Switching Partners // How to swap to month-to-month billing

Question

Hello,

My company currently has a managed service provider that was handling a large portion of our Microsoft resources, including an Azure environment that we used for our Dynamics NAV system.

This provider bills us yearly for our Azure system. Our new Business Central system will not be ready until the end of June, and our yearly subscription with this partner expires in May. From my research, it appears that operating month-to-month in Azure is not a problem, but I don't know how I go about getting control of our Azure resources to make that billing change. We would like to switch over to direct billing and not have to bill through a partner if possible.

I can't seem to find any place to open a direct support request with Microsoft on this topic, so I'm reaching for advice and guidance on this. Thank you in advance for any help you can provide.

If I wasn't clear in what exactly we are trying to do, please let me know what is needed from my end.

Answer 1

Hello @Steve Schorn@Steve Schorn

Thank you for posting your query on Microsoft Q&A forum.

You cannot simply “flip” a CSP‑billed Azure subscription to month‑to‑month direct billing yourself.

If your Azure subscription is currently under a Cloud Solution Provider (CSP), billing ownership belongs to the partner, not to you. To move to direct, month‑to‑month billing with Microsoft, you must change the billing owner of the subscription (or move the resources).

Azure services are always consumption‑based and billed monthly by Microsoft. Your yearly charge is imposed by the partner, not by Azure itself.

So, the real problem is: Your partner owns the Azure subscription under their Microsoft Partner Agreement (MPA).

Option 1: Transfer billing ownership

If the subscription is under a CSP Azure Plan, Microsoft allows billing ownership transfer, but only through the partner process , customers cannot initiate this directly.

Microsoft documentation confirms:

• CSP subscriptions can be transferred between partners or to a different billing agreement
• The process must be initiated and completed by the current partner
• Microsoft cannot bypass the partner on your behalf

https://learn.microsoft.com/en-us/azure/cost-management-billing/manage/transfer-subscriptions-subscribers-csp

What this gets you

• Same subscription
• Same resources
• No downtime
• Billing moves to a Microsoft Customer Agreement (direct PAYG) or another partner

What’s required

• Your current partner must submit the transfer request
• Your tenant must already own the subscription’s Entra ID (directory)

Option 2 (always possible): Create a new PAYG subscription and move resources:

If the partner won’t cooperate or time is tight:

1. Create a new Pay‑As‑You‑Go subscription directly with Microsoft
2. Move resources from the CSP subscription to the new subscription

https://docs.azure.cn/en-us/cost-management-billing/manage/subscription-transfer

Important facts

• Resource moves are supported for most Azure services
• Billing history does not transfer
• Running services continue during supported moves
• You cannot open a Microsoft support ticket to “take control” of a CSP subscription
• You cannot convert a CSP subscription to PAYG in the portal
• Microsoft will not override the partner’s billing ownership
• CSP subscription transfers are partner‑driven
• Microsoft Support does not initiate or force these changes for customers

https://docs.mycsp.io/mk/transferring-azure-subscriptions-1-partner-to-anot

That’s why there’s no direct “billing change” support option visible to you.

Given your timeline (May → June):

1. Ask the current partner immediately if they will:
   • Transfer billing ownership, or
     • Extend billing month‑to‑month for one additional cycle
     1. In parallel, prepare a direct PAYG subscription
     2. Validate which resources can be moved cleanly (VMs, storage, networking)

This avoids being blocked if the partner delays.

Azure itself is already billed month‑to‑month; the yearly charge is coming from the CSP partner’s billing model. To move to direct billing, the Azure subscription’s billing ownership must be transferred away from the partner, which can only be initiated through the partner. If that isn’t possible, the supported alternative is to create a new Pay‑As‑You‑Go subscription and move the resources. Microsoft cannot directly convert or take over a CSP subscription on the customer’s behalf. Thanks,

Suchitra.

Answer 2

To move from a CSP-managed yearly Azure arrangement to direct, month-to-month billing while keeping existing Azure resources running, the key is to transfer billing ownership of the subscriptions and then adjust access.

