Questions on Azure Databricks prepurchase plan

Anil Kumar 520 Reputation points
2024-05-28T09:35:55.2666667+00:00

Hello,

Our customer had purchased Azure Databricks prepurchase plans but their utilization is not even 50% over 3 months and their expiry date is 15 months from today. Could you please clarify on following questions?

  1. Why Azure Databricks prepurchase plan comes with only upfront payment option?
  2. Can Azure Databricks prepurchase plans be exchanged?
    1. In case of exchange, can we buy reservation for some other service other than Azure Databricks ?
    2. If no, what do we exchange Azure Databricks prepurchase plan with?

Appreciate your insightful response.

Thank you!

Azure Databricks
Azure Databricks
An Apache Spark-based analytics platform optimized for Azure.
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  1. Bhargava-MSFT 31,121 Reputation points Microsoft Employee
    2024-05-28T17:58:13.43+00:00

    Hello Anil Kumar

    Here are the answers for your questions:

    Why Azure Databricks prepurchase plan comes with only upfront payment option?

    Azure Databricks prepurchase plans are designed to offer discounts in exchange for upfront payment. This model allows customers to save on their DBU costs by committing to a one-year or three-year term, with savings up to 37% compared to pay-as-you-go pricing. The upfront payment is a financial commitment that provides a discount rate over the standard pay-as-you-go pricing, reflecting the customer's commitment to using Azure Databricks over the term of the plan.

    Reference document:

    https://azure.microsoft.com/en-us/updates/azure-databricks-unit-pre-purchase-plan-is-now-available/

    Can Azure Databricks prepurchase plans be exchanged?

    Unfortunately, Azure Databricks prepurchase plans are not directly exchangeable for other services. Once you’ve committed to a DBCU plan, it remains specific to Azure Databricks usage.

    Can we buy reservation for some other service other than Azure Databricks ?

    As of now, Azure Databricks prepurchase plans are not designed to be exchanged for reservations of other Azure services. The commitment is specific to Azure Databricks usage, and Azure’s terms do not support swapping these commitments for other services.

    Reference document: https://learn.microsoft.com/en-us/azure/cost-management-billing/reservations/prepay-databricks-reserved-capacity#determine-the-right-size-to-buy

    Cancellations and exchanges

    Cancel and exchange isn't supported for Databricks prepurchase plans. All purchases are final.

    Reference document:

    https://learn.microsoft.com/en-us/azure/cost-management-billing/reservations/prepay-databricks-reserved-capacity#cancellations-and-exchanges

    I would suggest you to contact your Microsoft account manager for personalized guidance.

    I hope this answers your question.

    If this answers your question, please consider accepting the answer by hitting the Accept answer and up-vote as it helps the community look for answers to similar questions.


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