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Excerpt
For a BSS user to place an order for an Azure Reservation, the customer must have at least one active Azure subscription. The purchase process is  is initiated from the available action in on the Azure subscription details page.


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End of Sales by June 1, 2024

From June 1, 2024, the “Legacy Azure Reserved Instances” will no longer be available for purchase. This means that new purchases are prohibited, but existing Legacy Azure Reserved Instances will continue to function until reaching their end date.  

"Buy a Reservation" Action


The ordering process can be initiated from the "Buy a Reservation" action that is available from the "Shortcuts" menu of an Azure subscription.

This action is available only for active or "pending for cancellation" azure subscriptions that have been successfully provisioned in Microsoft partner center (i.e. their provisioning synchronization status is "synchronized"). 

Azure Reservations Ordering Wizard


The ordering wizard will help you to select the Azure reservation you want to purchase and the scope of the Reservation.

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Registration of the selected Azure Subscription

The active Azure subscription that you have identifying must be registered for purchasing an Azure Reservations. Our system will first check if the selected Azure subscription is registered and if not it will try to register it by using Microsoft API.

If the registration of the Azure subscription fails, you will receive the error message and the ordering process will be aborted.

Selecting the Reservation Type and the Scope

The user must first select the type of the Azure Reservation he wants to buy. There are 3  The available types are:

  1. Virtual Machine
,
  1. SQL Database
and
  1. Cosmos DB
  2. SQL Data Warehouse.
  3. Azure Databricks
  4. App Services
  5. Managed Disks
  6. Storage Reserved Capacity
  7. Data Explorer
  8. Database for MySQL
  9. Database for MariaDB
  10. Database for PostgreSQL

He must also select the scope which can be:

  • Single. If the user selects this option, the Azure reservation will be linked with the Azure subscription that the user selected for initiating the ordering process.
  • Shared. If the user selects this option, the Azure reservation will be provisioned with shared scope in Microsoft systems.

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Search Filters

Upon selecting the reservation type, a list of search fields will be displayed for helping the user to identify the Azure Reservation he is looking for. The list of filters vary depending on the reservation type:

  • Virtual Machine Reservation Type. The available filters are Data Center, Terms, Category, Cores and RAM.
    • Data Center: A list of Microsoft data centers. It is a compulsory field and upon defining it, the system will load a list with all the available Azure Reservations for the selected data center.
    • Terms: 1 or 3 years term.
    • Category: The Azure Reservation categories like "compute optimized", "general purpose" etc. 
    • Cores and RAM. Filters for defining the Cores and RAM of the Azure Reservation.


  • SQL Database Reservation Type. SQL Data Warehouse, App Services, Storage Reserved Capacity Reservation Types: The available filters are Data Center and Terms
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  • Cosmos DB Reservation Type. , Azure Databricks, Data Explorer Reservation Types: There is only the Terms filter. Upon selecting this reservation type, the system will load also all available Azure Reservations.
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  • Managed Disks, Database for MySQL, Database for MariaDB, Database for PostgreSQL Reservation types: There is only the Data Center filter. 

List of Available Azure Reservations

The list of available Azure Reservations is loaded based on the filters the users selected and the country of the customer. Since Microsoft has rules where some Azure Reservation SKUs can be sold only to specific countries, we filter the list of the available reservations based on the country of the customer. Our system is aware of the customer country from the Azure subscription the Storefront user selected for initiating the ordering process.

For each Azure reservation, we display the product description which is the Microsoft SKU title and description. We don't display yet any pricing information in this step. The price information will be available when you add the selected Azure reservation to your order. 

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Searching for a Specific Azure Reservation

The ordering wizard includes a search box where the user will be able to search for a specific Azure reservation either by its product name(title) or by its product description(subtitle). This search works in combination with the selected filters meaning that the search will be executed against the displayed set of products.

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Selecting the Azure Reservation

You can purchase only one Azure Reservation by selecting the radio next to the item and defining the quantity you want. 

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Selecting Billing Frequency (when applicable)

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Microsoft has introduced a new attribute on Azure Reserved Instances SKUs named "Supported Billing Cycles". Available Billing Cycles (mentioned here from now on as "Billing Frequency") for Microsoft Azure Reservations are Monthly and One-Time.

