Azure and their licensing models simply explained.
Azure is Microsoft’s cloud platform. A customer can buy the Azure services through a Microsoft recognized partner, a Volume Licensing Agreement, direct from Microsoft or direct from Microsoft website.
The type of Azure services available are Consumption services, User licensed services and Marketplace solutions.
An Azure subscription is set up before a customer can use the consumption services. The set up involves a “resources” creation, after which they are assigned to a Subscription. The initial subscription set up, has no payment commitment. Payment starts only from charges incurred when the resources are in use.
Consumption services are paid for in one of two ways: either with an Azure prepayment or monthly in arrears, depending on the way the customer buys the Azure services.
The User licensed services on the other hand are when some services are bought as User Subscription Licenses (User SLs) on a per user per monthly basis. The User SLs are typically paid for upfront annually when bought through a Volume Licensing Agreement and either annually or monthly when purchased through the Microsoft website or through a CSP.
With the Marketplace solutions, it allows partners, and Microsoft, to offer solutions built on Azure for customers to buy. These solutions are either licensed and paid for at the end of the month on a consumption basis, or as a monthly or annual license for use of the service.
For more clarity on a subscription and how it will meet your business needs, contact our team of independent license experts to guide and support