1. Confirm what type of Azure subscription is in use
   • If the current provider is a Cloud Solution Provider (CSP), the Azure subscriptions are under an Azure plan in the provider’s Microsoft Partner Agreement (MPA).
   • Billing ownership must be transferred away from the partner to a billing account controlled by the company (for example, a direct Microsoft Customer Agreement or Enterprise Agreement), or to a different partner if desired.
2. Work with the current partner to transfer the Azure subscriptions
   • For subscriptions under an Azure plan with a partner, the transfer is initiated and processed by partners and Microsoft, not unilaterally by the customer.
   • The partner follows the documented process to transfer subscriptions under an Azure plan to another CSP or to a different billing construct. The customer must coordinate with the partner to:
     • Identify the subscriptions to transfer.
     • Ensure the Microsoft Entra directory (tenant) of the subscriptions matches the directory that will own the subscriptions after transfer. If not, the directory association must be corrected before transfer.
   • For CSP-to-CSP scenarios, partners use the “Transfer a customer's Azure subscriptions and/or Reservations (under an Azure plan) to a different CSP” process referenced in the customer article.
3. Understand what transfers and what does not
   • When billing ownership of Azure subscriptions is transferred:
     • All Azure resources in the subscription (VMs, disks, websites, etc.) transfer with preserved subscription IDs and resource IDs.
     • Azure Marketplace products that are enabled for CSP transfer with the subscription; products not enabled for CSP cannot be transferred.
     • SaaS products do not transfer automatically; billing and resource ownership for SaaS must be moved separately via an Azure support request.
   • Azure support plans do not transfer. If all subscriptions are moved away from the current billing account, any existing support plan on that account should be cancelled, and support will then be handled under the new billing arrangement.
4. Ensure subscriptions are in a transferable state
   • Subscriptions must be active; disabled subscriptions cannot be transferred.
   • There is no service downtime during a billing ownership transfer; Azure services continue running while only the billing relationship changes.
5. Plan for user access and partner access changes
   • Azure RBAC assignments for existing users, groups, and service principals are not changed by the billing transfer. Access to resources remains as-is.
   • The new billing owner (if it is the company directly) does not automatically receive new Azure RBAC permissions; appropriate roles must be assigned after transfer.
   • The previous partner retains any Azure RBAC access it already had. It is important to:
     • Remove Azure RBAC role assignments for the old partner after the transfer.
     • If a new partner or internal admin team will manage the environment, assign them appropriate Azure RBAC roles.
   • Admin on Behalf Of (AOBO) access for partners is not automatically granted to a new partner and must be explicitly set if a new partner will manage the environment.
6. If moving from an Enterprise Agreement with a partner to a partner-managed MPA (or vice versa)
   • Azure Expert MSP partners can request to transfer Enterprise subscriptions, reservations, and savings plans to an Azure plan under their MPA. The reverse direction (moving away from a partner to direct) requires working with Microsoft and/or the current partner to place the subscriptions under a direct billing account.
   • Only direct Enterprise Agreement transfers to an Azure plan under an MPA are supported; indirect EA transfers are not.
7. Handling billing cadence (yearly vs month-to-month)
   • Once subscriptions are under a direct billing account (for example, a Microsoft Customer Agreement), the billing cadence and payment terms are governed by that agreement. Month-to-month usage-based billing is standard for Azure consumption under such accounts.
   • Any charges after the time of transfer appear on the new account’s invoice; charges before transfer remain on the previous account’s invoice. Some pre-transfer usage reported after the transfer may appear on the new invoice section.
8. How to get Microsoft involved if the partner cannot or will not cooperate
   • For CSP-based subscriptions, the formal transfer path is via the partner and Microsoft support. If the current partner is uncooperative, the company can:
     • Engage a new CSP partner and have them work with Microsoft to move the subscriptions under their Azure plan, then later work with Microsoft to move to direct if desired.
     • Open a billing/support request with Microsoft from any existing direct billing account (if one exists) and request guidance on moving CSP subscriptions to direct.
9. After accepting billing ownership
   • After the company becomes the billing owner of the subscriptions:
     • Review and update Azure role assignments (subscription owners, contributors, etc.).
     • Rotate or update credentials associated with services (management certificates, storage access keys, VM remote access credentials).
     • If still working with any partner, update the partner ID on the subscription as needed.

In summary, to move to month-to-month direct billing, the company must coordinate a billing ownership transfer of the Azure subscriptions away from the current CSP partner to a direct billing account, ensure subscriptions are active and in the correct tenant, then clean up RBAC and partner access once the transfer is complete.

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References:

• Transfer Azure product billing ownership to your Microsoft Partner Agreement (MPA)
• Additional information
• Transfer subscriptions under an Azure plan from one partner to another
• Transfer a customer's Azure subscriptions to a different partner
• Transfer billing ownership of an MOSP Azure subscription to another account