Azure Billing

Usage-Based Subscriptions in Work 365

Work 365 supports billing for Azure services through a Usage-Based Subscription model. This differs from License-Based Subscriptions in several key ways:

Key Differences

Quantity Tracking

• Usage-Based Subscriptions always have a quantity of 1.
• They do not track changes in quantity.
• Instead, they track provisioning changes, such as:
  • Activation
  • Deactivation

Pricing Model

• These subscriptions do not have a fixed cost price or selling price.
• Billing is based on actual consumption data from Azure.
• The selling price is calculated by applying a markup percentage (Markup %) to the cost derived from consumption.

The screenshot above shows a Usage Based subscription. The components of interest are explained as below

1. Provisioning Summary - this tab shows the provisioning events (Create, Activate & Deactivate) for this usage subscription.
2. Azure - this tab shows the consumption data associated with this subscription.
3. Markup % - this field shows the markup % applied to the consumption associated with this subscription. The markup % is applied when the consumption is imported into the system.
4. Consumption Threshold - use this field to provide the expected amount of usage (after applying markup). Once the consumption reaches 80% or more, the system will send out alerts.
5. Current Cycle Consumption - shows the current (unconfirmed) consumption associated with this subscription.
6. Threshold Status (%) - shows the ratio of current consumption vs expected consumption.
7. Last Known Revenue / Last Known Cost - these fields display the last billed details for this subscription.
8. Minimum commitment- Allows to bill a minimum commitment For example, they would like to setup a min billing of $100. If the usage is below that value, they'd still bill $100 but if it goes higher, then it'd get billed at actuals. This Field does not allow negative values. When the value is blank or zero, usage is billed at actuals When the value is greater than zero, usage is billed as max (minimum commitment, actual usage)

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Usage tab is deprecated

The Usage tab on the subscription form is deprecated and will be removed from a future release. Refer to the Azure tab for consumption details on this subscription instead.

The Azure Tab will show the following:

1. The confirmed tab shows consumption that is reported on your Microsoft Invoice
2. The Unconfirmed tab shows consumption that is not billed to you.
3. They Analytics will show the consumption trends and charts

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Partner Earned Credit:

The Partner Earned Credit can determined by the chart that displays the green line. If the line is dipping below your expected 15% margin you are not earning Partner earned credit. Regardless of whether you have PEC Work 365 applies the markup percentage that is applied on the Subscription

Available graphs are the representation of the subscription data. Graphs included:

• Usage By Month
• Revenue By Resource Name
• Revenue By resource Group
• Revenue By Service Type
• Revenue By Service Name

Unbilled Amount represents the amount which Provider has billed partner, but the end customer is not billed the customer. Unconfirmed Amount represents amount that Microsoft has yet billed to Partner.

Last Updatedrepresents date and time when the analytics tab was updated based on the data.