A Microsoft offering that enables tracking of cloud usage and expenditures for Azure and other cloud providers.
Azure credits can be used to pay for eligible Azure services (VMs, storage, databases, networking, AI services, etc.) within the subscription that the credits are attached to. How to proceed depends on how the credits were granted.
- If the credits are from Microsoft for Startups
- Credits must be activated within 90 days of accepting the program agreement; otherwise, the offer expires and reapplication is required.
- Once activated, credits are valid for up to two years.
- To activate and use them:
- Sign in to the Azure portal with the same Microsoft Account (MSA) used for the Microsoft for Startups registration.
- Complete the 3‑step Azure account setup (profile, address, payment information) if not already done.
- After activation, create or use subscriptions under the billing account where the sponsorship credits are allocated. All subscriptions under that billing account can consume the credits.
- It can take several hours (up to about a day) for the credit balance to appear. Check under Cost Management + Billing → Payment methods to confirm sponsorship.
- When credits are consumed, subscriptions automatically move to pay‑as‑you‑go billing.
- If the credits are from Microsoft AI Cloud Partner Program (Action Pack / legacy Silver/Gold)
- These credits are redeemed as Azure sponsorships and always create a new Azure subscription; they cannot be applied to an existing pay‑as‑you‑go subscription.
- To activate:
- In Partner Center, go to Benefits → Azure credits.
- Find the Azure credits benefit with status Not Redeemed and open it.
- On Activate Benefits, in Manage user assignment, assign one user from the organization’s Microsoft Entra ID tenant (no guest/external users).
- Use Send link to users to copy the activation link and send it to the assigned user.
- The user opens the link and completes activation, which creates a new Azure subscription backed by the credits.
- To actually use the credits, deploy resources (VMs, storage, etc.) into this new sponsorship subscription. If resources exist in another subscription, move them to the new subscription to consume the sponsorship credits.
- General usage and monitoring
- Credits are applied automatically to eligible usage in the associated subscription(s); no extra step is needed once activation and subscription setup are complete.
- To avoid unexpected charges once credits are nearly consumed or expired, use Cost Management + Billing in the Azure portal to:
- Set budgets and alerts for the subscription.
- Monitor current and forecasted spend.
For urgent billing or cost concerns (for example, if charges appear higher than expected), create a free Billing support request from the Azure portal so a billing engineer can review the subscription and charges.
References:
- Use your Azure credits
- Activate Azure Credits
- Microsoft for Startups – Frequently Asked Questions
- Microsoft for Startups – Frequently Asked Questions (FAQ)
- Retroactive billing update inflated 20-day charges from ~$210 to $1,683 CAD without prior notification - Microsoft Q&A
- Request for Refund – Accidental Charges in Pay-As-You-Go Subscription - Microsoft Q&A
- I need help with bill waiver on my subscription but cannot open a support ticket. - Microsoft Q&A
- Fraud Charges - Microsoft Q&A