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January 13, 2017

Microsoft bins Azure pay-as-you-go model for new cloud customers

Move is described as being about “enhancing and creating synergies”.

By James Nunns

New customers heading to Microsoft Azure after the start of February will be guided towards the companies Cloud Solution Provider (CSP) programme instead.

What this means is that the company is effectively ending its pay-as-you-go Azure access for any new customers on its Products and Services Agreement. Instead, channel partners will have greater access in order to snap up the customers.

Richard Smith, GM, Commercial Licensing, described the move in a blog post as part of a goal to deliver, “a connected, modern purchasing for customers that enables new, innovative cloud and business scenarios, and quickly and easily scales as needs grow.”

The GM, who went on to describe the ‘modern licensing focus’ as being about “enhancing and creating synergies” across its three ways of doing business; value-added services, self-serve options, and Microsoft-assisted offers.

Cut through the marketing speak and what you have is the news that customers that want to use Azure on a pay-as-you-go model will need to go through Microsoft’s channel partners.

Microsoft basically wants customers to use its CSP programme, which is likely to please its channel partners. The move seems to suggest that Microsoft is trying to please its channel partners and has acknowledged the the importance of having a larger ecosystem that can tap into the transaction opportunity of Azure.

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What this also means is that channel partners can build a deeper relationship with customers.

There isn’t a price difference for customers, and new customers will be guided towards CSP from the 1st of February.

Existing customers through the MSPA will still be able to pay on the pay-as-you-go model.

Smith said: “Today, customers have a broad range of technology needs, priorities, and buying preferences – but they share the need to innovate more quickly than ever.  Enabling our customers’ innovation through a connected, modern purchasing experience is our north star.”

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