Microsoft is evolving its Azure subscription package to provide added value, simplified pricing, and a more streamlined agreement for both partners and customers. Also, Microsoft will be continuously migrating partners from their current Azure subscription to an Azure plan. The first phase of the Azure plan migration began in July 2021.
Transition into three phases
The Azure Plan transition won’t happen suddenly. But it’s important to be aware of what’s coming and to be proactive about migrating to the new plan. Those with legacy plans beyond phase two will no longer receive incentives or CSP discounts.
Phase 1 - In July 2021 where CSPs began working on the new offering, Azure Plan. Here is what you need to know:
Partners currently using the Azure Subscription as of July 2021 can continue using the subscription (and continue providing Azure services to their customers) until the start of the next phase.
Partners are only able to sell the Azure Plan to new customers from July.
Phase 2 - will begin in 2022, where incentive add-ons and margin for Azure Subscription will be disabled at this stage. Microsoft will notify partners about the second phase six months before the phase begins.
From February 1, 2022, benefits will no longer apply to legacy plans. At this point, it's important to talk about the new Azure plan and its benefits. Make sure you meet the requirements (at least silver proficiency level) to receive the new plan incentives.
Phase 3 - Eventually, all remaining customers of the original Azure offering will be migrated to the new Azure plan. Customers will know in advance the deadline for stage 3. Phase 3 is still unknown, but the phase will include any CSP customers that haven‘t migrated by that time to be automatically migrated to the Azure Plan. Microsoft will notify partners about the third phase also six months before the phase begins.
So what’s new with the Azure Plan?
The Azure Plan will feature new changes in the following areas:
1. Smart account management hierarchy.
2. Former margins will be replaced by Partner Earned Credit.
3. Prices will be in local currency based on the USD price list and monthly exchange rate
4. New opportunity to leverage Cost Management service.
5. Smarter ACMP reporting.
6. New tiered-price offering for selected services.