A commitment sized on optimism
Shortfalls are paid either way. A commitment built on growth that does not arrive gets closed out with spend nobody needed.
How Azure prices an enterprise deal
Azure is priced on consumption, with published list rates for each service and region: compute by the hour, storage by the gigabyte-month, data transfer by the gigabyte. Large customers pay less through commitments, and the commitments are where the negotiation happens.
There are three layers. A Microsoft Azure Consumption Commitment, or MACC, commits the business to a total spend across the term in exchange for a negotiated discount. Reservations commit to specific instance families and regions for one or three years, for up to 72% off pay-as-you-go. Savings plans commit to a fixed hourly spend across eligible compute for up to 65%, or up to 35% on eligible databases. Where both apply to the same usage, the reservation is applied first.
Marketplace purchases can count toward the commitment. An offer badged Azure benefit eligible, bought through the Azure portal on a subscription tied to your agreement, contributes 100% of its pretax value. Bought any other way, it does not count at all.
Azure Hybrid Benefit lets Windows Server and SQL Server licenses with active Software Assurance run on Azure at the base compute rate. Microsoft’s fiscal year ends June 30, and April to June is when it closes its year.
What has changed recently
- 2026
EA renewals redirected to MCA-E
Microsoft begins moving customers with Azure consumption commitments from the Enterprise Agreement to MCA-E. MCA-E has no equivalent of the EA’s price protection, so the commitment carries more of the negotiation.
- 2026
AI capacity becomes its own commitment
Provisioned throughput for Azure OpenAI can be reserved, at up to 70% below the hourly rate, so AI capacity now carries a commitment decision of its own.
- Jan 2027
Local currency prices reset once a year
Microsoft moves to adjusting local currency pricing for its commercial cloud annually, each January. Azure priced in US dollars is unaffected.
What moves an Azure renewal
An Azure renewal is priced across a commitment and several discount instruments, and each one moves the number differently.
The commitmentA total Azure spend agreed across the term
ReservationsSpecific families and regions, up to 72% off
Savings plansA fixed hourly spend, up to 65% off compute
Hybrid BenefitWindows and SQL licenses applied to Azure rates
Each of these changes what the business actually pays for the same workloads. Knowing which one is moving the number is the starting point.
Where an Azure renewal gets expensive
Marketplace spend that doesn’t count
Only offers badged Azure benefit eligible, bought through the Azure portal on a linked subscription, reduce the commitment. Everything else sits on top of it.
Price protection that doesn’t carry across
An Enterprise Agreement holds prices on committed products for the term. MCA-E does not work that way, so what used to be locked is now part of the commitment conversation.
Support priced off everything else
Unified Support is calculated from qualifying Microsoft spend. As Azure consumption grows, the support bill grows with it, without anyone renegotiating.
Deal IQ helped us negotiate an impressive price; they had knowledge we would never have access to internally, like Microsoft’s scorecards.
A COMMITMENT, NOT A RATE CARD
Microsoft publishes the reservation ceilings. It doesn’t publish your commitment discount.
Reservations and savings plans have published maximums. What Microsoft agrees on a consumption commitment is negotiated privately, deal by deal, and the first number reflects what the account team expects you to accept.
What well-prepared buyers do before an Azure renewal
Start 6 to 12 months out
A commitment negotiated close to the renewal date runs on Microsoft’s timeline.
Model the commitment against real forecasts
Build it from actual consumption and funded projects, not from a growth plan.
Check reservation and savings plan coverage
Know what is already committed, at what rate, and when it expires.
Check Hybrid Benefit eligibility
Confirm Software Assurance is current and that licenses map to what is running.
Know where you fall in Microsoft’s year
Microsoft’s fiscal year ends June 30. April to June is when it closes its year.
DEAL IQ ON AZURE
We know how Microsoft decides.
Azure pricing is published, but the commitment discount is not. Our network of 350+ former vendor sales, pricing and deal desk leaders includes people who sold Microsoft and know how those numbers are put together. We pair that with our own Microsoft pricing data and a 32-factor assessment on every deal, then negotiate directly with Microsoft or behind the scenes with your team.
Savings come from the price. Same products, same quantities, same scope.
DEAL IQ EXPERIENCE WITH AZURE
75+Azure negotiations
$900M+in Azure contract value negotiated
350+former vendor sales, pricing and deal desk leaders in our expert network, including people who sold Microsoft Azure
ALSO ON MICROSOFT
Licensing, Microsoft 365 and the EA
Microsoft 365, the Enterprise Agreement, Copilot and Unified Support are priced on their own rules. The Microsoft hub covers how those move at renewal, alongside license optimization.
Explore software licensing optimizationFrequently asked questions
What is a MACC?
A Microsoft Azure Consumption Commitment: a contractual commitment to spend an agreed amount on Azure across the term, in exchange for a negotiated discount. It sits inside an Enterprise Agreement or an MCA-E rather than being a separate contract.
What is the difference between reservations and savings plans?
Reservations commit to specific instance families and regions for one or three years, with published savings of up to 72%. Savings plans commit to a fixed hourly spend that follows eligible compute usage across families and regions, with published savings of up to 65%, or up to 35% on eligible databases. Where both apply to the same usage, the reservation is applied first.
Do Marketplace purchases count toward our Azure commitment?
Only offers badged Azure benefit eligible and bought through the Azure portal on a subscription tied to your agreement. Those contribute 100% of the pretax purchase amount. Offers bought outside that path contribute nothing.
Does Azure OpenAI usage count toward the commitment?
Yes. Azure OpenAI and other Foundry services are Azure consumption. Provisioned throughput can also be reserved, at up to 70% below the hourly rate.
What happens if we do not use the full commitment?
The shortfall is still owed. That is why the size of the commitment, not the headline discount, is usually the most important number in the negotiation.
Is Azure pricing protected under MCA-E the way it was under an EA?
No. An Enterprise Agreement holds prices on committed products through the term. MCA-E does not carry the same protection, which puts more weight on the commitment and what is agreed alongside it.
What triggers a Hybrid Benefit compliance problem?
Software Assurance that has lapsed, licenses that cannot be mapped to the virtual machines running them, and workloads left running after the dual-use migration window closes.
When does Microsoft’s fiscal year end?
June 30. Its fourth quarter runs from April through June.
Is Microsoft’s “best and final” offer really final?
Best and final is a sales position, not a floor. It reflects what the account team expects you to accept, not the lowest price Microsoft will approve.
Do we need to cut Azure usage to get a better price?
No. We negotiate the price of what you consume. Services, workloads and scope stay the same.
Has Deal IQ negotiated Azure agreements before?
Yes. More than 75 Azure negotiations covering $900M+ in Azure contract value, with a network that includes people who sold for Microsoft Azure.
How does Deal IQ charge for an Azure negotiation?
No savings, no fee. We agree the starting price with you before we negotiate, and our fee is a share of the improvement against it.