Microsoft Azure Consumption Commitment (MACC) Brings Discounts, Negotiation Leverage

• Microsoft Azure Consumption Commitment is an agreement to spend a specified amount on Azure, typically over a period of one to five years.
• Benefits include discounts on Azure services and third-party offerings that run in Azure, Microsoft credits and funding, and negotiation leverage.
• Risks include penalties for over-committing and a possible requirement to move from an EA to an MCA.
• MACC is different from Azure Prepayment, which is paid upfront; the Consumption Commitment is paid for as services are purchased.

Microsoft Azure Consumption Commitment (MACC) demonstrates to Microsoft a customer’s plans for long-term Azure spending. It is most appropriate for customers who understand what they will spend on Azure, either from past experience or detailed plans that predict forward costs. MACC is a part of a licensing agreement with Microsoft, and it is separate from Azure Prepayment and other Azure commitment purchases, such as reserved instances and savings plan for compute. MACC customers receive benefits, such as Azure discounts and negotiation leverage for other items within an Enterprise Agreement (EA) or Microsoft Customer Agreement for Enterprise (MCA-E), although Microsoft is shifting all but the largest customers who sign up for a MACC to an MCA-E.