How a MACC works
A Microsoft Azure Consumption Commitment (MACC) is a contractual commitment to spend a set amount on Azure over a defined term. It sits on an Enterprise Agreement or a Microsoft Customer Agreement, and eligible Azure spend draws it down over time. Direct EA and MCA customers can track the start and end dates, the remaining balance and the status in the Azure portal.
Some MACCs include milestones, which are interim spend targets with their own due dates. Not all do.
What counts, and what does not
Eligible Azure consumption counts. So do eligible purchases on Microsoft Marketplace, marked Azure benefit eligible, when they are bought through the Azure portal on a subscription tied to the agreement. The full pretax amount of an eligible offer contributes.
Azure credits from Microsoft do not count, and neither does consumption covered by Azure prepayment. Marketplace purchases made outside the agreement, such as by credit card, generally do not count either. Knowing these rules matters when you size the commitment, because spend that looks like Azure may not draw it down.
If you fall short
If a milestone or the full commitment is not met by its end date, Microsoft charges the shortfall as an Azure prepayment credit for the remaining balance. Consumption covered by that credit does not count toward the MACC. Microsoft emails billing admins 90, 60 and 30 days before the end date if the commitment is not on track.
In practice, a MACC sized above real demand turns into a bill for spend that never happened. That is the main risk to manage.
What this means for the deal
The discount attached to a MACC gets the attention, but the size of the commitment and the shortfall terms decide whether the deal was a good one. Those terms are negotiable, and they are worth settling before signature rather than at the end of the term.
Where Deal IQ comes in
This page covers what has changed and where the cost sits. Turning that into a better price on your contract is the negotiation itself. Deal IQ has run 270+ Microsoft negotiations covering $2.4B+ in contract value, with a network of 350+ former vendor sales, pricing and deal desk leaders that includes people who sold Microsoft. We negotiate directly with Microsoft or behind the scenes with your team, and our fee comes from the savings.
Frequently asked questions
What is an Azure MACC?
A Microsoft Azure Consumption Commitment is a contractual promise to spend a set amount on Azure over a defined term, in exchange for better commercial terms.
What happens if we do not meet our MACC?
Microsoft charges the shortfall as an Azure prepayment credit for the remaining balance at the end date. Consumption covered by that credit does not count toward the commitment.
Do Azure Marketplace purchases count toward a MACC?
Eligible offers marked Azure benefit eligible count when bought through the Azure portal on a subscription tied to your agreement. Credit card purchases outside the agreement do not.
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