What is MACC? How does it work inside Microsoft agreements?

• MACC = a contractual spend commitment tied to your Azure billing account (on Enterprise Agreement or Microsoft Customer Agreement). You can see the commitment term, remaining balance, and what counts directly in the Azure portal and APIs.
• What can count:
  1. Azure consumption (eligible services against your billing account), and
  2. Eligible third-party purchases from the Microsoft commercial marketplace (details below).
     Marketplace purchases that carry the Azure benefit eligible badge can count 100% toward MACC (often via private offers).
• How it’s transacted: Eligible Marketplace purchases must be bought through the Azure portal using an Azure subscription linked to your company’s agreement. Otherwise they may not decrement MACC.

Key takeaway: MACC is not a general Microsoft spend pot. It’s specific to Azure and MACC-eligible Marketplace spend tied to the correct billing account.

Hidden pitfalls and gotchas that create commitment traps

1. Not all Marketplace offers count. To contribute to MACC, an offer must be Azure benefit eligible (you’ll see the badge), and the publisher’s offer must be enrolled as MACC-eligible.
2. Wrong ISV status. The offer types that can be MACC-eligible (SaaS, Azure Application, Container, VM) generally require Azure IP co-sell eligible status. BYOL or free offers aren’t transactable and don’t meet MACC requirements.
3. Purchased in the wrong place. Buying via a vendor’s website or a non-linked subscription won’t decrement MACC. Use Azure portal with the right billing account/subscription.
4. Timing surprises. MACC decrement timing follows Microsoft’s Marketplace billing/settlement process—customers often expect instant decrement; instead, check Microsoft’s MACC FAQ for visibility windows.
5. Cluster scope & architecture drift. You forecast based on today’s architecture; then platform changes (optimizations, rightsizing, FinOps wins) reduce Azure burn, leaving you short against a fixed MACC.
6. Overestimating Marketplace burn-down. Late-stage checks reveal a key ISV isn’t MACC-eligible or needs a different SKU or sales motion (e.g., private offer) to count.
7. Shortfall liability. If you don’t hit the commitment by term end, the contract typically requires a true-up/shortfall payment. This means the discount becomes very expensive. You can track your Azure standing with our innovative LicenseQ Hub tool, which helps you uncover savings opportunities and manage your licenses proactively. Find out more on our LicenseQ Hub page.

Trap pattern we see: Over-optimistic Azure forecasts + Marketplace assumptions + eligibility gaps = scramble in the last quarter.

Which ISVs qualify? How do you ensure your spend counts?

MACC eligibility checklist

Use this MACC eligibility checklist before you bank on Marketplace spend:

• Offer type: The ISV product is listed in the commercial marketplace as SaaS, Azure Application, Azure Container, or Azure Virtual Machine (these are the offer types that can be enrolled for MACC).
• Co-sell status: The offer (and publisher) has Azure IP co-sell eligible status (a prerequisite for MACC).
• Badge: The listing shows Azure benefit eligible. (If not visible, ask the ISV/Microsoft to confirm MACC enrollment.)
• Transactable & route: You will purchase through the Azure portal on a subscription tied to your billing account/contract (EA/MCA).
• Commercial motion: Use a private offer (or multiparty private offer) when you need custom pricing/co-term. These also explicitly state MACC eligibility and typically count 100% to your commitment.
• Paper trail: Capture the Offer ID, subscription ID, and private-offer terms in your internal tracker so Finance can verify MACC decrement later.

Sanity check: Ask Microsoft/the ISV to confirm in writing that the private offer is MACC-eligible for your billing account and commitment term, and when/where decrement will show.

Alternatives to overcommitting on Azure (and staying flexible)

If Microsoft is pushing an aggressive MACC, consider these options to protect flexibility while preserving discounts:

A. Commit low, plan high (with staged ramps)

Negotiate a ramped MACC that aligns to realistic deployment phases. Preserve the option to scale with addenda rather than locking in day-one. (Track actuals monthly in the Azure portal.)

B. Mix discount mechanisms

Use Azure Savings Plans / Reservations for unit-rate savings on steady workloads, and keep MACC modest so you don’t double-bind yourself (rate commitments and dollar commitments).

General tactic: Confirm the balance that fits your estate.

**C. Shift more third-party spend to Marketplace, **but only when it’s MACC-eligible and commercially competitive. Use private offers to co-term and negotiate.

D. Add guardrails in the paper

Document eligibility assumptions (ISV, offer ID, “Azure benefit eligible” status, purchase route) in your renewal notes/SOWs. If Microsoft’s pitch depends on Marketplace burn-down, make that explicit.

E. Build a MACC burn board (FinOps)

Operationalize a monthly review: commitment, remaining balance, forecast, Marketplace pipeline (with offer IDs), and risk flags. Use Microsoft’s tracking views/API to reconcile.

F. Keep an exit lane

If you must increase MACC to access discounts, try to pair it with term flexibility (shorter initial term/ramp) or price holds without an oversized commitment.

G. Try a different model

Many companies commit to a MACC contract for the incentives (i.e. discount). If discount is your guiding principle, then you should check your alternatives that don’t require a commitment, like the CSP program. Many Microsoft partners are able to offer interesting terms for Azure in a CSP contract.

Quick FAQ

Is MACC only for MCA customers?

No. You can have a MACC under EA or MCA billing accounts. You can track both in the Azure portal.

Do all Marketplace purchases count 1:1 to MACC?

Only Azure benefit-eligible purchases (often via private offers) count toward your commitment. Check the badge and terms.

What makes an ISV offer MACC-eligible?

The offer must be transactable in the marketplace and typically requires Azure IP co-sell eligible status. Free/BYOL offers aren’t eligible.

How do I know purchases will decrement my MACC?

Buy through the Azure portal on a subscription linked to your contract; verify the Azure benefit eligible badge and keep the private offer paperwork. See Microsoft’s MACC FAQ for timing.

A simple decision framework before you sign

1. Baseline the truth: Current 12-month Azure run-rate, committed rate savings (Reservations/Savings Plans), and likely architectural changes.
2. Quantify Marketplace burn-down: Which ISV purchases are MACC-eligible (confirmed), at what value, and when?
3. Model three scenarios: Conservative, expected, stretch. Commit to the conservative and keep growth as options.
4. Paper the assumptions: Eligibility, purchasing route, and decrement timing in writing with your sellers/ISVs.
5. Instrument it: Turn on monthly MACC tracking and executive reporting so surprises show up early, not in Q4.