Questions on Azure Databricks prepurchase plan

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://video2.skills-academy.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://video2.skills-academy.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.

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