Recent Changes in Azure Pricing and Licensing Are Helping Companies Succeed in Their Journey to the Cloud

Recently, Microsoft has made a few changes to their Azure offering that are helping companies make the leap to the cloud.

In October of 2016, Microsoft announced an Azure price reduction, lowering prices on some virtual machines (VM) by as much as 50 percent. Takeshi Numoto, Corporate Vice President, Microsoft Office Product Management Group, said, “As part of our continued commitment to deliver Azure to customers at the best possible prices, we are lowering prices on many of our most popular virtual machines (VMs).”

Microsoft also announced that as of February 1, 2017, they are ending the “pay-as-you-go” option for Azure customers using Microsoft Products and Services Agreement (MPSA). New customers will be guided towards Microsoft’s Cloud Solution Providers (CSP) program. Microsoft’s General Manager of Commercial Licensing, Richard Smith, spoke to InfoWorld about the decision, saying:

“We are guiding customers interested in Azure toward licensing options that best help them realize the full value of Azure services, leading with our partner value-added option.”

Our take: Microsoft’s new emphasis on its CSP program reflects a growing trend of organizations looking to “rent” rather than “buy.” Companies are wanting to get out of the data center business. This is because companies are realizing that they can provide the same level of service without the hassle and expense of managing their own facilities. Moving their IT infrastructure to the public cloud allows organizations to leverage the public cloud’s scalability and it also frees up IT teams to focus on their core business instead of routine operations. Partnering with a managed service provider to manage cloud infrastructure can take even more of the load off by managing day-to-day cloud operations, as well as key functions such as security and 24/7 monitoring.

The journey to the cloud can be complicated and costly. By reducing its prices and changing its licensing options, Microsoft is demonstrating that it is committed to setting up its customers for success.

To learn more about Microsoft Azure, check out the blogs below:

Recent Growth of Microsoft Azure

Increasing the Availability and Scalability of Cloud Applications with Microsoft’s New “High Availability Checklist” for Azure

Azure Stack Provides Consistency Across Cloud Platforms

Azure Portal vs Azure Classic Portal: A tale of two APIs

Tim serves as a product marketing manager for Rackspace; previously, he served as a product manager at Datapipe. Tim has unique insight into the latest product developments for private, public, and hybrid cloud platforms and a keen understanding of industry trends and their impact on business development. Tim writes about a variety of topics including security and compliance, business strategy and Microsoft Azure.