TABLE OF CONTENTS
What is the NCE Azure Reserved Instances offer (subscription)?
Partners and Resellers will be able to invoice customers for their NCE Azure Reserved Instances purchases (ordered via self-service or through Business Ops). This is a standalone offer and is separate from the NCE Azure pay-as-you-go offer. Some Key highlights include:
- Enable Azure Reserved Instance (RI) self service option for customers to purchase reserved instances via their Azure portal from the Microsoft reservation catalog.
- This subscription will invoice RI purchased during monthly calendar billing cycle.
- This plan is valid only for NCE Azure and not for Legacy CSP Azure subscriptions.
- Customers can purchase an RI within their Azure portal (if self service option enabled within market place) or via Business Operations requests.
- Cancellation of the NCE Azure Reserved Instance subscription does not cancel the RI SKUs purchased (RI SKU cancellation has to be done separately).
How does the NCE Azure RI provisioning work?
Provisioning will create a subscription in the Cloud Marketplace for NCE Azure RI, and that subscription will be utilized to invoice the customers for their subsequent Reserved Instances purchases. The actual Azure Reserved Instances SKU purchases are made in the customer's Azure portal. We do not display the Azure reserved instances catalog on the Cloud Marketplace.
Purchasing reserved instances can also be executed via manual processes through Business Operations (as is done currently in the RI traditional mode). Regardless of how the RI is purchased, the subscription in the Cloud Marketplace will detect the RI and invoice it as usage. The invoice will show all reserved instances purchased for the customer NCE Azure subscription done via either self service mode or traditional mode (in the associated Marketplace).
What are the prerequisites for NCE Azure RI subscription purchase?
The customer should have a valid NCE "Azure plan" and Azure subscription. The customer should have signed the Microsoft Cloud Agreement (MCA) and accept terms. Only one RI subscription per customer (MS customer/domain) is allowed.
Can I purchase Reserved Instances for Legacy CSP Azure?
No. The NCE Azure RI subscription is only valid for NCE Azure subscriptions. The customers who are on Legacy CSP Azure subscriptions would need to transition to NCE Azure in order to take advantage of this NCE Azure RI offer self-service purchase mode. Otherwise, customers would need to purchase RIs for Azure CSP legacy through the existing Traditional Process (via business ops request).
What are NCE Azure Reserved Instances purchase plans?
Customers can purchase NCE Azure reserved instances SKUs in their Azure portal when self service is enabled. The reserved instances are typically for one year or three year terms. The customer can pay upfront for the total cost, or can choose the monthly installment plan. The Cloud Marketplace will invoice the RIs purchased in either modes. If purchased under installment plan, the invoice will show the monthly installment for the term of RI purchase. There are no additional finance charges for choosing installment plan vs upfront purchase
How does customer choose which Azure NCE RI SKU to purchase?
As the customer purchases reserved instance SKUs in their Azure portal, the RI purchase experience is between customer and Microsoft. Microsoft provides recommendations based on the workload that customer has. But it is the customer responsibility to make sure that they are purchasing the correct VM family and region so that reserved instance can be properly assigned. The assignment of purchased reserved instances to the resources in the workload is done automatically by Microsoft. Hence, it is essential for reseller and customer be educated that correct RI SKUs are chosen before going ahead with a costly RI purchase.
How does invoicing work for Azure NCE RIs?
A Customer can purchase NCE Azure Reserved Instances SKUs in either monthly installment mode or pay total amount upfront. Microsoft automatically assigns the reserved instances purchased to appropriate resources within the customer NCE Azure subscription (or across multiple customer subscriptions if purchased with "shared" option). The customer would receive invoice every month for the RIs purchased in the previous monthly billing period. If the monthly installment option is chosen, the invoice will reflect the monthly installment amount for the RIs (over the term). The pay-as-you-go consumption costs will reflect the assignment of the RI to particular resource (say, VM machine).
The customer can have multiple reserved instances and the invoice will reflect the costs for all. The invoice will also reflect any terminations and exchanges.
What currency exchange rates will be used for invoicing?
The billing currency exchange rate is based on the End Customer's location currency (as determined by Microsoft) converted to the currency configured in the CMP (as determined by Ingram Micro).
For EU/EFTA regions, Ingram's location currency will be used instead of end-customer's location currency.
The currency exchange rates are obtained via the API - 'The Microsoft published Currency Exchange rates for NCE/Modern Commerce'. Microsoft publishes Currency Exchange rates (to be used for consumption costs) at the start of every month. When the invoices are generated, we use these published currency exchange rates to convert to the currency used by the Marketplace.
NCE Azure pricing is based off USD, and converted to the following currencies: AUD, CAD, CHF, DKK, EUR, GBP, INR, JPY, KRW, NOK, NZD, RUB, SEK or TWD.
For end customers located outside of these currency regions, Microsoft determines a different local currency than the one used by that country. In many cases this is either USD or EUR depending on the location.
Microsoft provides currency exchange rates for approximately 160 global currencies. NCE Azure on Ingram Cloud Marketplace offers the following capabilities:
- The ability to manually override the currency exchange rate published by Microsoft.
- The ability to define a manual currency exchange rate for any currency not included in the list of 160.
How does exchanges and cancellation work for NCE Azure RI subscriptions?
The cancellation of NCE Azure RI subscription from the Cloud Marketplace does not terminate any actual NCE Azure RI SKUs. The cancellation of RI the subscription in Cloud Marketplace will disable the customers capability to purchase RI in self service mode. All exchanges and cancellations of the underlying RI SKUs must be processed through the Azure portal or Microsoft Partner Center by the customer, reseller or service provider staff. At the time of this writing, Microsoft allows exchanges and cancellations only to be done through the provider or Microsoft Partner.
Officially there is a termination fee of 12% for NCE Azure reservations, however at the time of this writing Microsoft is waiving the 12% termination fee. It is important to mention as Microsoft may opt to re-enable the termination fee without notice.
There is also an credit return limit of $50K USD per Customer, for a rolling period of the previous 12 months. This means if the customer tries to cancel and return more than $50K USD of RIs (either one large RI or multiple RIs) within the previous 12 months, their credit will be capped at $50K and anything above that amount will not be credited.