Editorial photograph of a CFO and cloud lead reviewing MACC commitments
Service / Azure MACC

Microsoft MACC commitment advisory.

Size the right MACC. Negotiate the protection clauses. Manage the burn rate. Independent advisory across every stage of the Microsoft Azure Consumption Commitment.

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500+Enterprise clients
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500+ Enterprise Clients
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The Microsoft Azure Consumption Commitment buys discount on paper and creates overrun risk on the cloud bill. The advisory makes both work for the buyer.

Key takeaways

  • MACC is a multi year prepaid consumption commitment against Azure spend. Three and five year terms dominate.
  • Discount typically runs zero to twenty five percent depending on commitment size and Azure consumption mix.
  • Mis sized commitments produce eighteen to twenty eight percent overrun in our 2025 sample.
  • The protection clauses, not the discount, decide whether MACC pays back over the term.
  • Marketplace eligible spend, partner spend, and reserved capacity each have different MACC counting rules.
  • Mid term re negotiation is possible. Most estates do not exercise it because they do not know the path.
  • Renewal leverage is built across the term, not at the end. The advisory frames the renewal twelve months out.

Microsoft Azure Consumption Commitment is the dominant commercial form for enterprise Azure spend in 2026. Most estates above five million dollars in annual Azure cost now sit inside an active MACC.

The discount is real. The risk is overrun. The buyer side advisory sits between the sizing model and the protection clauses, and stays through the burn rate management and the renewal.

This page sets out when we help, how the work runs, what gets delivered, what the outcome looks like, and the engagement model.

When we help

We engage at three points in the MACC lifecycle.

New MACC sizing

Pre signature. The sizing model, the protection clauses, the carve outs, and the discount target. Twelve weeks of advisory inside a fixed fee.

Mid term re negotiation

An overrunning MACC can be re sized. A mis sized MACC can be reset. Both are possible in years two and three with the right governance.

MACC renewal

Twelve months before the existing MACC ends. Set the renewal target, build the leverage file, and run the conversation with Microsoft.

How we help

The work runs across four parallel tracks.

Sizing model

We build a bottom up consumption model. Compute, storage, networking, PaaS, marketplace, and reserved capacity. Each line modelled across three and five year horizons.

  • Compute baseline. Current production load with growth assumptions.
  • PaaS exposure. Azure SQL, Cosmos, Synapse, Fabric.
  • AI consumption. Azure OpenAI, Copilot platform, custom models.
  • Marketplace. Eligible third party SaaS through Azure Marketplace.

Protection clauses

Overage rate caps, true down rights, carve outs for marketplace, partner billed counting, and the right to re sign under defined conditions.

Discount targets

Benchmark discount against tier, commitment size, and Microsoft fiscal year. Target the high end of the band rather than the published guideline.

Burn rate management

Monthly burn tracking, quarterly steering review, and a structured intervention path when consumption drifts.

MACC sizing scenarios from a recent engagement.

Scenario Annual Commit Discount Estimated Burn Variance
Microsoft proposal$22.0M12%$24.6M+12% over
Conservative size$17.5M16%$19.4M+11% over
Base case$19.0M18%$19.7M+4% over
Stretched size$20.5M20%$20.1M-2% under
Final signed$19.0M19%$19.4M+2% over

Deliverables

Every engagement produces the same artifacts.

MACC sizing model

Excel based bottom up model with sensitivity ranges and three scenarios. Conservative, base, and stretched.

Protection clause pack

Drafted language for overage caps, true down rights, marketplace carve outs, and re sign conditions.

Burn rate playbook

Monthly tracking template, quarterly steering pack, and intervention path for drift.

Renewal brief

Twelve month leverage file for the next renewal cycle.

Microsoft sells a MACC like a discount. It is a commitment. The discount is the wrapper. The commitment is the contract.

Outcome

Three measurable outcomes.

Protected commitment

A MACC sized within five percent of actual consumption over the term. Average across our 2025 cohort sat at three percent variance.

Discount captured

Average discount captured was nineteen percent against a published guideline of twelve to fifteen percent for the same band.

Renewal posture

A leverage file ready twelve months before renewal. Negotiation runs on facts, not on Microsoft framing.

Engagement model

Two options.

Fixed fee project

Single project, fixed fee, eight to sixteen weeks. Sizing, clauses, and the protection pack.

Vendor Shield subscription

Twelve to twenty four month always on subscription. Covers MACC, EA, Copilot, M365, and the rest of the Microsoft estate.

Suggested reading

What to do next

  1. Pull two years of Azure consumption data from Cost Management.
  2. Map current spend across compute, storage, PaaS, AI, marketplace, and reserved capacity.
  3. Build the bottom up sizing model with growth assumptions for the term.
  4. Benchmark Microsoft's proposed discount against the band for your commitment size.
  5. Draft protection clauses for overage cap, true down rights, marketplace carve out, and re sign conditions.
  6. Run the monthly burn rate tracking from day one of the new MACC.
  7. Open the renewal conversation twelve months before the existing MACC ends.

Frequently asked questions

How long does a typical MACC engagement take?

Eight to sixteen weeks for new sizing. Mid term re negotiation can run six to twelve weeks depending on Microsoft posture. Renewals start twelve months out and run across the year.

Can we exit a MACC early?

Almost never without a re sign. Microsoft is open to mid term re sizing in years two and three when the commercial story supports it.

What discount should we expect?

Published guidance is twelve to fifteen percent for mid sized MACCs. Our 2025 sample averaged nineteen percent at the same band. The protection clauses matter more than the headline discount.

Does marketplace spend count toward MACC?

Eligible marketplace spend counts up to a defined limit per Microsoft policy. The eligibility list and the limit are negotiable inside the MACC.

What if our consumption falls below the commit?

The shortfall pays Microsoft anyway. True down rights and protection clauses negotiated at signature limit the downside.

Is MACC the same as Azure Enterprise Agreement?

No. MACC is the commit. The EA is the broader agreement that holds licensing and other terms. They interact but they are negotiated separately.

Microsoft EA Renewal Playbook

The full microsoft ea renewal playbook framework from the Microsoft Practice.

Microsoft renewal moves, the EA framework, the M365 SKU framework, the Copilot framework, and the buyer side moves across the full Microsoft estate.

Used across more than five hundred enterprise engagements. Independent. Buyer side. Built for procurement leaders running the next renewal cycle.

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3 to 5
Year Term
0 to 25%
Discount Range
18 to 28%
Mis sized Overage
100%
Buyer Side
100%
Buyer Side

MACC discounts are real. MACC overruns are real. A good advisor manages both before the contract is signed.

Fredrik Filipsson
Co Founder, Redress Compliance
Deep Library

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