customer starts a SCE

Solution:
The partner would order 11 x MC SKU

Known challenges:
Watch out for the ‘start date’
Ordering process within Direct and Indirect EA

LSP LSP customer

customer

LSP LSP Customer

customer

LSP LSP customer Customer partner

Submitting Azure orders in the EA
Scenario: Contoso plans to use $120,000 in Azure services
Depending on their enrollment model, there are two ordering options:
Azure Enterprise Portal: customer onboarding
Recommendation:

How to schedule:
http://aka.ms/AzureEntSupport
Adding uplifts to indirect EA

• Indirect customers will not be able to see

Azure prices until uplift has been applied
• Uplift can be anywhere between
-100% to +100%
• Applied at the customer level
• Monetary Commitments will be adjusted by the
uplift percentage
• Applied retroactively to the enrollment start

here
Reporting: Enrolling notifications

Enterprise Administrators
are automatically
enrolled to receive
weekly notifications of
their remaining Monetary
Commitment balance
and any unbilled usage.
Downloading ad-hoc usage reports
Within the Azure Enterprise Portal you can go to the reports section and then Download Usage tab; this is where
you can see details in a spreadsheet that provides the lowest level details down to individual virtual machines
and storage accounts.

here
What happens if the customer goes into overage?

Does the customer want to go into quarterly/annual billing?

Direct or Indirect customer?

Customer increases their
Monetary Commitment going
forward.

Accrued overage is paid Overage is paid quarterly

at the anniversary
Partner submits the
6QK-00001 SKU

Quarterly billing starts when

usage goes over 150% of MC
Scenario: adding Monetary Commitment
Does the customer want to increase their Monetary Commitment?

6QK-00001

Will remain unless

modified

Desired additional: $110,000 Monetary Commitment:

Remaining months: 6 Original per month: $10,000
$110,000 / 6 = 18,400 per month Added per month: $18,400
(round to nearest 100) Total per month: $28,400
$18,400 / 100 = 184 units ordered New annual MC: $340,800
Overage notification for Indirect

% of Monetary Contoso’s notifications

Commitment ($120,000 MC)
50% $60,000
75% $90,000
90% $108,000
100% $120,000
Overage notification for Direct

% of Monetary Contoso’s notifications

Commitment ($120,000 MC)
75% $90,000
112.5% $135,000
135% $162,000
150% $180,000
Managed services opportunities for Contoso

Cloud Readiness Systems Integration Proactive Backups & Hybrid Environment

Assessment Anti-Virus Monitoring Support
Datacenter Migration
Solution Analysis, Scope, Update & Patch Security Management &
& Design Backup & Storage Management Identity Protection
Deployment

Data Architecture Design Reactive Help Desk Virtual Machine

Disaster Recovery Support Management & Upgrading
Deployment
User Experience
Consulting Performance and App Network Monitoring
Proof of Concept Troubleshooting

App re-platform Cloud Usage Forecasting

Health Checks

Database Infrastructure Billing Management

Development Capacity Planning
3rd Party Application
Deployment Services Management
 CSP partner and customer relationship

Partner Partner Partner customer

customer customer customer’s

Partner Partner Partner customer Customer partner

customer

To learn more about adding customer’s to a CSP Azure subscription, go to this TechNet post.
Adding a customer within Partner Center
Adding a customer within Partner Center, cont.
Adding a customer within Partner Center, cont.
Adding a customer to the Azure portal

We recommend partners think carefully

about their operational, contractual,
support, and business models before
granting customers access to the
subscriptions.
 Adding a customer to the Azure portal, cont.

Go here for role base access control documentation.

Known issues with migrating to CSP
Issues: Manual audit is required
When migrating to CSP from other programs, a manual audit of the Azure Services in use
and their deployment method is required, which may result in delays and downtime.

Solution: In development
Microsoft is working on a programmatic solution to ease the migration to CSP.

Recommendation: Wait for further communication

Customers should wait on migrations until a solution is created. Look for further
communications in the coming months.
Partner resources

Customer site Readiness catalog

Azure Services pricing models
Calculator
Channel calculator (indirect and CSP)
Enterprise Portal onboarding guide (Indirect)
Enterprise Portal onboarding guide (Direct)
Operations Customer Lifecycle FAQ
Video on ordering and usage within EA
Channel 9 Azure Enterprise Portal

Overview video
Overview presentation
Azure in a Box
Partner FAQ from customers
Billing integration plan for Azure