Azure Compute and Storage Commitments for FY 2013 and monthly cost for commitments RRS feed

  • Question

  • I have came to know that minimum commitment for Windows Azure Compute will increase to 1,000 small VMs per month.  Windows Azure Storage minimum commitment will remain at 500TB storage per month.

    If we register for rhis commitment, below is my calculation and cost per month.

    • If we signup, independent of whether we use or not it will be charged for consumption of 1,000 small VMs per month and 500TB storage per month.
    • 750(compute hours per month per Compute Commitment) x 1000(No. Of Compute Commitments) x $0.054(cost per hour) = $40,500 per month for Azure Compute Commitments.
    • 500(Storage Commitments in TBs)*1024*$0.08(Cost per GB stored per month) = $40,960 per month for Storage commitments
    • So a Total of $40,500 + $40,960 = $81,460 per month has to be paid.

    Here my question is, are there be people/industries who is going to register for commitment  and pay $81,460 per month? Or is there any mistake in my calculation/assumption?

    Friday, June 8, 2012 1:43 PM


All replies

  • are you talking about the 6month plan which you can commit for to gain some discount on standard prices? As far I know you can signup on single unit commitments, such as 1small VM. The scale you talk about doesn't even sound reasonable for a standard EA, so I'd be really curious where you heard of these figures.

    Friday, June 8, 2012 3:59 PM
  • Here is the text we have got from Azure business desk. Can you please tell me if my understanding is wrong?

    Azure Compute and Storage Commitments for FY 2013 are changing.  As of July 1st, the minimum commitment for Windows Azure Compute will increase to 1,000 small VMs per month.  Windows Azure Storage minimum commitment will remain at 500TB storage per month.  Storage commitment rates are only for geo-redundant storage, and not locally redundant storage.

    How this will affect your Windows Azure account?

    1.        If your account is registered for commitment below the FY 2013 minimums (1,000 Small VMs/month, 500TBs/month), Azure Business Desk will automatically reset your account back to consumption on July 1<sup>st</sup>.
    2.        For FY 2013, commitment will be maintained by the Azure Business Desk. If you want to register for commitment you will need to send communication to the Azure Business Desk and request that your account be updated.
      1.        You have to commit to at least the minimum amounts (1,000 Small VMs/month, 500TBs/month)
      2.       Commitments can increase but cannot decrease
      3.        Commitments are only for FY 2013
    3.        There is the ability to set commitments at the PC level.  Commitments set at the PC level will override any commitment set at the individual account registration level. Commitments set at the PC level will be allocated on pro rata basis to all individual registrations under that PC based on usage, in order to maximize the commitment savings.
    4.        If you know that Compute and/or Storage commitment will be required for FY2013, please send request to AZBD by June 15<sup>th</sup> and we can ensure that Commitments are in place for FY 2013.

    Compute Commitment Details:

    1.        Minimum Compute Commitment is 1,000 Small VMs
    2.        One Compute Commitment Unit = 750 compute hours per month, small instance equivalency
    3.        Commitments are set at budget time for the fiscal year.   Commitment customers will be asked to provide a quarterly forecast update.  At that time, they may either adjust their commitment for the remainder of the fiscal year upward or leave unchanged.   If they do adjust their commitment up, it will become the new full year commitment (and replace budget or prior forecasts).
    4.        If you consume more hours than commitment, you will be charged consumption pricing for any overage
    5.        You will be charged for commitment amount, even if you do not consume the total amount of commitment

    Friday, June 8, 2012 4:34 PM
  • Hi, to get detailed information about purchasing and billing, it is recommended to contact our support on https://support.microsoft.com/oas/default.aspx?prid=14234&st=1&wfxredirect=1&sd=gn

    Please mark the replies as answers if they help or unmark if not. If you have any feedback about my replies, please contact msdnmg@microsoft.com Microsoft One Code Framework

    • Marked as answer by Arwind - MSFT Thursday, June 14, 2012 11:34 AM
    Monday, June 11, 2012 2:29 AM