What is a MACC?
Customers with sufficient spend often enter into Microsoft Azure Consumption Commitment (MACC) agreements, which provide discounts on Azure usage in exchange for a long-term spend commitment. These discounts are referred to as “negotiated rate” discounts.
Using Reservations and Savings Plans for Compute with a MACC
RI/SP discounts and negotiated rate discounts generally cannot be combined in Azure. In this case, the savings you stand to achieve from commitments versus on-demand usage are dependent on your negotiated rates. Discounts provided by reservations/savings plans (commitments) for Azure usage are usually superior to negotiated rates for on-demand usage. Since our service only impacts the use of commitments, we only apply our Savings Share to the savings generated by commitments. These savings are defined as the difference between what you would have paid for on-demand usage with your negotiated rates and what you actually paid using commitments.
Authoritative System of Record
ProsperOps considers Azure the authoritative system of record for resource expenses. This ensures the spend and savings values shown in our console always reflect the amount on your bill. We also rely on Azure for pricing information so we can accurately determine the difference between your negotiated on-demand rates and commitment rates.
Azure Savings Calculation Example
This example illustrates how ProsperOps separates commitment savings from other savings in Azure.