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The 

The Billing Frequency option in BSS Reserved Instance ordering wizard appears only if the product allows monthly payments

(when the Billing Frequency checkbox on BSS product is true)

and the selected Azure product (SKU) is supported for both One-Time and Monthly billing frequency by Microsoft, otherwise, the reservation will get paid by a one-time upfront payment

(as-is)

. In case the "Billing Frequency" checkbox, located within the chosen Azure products' options is set

to 

to false, then the option Billing Frequency will not be displayed on the

BSSReserved

BSS Reserved Instances ordering wizard.

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How Does Monthly Billing Work?

Partners, that purchase the offer as they do with their one and three year Azure reservation purchases today, are now able to select to pay with either an upfront or monthly payment option. When Monthly billing is chosen, partners will be invoiced in equal monthly payments for the entire length of the term. Like any other Azure reservation purchase, the invoice currency will be based on your company's location.


After the SKU selection, a new section "Please, select the preferred billing frequency" is displayed having the "Billing Frequency" drop-down. The "Billing Frequency" option is a compulsory drop-down field (when applicable) that is displayed on BSS Reserved Instances ordering wizard, once the user selects a specific product that supports monthly payments. Since the "Billing Frequency" is an option on some specific Azure products (SKUs), we display it only if it is supported by the specific Microsoft Azure SKU. So, after the SKU selection, a new section "Please, select the preferred billing frequency" is displayed having the "Billing Frequency" drop-down. The The default value of the "Billing Frequency" drop-down is set to "One-Time".

As the names suggest, the One-Time Billing Frequency option is used for paying the whole order cost of a chosen Azure Reserved Instance product (SKU) in advance, whereas the Monthly Billing Frequency option is used for dividing the whole order cost of a chosen Azure Reserved Instance product in into equal monthly parts.

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For example, if the chosen Azure RI product (SKU) has a billing period of one year and the monthly billing frequency is allowed by Microsoft and enabled for that product in BSS billing options, then by choosing the Monthly Billing Frequency, the product cost price (i.e. 1000 USD) will be divided into 12 months (terms).

As a result, a thousand US dollars divided by twelve months of a year, results in a monthly charge of 83.33 USD. The last part of the calculation is the rounding process in which the rounding is being implemented on the two decimals.

 

When you have finished with all the choices provided within the BSS Reserved Instance ordering wizard, please proceed with your order by clicking on the "Add to Order" button.

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Calculating RI Monthly Charge

In order for a Reservation to be paid monthly, some extra calculations are necessary. Azure Pricing Details do not changeremain as-is. However, the following cases illustrate the logic behind the extra calculations.

If no pricelist is applied:

Cost price: Is the price retrieved via excel/Number of SKU terms 

  • Sell price: Is the actual product's sell price defined in edit pricing info/Number of SKU Terms.
  • Pricelist applied with: (product assigned itself or via a price group)

    • Markup: The markup applies to the product cost price, which is retrieved by the excel file.
      • Cost price:Is the price retrieved via excel /divided by the Number of SKU terms.
      • Sell price:Is calculated as follows: cost price/Cost Price divided by the Number of SKU Terms > PL Markup applies terms (Pricelist Markup applies).
    • Margin (the margin applies to the product cost price).
      • Cost price:Is the price retrieved via excel /divided by the Number of SKU Termsterms.
      • Sell price:Is calculated as follows: cost price/Cost Price divided by the Number of SKU Terms > PL terms (Pricelist Margin applies).


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    Product Decimals and Rounding

    On order item unit price and order cost price we display the above prices with the product's number of decimals, on order item discount we display discounts with product's number of decimals, all order item totals, and order totals (on the right top) are rounded up to 2 decimals. We use that BSS behavior in Monthly Payments, too.


    Azure Reservation Order


    By pressing "Add to Order", an order will be created with one order item for the selected Azure Reservation. The order item will include the generic product "Microsoft Azure Reserved Instances", but in the item characteristics, you can see the Azure Reservation you have purchased. Please examine both cases of orders (One-Time & Monthly Billing Frequency) as depicted in the two following distinct tabsexamples

    • Order based on "One-Time" Billing Frequency.

