Design and Implement Licensing & Subscription Validation for Azure-Deployed Application

Question

I want tp design the licensing model for the application deployed in customer subscriptions via Microsoft Azure. Customers will purchase and pay for the plan using their credit card (via Marketplace or direct billing).

The solution must handle the complete subscription lifecycle, including:

Validation of active subscription status

Handling plan expiration, cancellation, or payment failure

Grace period definition (if applicable)

Automatic restriction or disabling of selected application features when the license becomes inactive

• Re-enablement of functionality once payment is restored

Answer 1

To design a licensing model for an Azure-deployed application that handles the complete subscription lifecycle, you can follow these guidelines:

1. Validation of Active Subscription Status: Utilize REST APIs to check the subscription status of users. This will help you determine if a user has an active subscription and if they are entitled to use your application.
   • You can use the API to get the subscriptions that a user has an entitlement to use, which will provide the necessary information regarding their subscription status.
2. Handling Plan Expiration, Cancellation, or Payment Failure: Implement logic to monitor the billing state of subscriptions. If a payment fails, the subscription can enter a dunning state, where you can still allow access until the end of the current billing period. After that, if payment is not restored, the subscription should be canceled.
   • Customers can manage their subscriptions and cancel them through their Microsoft account services page.
3. Grace Period Definition: Define a grace period during which users can continue to use the application after a payment failure. Typically, this grace period can last up to two weeks, allowing time for payment issues to be resolved. After the grace period, if payment is still not made, the subscription will be canceled.
4. Automatic Restriction or Disabling of Features: Once a subscription becomes inactive, you should automatically restrict or disable specific features of your application. This can be done by checking the subscription status at key points in your application logic.
5. Re-enablement of Functionality: If a user's payment is restored, you can re-enable the previously restricted features. This can be managed through the same subscription validation APIs that you used to check the subscription status.

By implementing these components, you can create a robust licensing and subscription management system for your Azure-deployed application.