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On this page
  • Overview:
  • 1. Pay-As-You-Go (PAYG)
  • 2. Azure Reserved Instances
  • 3. Azure Hybrid Benefit
  • 4. Enterprise Agreement (EA)
  • 5. Microsoft Customer Agreement
  • 6. Cloud Solution Provider (CSP)
  • 7. Dev/Test Pricing
  • 8. Free Account
  • 9. Azure Active Directory Premium P1 and P2
  • 10. Microsoft Entra ID Governance
  • Azure Entra ID Licenses:
  • Azure Licensing Offers:
  1. Azure Fundamentals
  2. Azure Fundamentals Overview

Azure Licensing Overview

Last updated 3 months ago

Overview:

Azure offers flexible pricing models to accommodate various business needs. This section goes over each of these in more detail.

1. Pay-As-You-Go (PAYG)

Description:

  • Flexible and Scalable: Charges are based on actual usage, with no upfront commitments.

  • Monthly Billing: Users are billed monthly for the services consumed.

Benefits:

  • Ideal for dynamic and unpredictable workloads.

  • No long-term commitments, making it easy to scale resources up or down as needed.

  • Simple to get started without financial risk.

2. Azure Reserved Instances

Description:

  • Cost Savings: Purchase reserved instances for one or three years in advance, receiving significant discounts compared to PAYG pricing.

  • Predictable Workloads: Best suited for applications with steady-state or predictable usage patterns.

Benefits:

  • Up to 72% savings over PAYG prices.

  • Budget predictability with fixed payments over the reserved term.

  • Flexibility to cancel or modify reservations if business needs change.

3. Azure Hybrid Benefit

Description:

  • Leverage Existing Licenses: Allows the use of existing on-premises Windows Server and SQL Server licenses with Software Assurance or subscription-based licenses in Azure.

  • Cost Efficiency: Reduces costs by applying existing license investments to Azure workloads.

Benefits:

  • Significant cost savings by reusing existing licenses.

  • Lower total cost of ownership for Windows Server and SQL Server in the cloud.

  • Enhanced value from existing on-premises investments.

4. Enterprise Agreement (EA)

Description:

  • Volume Licensing: Tailored for large organizations, providing customized pricing and terms.

  • Comprehensive Licensing: Covers a wide range of Microsoft products and services, including Azure.

Benefits:

  • Volume discounts and flexible pricing.

  • Centralized management of licenses for large organizations.

  • Access to additional benefits such as dedicated support and training.

5. Microsoft Customer Agreement

Description:

  • Simplified Purchasing: Offers a streamlined purchasing process for Azure and other Microsoft services.

  • Direct Relationship: Establishes a direct relationship with Microsoft, simplifying contract management and billing.

Benefits:

  • Simplified terms and conditions.

  • Easy management of Azure services and costs.

  • Suitable for organizations of all sizes.

6. Cloud Solution Provider (CSP)

Description:

  • Partner-Driven: Enables organizations to purchase Azure services through a Microsoft Cloud Solution Provider partner.

  • Managed Services: CSP partners can provide additional managed services, support, and billing.

Benefits:

  • Personalized support and services from a CSP partner.

  • Flexible purchasing and billing options.

  • Access to a wide range of Microsoft and partner solutions.

7. Dev/Test Pricing

Description:

  • Development and Testing: Special pricing for development and testing environments, available through Visual Studio subscriptions.

  • Reduced Costs: Lower rates for non-production workloads to support development and testing activities.

Benefits:

  • Cost savings on development and testing environments.

  • Access to Azure services at a discounted rate.

  • Ideal for developers and testers using Visual Studio.

8. Free Account

Description:

  • Getting Started: Offers free access to a limited set of Azure services for a specified period, typically 12 months, with some services always free.

  • Trial and Evaluation: Ideal for individuals and organizations new to Azure to try out services without financial commitment.

Benefits:

  • Free access to a range of Azure services.

  • Ideal for learning, development, and initial testing.

  • Includes free credits to explore additional Azure services.

9. Azure Active Directory Premium P1 and P2

Azure AD Premium P1

Description:

  • Advanced identity management for enterprises, including conditional access and multi-factor authentication (MFA).

Benefits:

  • Enhanced security with advanced access control policies.

  • Increased productivity with self-service capabilities.

  • Dynamic groups and self-service password reset.

Azure AD Premium P2

Description:

  • Includes all P1 features plus advanced identity protection and privileged identity management.

Benefits:

  • Comprehensive identity protection with real-time risk assessment and automated responses.

  • Enhanced control over privileged accounts, reducing the risk of insider threats and external attacks.

  • Better compliance and governance with regular access reviews and detailed audit logs.

10. Microsoft Entra ID Governance

Description:

  • Comprehensive identity governance solution within the Microsoft Entra suite, automating identity lifecycle management and access reviews.

Benefits:

  • Automates identity lifecycle management and access reviews.

  • Enhances security by managing and monitoring privileged access.

  • Ensures compliance with regulatory requirements.

Azure Entra ID Licenses:

Azure Licensing Offers:

What are Azure Reservations? - Microsoft Cost ManagementMicrosoftLearn
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Cloud Solution Provider program overview - Partner CenterMicrosoftLearn
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Pay As You Go—Buy Directly | Microsoft AzureMicrosoft Azure
Enterprise Agreement | Microsoft Volume Licensing
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Get started with Microsoft Customer Agreement billing account - Azure - Microsoft Cost ManagementMicrosoftLearn
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Azure Hybrid Benefit - Hybrid Cost Calculator | Microsoft AzureMicrosoft Azure
Azure Dev/Test pricing | Microsoft Azure
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Create free services with Azure free account - Microsoft Cost ManagementMicrosoftLearn
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Microsoft Entra licensing - Microsoft EntraMicrosoftLearn
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Azure Benefits and incentives | Microsoft Azure
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