IMPORTANT SUPPLEMENTAL TERMS AND CONDITIONS
Where you have purchased Microsoft Azure either independently or in connection with any Service (including under an Enterprise Agreement), these additional Terms and Conditions apply to your access to and use of Microsoft Azure. The placement of your initial Azure Purchase Order with Insight, as well as your use of Microsoft Azure will serve as your firm and binding commitment to these Supplemental Terms and Conditions. If you do not agree to these terms and conditions, then you may not access and/or use or consume Microsoft Azure.
Azure Billing and Overages
Microsoft Azure services are billed by Insight based on your upfront monetary commitment, or the services you use, whichever is greater. For example, if you sign up for a minimum monetary commitment plan that allows you to spend $100 on Azure services over a one-month period, but then you end up using $150 worth of Azure services in that same period, you will be billed an additional $50 for the excess consumption, on top of your $100 minimum monthly monetary commitment. Microsoft, who tracks your usage, refers to this excess as an “overage.” If in the prior example you did not sign up for a minimum monetary commitment, you would be charged for the actual amount of Azure services you used in the applicable monthly reporting period ($150 in this example).
- If you have used Microsoft Azure services in the past (through Insight or another Microsoft resale partner), Insight can provide you guidance on how to select minimum monetary commitment levels to minimize unexpected overages and help you build effective budget estimates to better manage Microsoft Azure fees, based on your past usage patterns.
- If you have any policies or special requirements relating to government appropriations, budget allocations or related billing/payment processes that could impact the timely issuance of purchase orders, you will need to notify Insight as soon as possible and prior to any monetary commitment or Azure usage. Early notice to Insight will not only help you better manage your internal budget and comply with billing requirements, it will minimize the time and energy spent addressing unexpected payment obligations for Azure overages.
- If you are a new Azure user and you are encountering frequent overage charges, or if your capacity needs change materially from month-to-month, Insight can provide guidance on how to better manage your Azure requirements and minimize unplanned usage fees.
- In all instances, you are responsible for your minimum monetary commitment plus any overages, or your actual reported usage, whichever is greater.
Consumption Reporting Tools
You will have access to online Microsoft Azure consumption reports in your Azure EA portal at https://ea.azure.com that will provide you with access to data based on your actual usage (the “Azure Consumption Report”). This will allow you to monitor your usage and manage overages.
Purchase Orders and Invoicing
You acknowledge and understand that Insight will provide you an invoice based on your monetary commitment or actual usage of Azure services, whichever is greater, as reflected in the Azure Consumption Report for the applicable billing period. You agree that Insight is not required to wait for you to issue and for Insight to receive a separate purchase order to invoice you for the Azure services you have consumed. Instead, the Azure Consumption Report will serve as your firm and binding commitment to pay Insight for the Azure services you used in the applicable billing period per the report.
Where you fail to pay a bill, Microsoft reserves the right to delete your Azure credentials and/or stop any part or whole of the Azure services, at any time, without prejudice to your obligation of payment for consumption or usage generated until such deletion or stoppage.
If, for any reason, you dispute the actual usage as reflected in the Azure Consumption Report, you agree to notify Insight no later than five (5) business days after the close of each month so that we may pursue an appeal with Microsoft. If you do not notify Insight within this period, the Azure Consumption Report will be deemed accepted. Microsoft may issue a credit based on the results of the timely Insight appeal. If the actual usage is correct as reflected on the Azure EA portal, you will be bound by it.
Azure Purchase Options
There are different Azure Purchase options:
- Prepaid Three Year Monetary Commitment
- You may choose to pay upfront for an entire three-year term. If you do so, then you will have access to that entire paid allocation until it runs out, or the three-year term runs out, whichever event happens first.
- If your allocation runs out before the three-year term is over, you can always choose to enter into a new subscription for additional usage rights, however, subscriptions may not be combined. Instead, you can purchase multiple separate subscriptions.
- If you don’t use your entire allocation before the three-year term runs out, it will be forfeited.
2. Monetary Commitment Over Three Year Term Paid on Annual Basis
- If you choose to be invoiced for your three-year term on an annual basis, your allocation will be divided evenly over each year.
- If your annual allocation runs out in any year, you will not be able to access the next year’s allocation until you reach the next year. In that instance, you can always choose to purchase a new subscription for additional usage rights.
- If you don’t use your annual allocation at the end of any single year, it will be forfeited and may not be carried over.
3. Consumption Invoicing Paid in Arrears
- You may obtain Microsoft Azure Services without a monetary commitment. In that case, you will receive monthly invoices at “Consumption Rates” based on your actual consumption. Consumption Rates means the prices for Microsoft Azure Services outside of a Microsoft Azure Plan and may also be referred to as Overage Rates, which may vary based on type of service and volume.
- If you elect the fully Prepaid Three Year monetary commitment, the monetary commitment will be invoiced immediately for all three years.
- If you elect the Prepaid Annual monetary commitment option over a three-year term, the first allocated annual monetary commitment will be invoiced immediately, and future allocated annual commitments will be invoiced on the anniversary of the enrollment date.
- Azure services purchased without a monetary commitment are billed monthly in arrears based on actual consumption at Consumption Rates.
- If you have a monetary commitment and your usage is higher than your monetary commitment allocation, the excess will be invoiced at the end of each enrollment month.
- All usage of Microsoft Azure services after the expiration or termination of your monetary commitment plan will be invoiced at then-current Microsoft Consumption Rates on a monthly basis, based on actual usage.
- Azure Reservations. Azure Reservations refers to an advanced purchase of eligible Microsoft Azure Services for a specified term and region (e.g., Reserved VM Instances, Reserved Software Instances, etc.).
- If you elect to utilize Azure Reservations, you agree that you will be invoiced based on the reservation commitment without regard to actual usage.
- Azure Reservations are purchased for specified terms of up to three years with a single upfront payment.
- Azure Reservations expire at the end of the specified term. You will not be refunded payment for unused Azure Reservations.
- Azure Reservation Options: The following options apply to Azure Reservations that you have purchased.
- Exchange: is an option that allows you to apply the monetary value of a remaining Azure Reservation term to the purchase of one or more new Azure Reservations of equal or greater monetary value for the same service. You cannot exchange reservations of one type for another type (e.g., you cannot return a VM reservation to purchase a SQL reservation).
- Cancel: is an option that allows you to receive a prorated refund based on a remaining Azure Reservation term minus an early termination fee (previously, 12 percent, but will need to be determined at the time of election) and subject to a cancellation limit set by Microsoft (previously, $50,000 per year, but will need to be determined at the time of election).
Other Terms and Conditions
By ordering and/or using Azure services, you agree to be bound by the requirements above and by Insight’s terms of sale and Microsoft’s cloud provider terms and related policies which may vary depending upon your specific purchases.
Please feel free to reach out to your enterprise software account representative at the email address. Please also provide a copy of these terms to your finance/accounts team.
Thank you for partnering with Insight for your Azure needs.