How do I manage my Azure Pricing?

Cloudmore makes it easy to manage Azure pricing, allowing brokers to set the pricing agreed with the end customer and generate their monthly billing data

Accessing Azure Price Management

Follow the instructions below to learn how to manage the pricing for the Microsoft Azure service.

From the Broker menu navigate to My Services > Azure > Price Management.

To manage  Azure pricing we provide the ability to make adjustments across the different models 

    • Classic Consumption
    • Azure Plan Consumption
    • Reserved Instances
    • Microsoft Software subscriptions
    • Marketplace Items
    • Perpetual Licenses 

To understand each model click here to view our blog 

The process to set an adjustment is the same at each level and is described below

      Azure Price Management

        Follow the instructions below to learn how to adjust pricing for the Azure service.

        • Default Broker Price Management (All Organizations)
        • Organizations Price Management (Specified Organizations)
        • Subscriptions Price Management (Specified Subscriptions for an Organization)

        To amend a percentage adjustment across any of the pricing matrices, navigate to the section and from the required line for the adjustment and open the Actions option.

        IMPORTANT:  

        Please read the section Examples of Azure Price Management before making any adjustments.   

        It is recommended that you set a broker default % for Reserved Instances and Marketplace Service, if no % is added the sales price generated in the billing report will be the same as the cost price.   

        Cloudmore billing reports will display the difference between Total Costs and Total Sales as a percentage margin. When entering price adjustments these are expressed as markup/markdown percentages.

        For example to meet a margin of 15% the user should enter a price adjustment of 17.65 

        For assistance in calculating the markup/markdown, this link will take you to the omnicalculator where when a margin is entered it will show the equivalent markup

         

        AzurePriceMgt1

        AzurePriceMgt3

        Click on the required 'Edit' option, change the Adjustment (%) amount to be applied and enter an Active Date from which the margin will be applied. Press Update

        AzurePriceMgt2

        Click on the required Edit Azure option, change the Adjustment (%) amount to be applied to the named organization using the Azure model, and apply an Active Date from which the margin will be applied. Press Update

        AzurePriceMgt4

        Examples of Azure Price Management 

         

        Azure Classic: 

        Microsoft does not provide separate cost and sales prices and does not pay a rebate or partner earned credit, Brokers have the option to add a margin percentage. 

        Required Margin  Price Adjustment  Item Type Example Unit Cost Price Sales Cost after Adjustment
        No Entry   Classic 100.00 100.00
        5% Margin Added   Classic 100.00 105.26
        15% Margin Added   Classic 100.00 117.65

        Azure Plan Consumption:

        Microsoft publishes a list price in US dollars, and CSPs receive a Partner Earned Credit (PEC), which is a rebate of around 15%. Adjusting the Price will increase or decrease the PEC applied to each billing line dependent on the negative or positive entry into the table. 

        Required Margin

        Price Adjustment 

        Item Type Example Unit Cost Price   Sales Cost after Adjustment
        No Entry 0 AzurePlanConsumption 100.00 117.65
        -5% Adjustment -5.55 AzurePlanConsumption 100.00 111.11
        5% Adjustment 5.55 AzurePlanConsumption 100.00

         125.00

        Azure Plan Reserved Instance:

        Microsoft does not provide separate cost and sales prices and does not pay a rebate or partner earned credit for reserved instances, the broker has the option to add a price adjustment. The Price Adjust in this case is based on a Markup or Markdown basis 

        Required Margin Price Adjustment  Item Type Example Unit Cost Price   Sales Cost after Adjustment
        No Entry 0.00 ReservedInstance 100.00 100.00
        5% Adjustment 5.26 ReservedInstance 100.00 105.26
        15% Adjustment 17.65 ReservedInstance 100.00 117.65

        Azure Plan Software Subscriptions

        Brokers buy these services at a unit cost price and sell them at Microsoft’s suggested sales price which is usually 15% Markup

        Required Margin on Microsoft RRP Price Adjustment Item Type Item Price  Example Microsoft RRP Sales Cost after Adjustment
        No Entry 0.00 Subscription 100.00 115.00 115.00
        -5% Adjustment -4.76 Subscription 100.00 115.00 109.52
        10% Adjustment 11.11 Subscription 100.00 115.00 127.78

        Azure Plan Marketplace

        Microsoft does not provide separate cost and sales prices and does not pay a rebate or partner earned credit for reserved instances, the broker has the option to add a price adjustment 

        Entry in Cloudmore Pricing Matrix   Item Type Example Unit Cost Price Sales Cost after Adjustment
        No Entry   Marketplace 100.00 100.00
        5% Adjustment   Marketplace 100.00 105.00
        15% Adjustment   Marketplace 100.00 115.00
         

        Azure Perpetual Licenses

        Brokers buy these services at a unit cost price and sell them at Microsoft’s suggested sales price which is usually 15% Markup

        Required Margin on Microsoft RRP   Item Type Example Unit Cost Price Example Microsoft RRP Sales Cost after Adjustment
        No Entry   Perpetual License 100.00 115.00 115.00
        -5% Adjustment   Perpetual License 100.00 115.00 109.25
        15% Adjustment   Perpetual License 100.00 115.00 132.25

         

        Price Lists

        A Price List that can be accessed in Cloudmore for Reserved instances and Software Subscriptions. Brokers can use the price list to set an agreed price that will overwrite the pricing matrix 

        Go to  Broker Menu > Billing > Price List.

        Choose  Azure Pricelist > Reserved Instances or Software subscriptions  from the dropdown options.

        The list displays the Microsoft Cost Price, the Suggested price, and the Sales price to the customer. 

        Price Adjustments can be applied at the Broker level and will affect all customers or at the Organizational level for a specific customer.

        Where specific pricing is entered this will replace and supersede the margin that has been previously applied for that item 

        2020-10-16_12-45-11

        To review the history of any of the margins contained in these screens the Actions key contains a History link. Click on this to open and view the original setting and changes applied.

        History-1

        The History log is divided initially by the Model Type and is then ordered by the date of the event

         

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