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      For the calculation of Azure Reservation unit price, our system will use account's related price list
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    • Order based on "Monthly" Billing Frequency.

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      For the calculation of Azure Reservation unit price, our system will use account's related price list (if any)
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      Order View of an RI with Monthly Billing Frequency

      During the add to Order action on BSS RI wizard, a new order is created with the RI product. In the created BSS order, the order item for Reserved Instance product will have as unit price the total reservation cost divided by the number of RI terms and rounded up to 2 decimals. However, we also keep the reservation's total price which is calculated by multiplying the divided rounded unit price by the number of reservation terms. Specifically, we get the reservation's total cost from the excel file, we divide it by the Reservation's number of terms,  we apply the Pricelist's discount and we round up this amount to 2 decimals. This is the order's item unit price when billing frequency is set to Monthly. We also keep the reservation's total cost which comes from the multiplication of rounded unit price with the number of SKU's terms.
      Example: Reservation's total cost for 3 years comes from MS Pricelist = 439,20 €/Instance. When this product is added to an order with a monthly billing frequency, the order's item unit price: 439,20 € / 36 months = 12,20 €, apply 10% margin, so order's item unit price = 13,55555555555556 ≈ 13,56 € (after rounding up to 2 decimals according to our Rounding policy). We also keep and save as reservation's total cost = 15,06€ * 36 (months) = 488,16 €
      We also take into consideration the orders cost price. Since the order's unit price is the divided amount, order cost price should also be divided. Order's cost price for an RI order item is the RI's cost price we get from Microsoft's pricelist with no Pricelist discount. Order item cost price should be monthly too, when an RI is chosen to be paid monthly. We have the following option to find the order's item cost price: 
      Calculate order unit price by order cost price: Microsoft's price = 439,20 € / instance. Divide this amount by 36 (SKU terms) → 439,20/36 = 12,20€/Month → This is the order's time cost price apply 10%Margin : 12,20/(1-10%) =  13.55555555555556 ≈ 13,56 € (after rounding up to 2 decimals according to our Rounding policy)

    For more details By clicking on the "Sheet" icon Image Added, next to the "Description" of the product, you can view (but not edit) the order characteristics of the product, along with the chosen price list.

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    Wrong Price List Leading to Wrong "Discount" and "Total Amount" Numbers in Order
    Please be cautious with the price list in use because if a wrong price list is selected, it results in the following wrong order, where the "Discount" and the "Total Amount" numbers are erroneous.
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    If you see such elements (highlighted in black) in an order, please delete it and rebuilt it from the ordering wizard by first adding the right price list.


    For more information on how the Azure Reservations are billed, check please v2Billing please continue to the "Billing an Azure Reservation" page.

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    Do not edit Editing an Azure Reservation Order Item

    Although our system allows Our system does not allow you to edit the Azure Reservation Order item, we advise against it. If you want to change something in your order, you should can delete the order that was created and re-run rebuild it from the ordering wizard.


    Order Execution


    For executing the order you created, you need to select the "Execute Order" from the Shortcuts menu.  You must select the 3rd option and as "Start Date" set always today.

    The execution process will:

    • Provision the Azure Reservation in Microsoft System
    • Create an asset record that is the representation of the Azure Reservation in BSS.
    • Invoice the Azure Reservation.

    Provisioning an Azure Reservation

    Before completing the order execution, we will do again a check if the selected Azure subscription has been registered for purchasing an Azure Reservation. If it is successfully registered, we will proceed with the provisioning of the Azure reservation in Microsoft systems. 

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    We don't support yet to grant the owner role to the end customer to the Azure Reservation. This means that you (the CSP) are the owner of the Azure reservation and you need to login into the Azure portal for making the end customer the owner of the Azure reservation.

    Viewing the "Monthly Fixed Charges" Plan

    To examine the plan of the "Monthly Fixed Charges", please continue to the "Azure Reservations Assets - View Monthly Fixed Charges Plan"page.

    Invoicing an Azure Reservation

    To examine the invoicing of an Azure Reservation, please continue to the "Invoicing an Azure Reservation" page

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