OSPA – Online Service Premium Agreement, is an agreement designed for Enterprise customers who purchase Microsoft Azure in China, the Enterprise customers required to have registered legal entity in China and commit annual amount for Azure services.
OSPA is a 3-year contractual agreement with China Enterprise Customers and 21V Blue Cloud Network Technology Co, Ltd. Therefore, customer will sign the contract agreement with 21V Blue Cloud from legal perspective. We use “21V” as the represent term in this guidance for consistent understanding.
Indirect OSPA - is buying OSPA (Online Service Premium Agreement) through a Microsoft Azure Indirect OSPA Partner. Contract been signed between 21V Blue Cloud Network Technology Co, Ltd*, Indirect Partner, and customer (an Enterprise legal entity registered in mainland China). Partner as interface for customer to provide services & billing support.
In OSPA contractual agreement, Enterprise customers required to commit and prepaid minimal amount of 150,000RMB as initial annual commitment, prior to each annual term end, they have the option to true up or true down their next year commitment.
The below 6 elements are highly summary and point out the essentials of OSPA:
|Pricing||Overage||End of Contract Term|
Indirect OSPA has similar agreement package, except pricing and order form will be provide and assist to submit by indirect partner.
1. Contract Structure
Standard OSPA Contract is having Three-Year’s terms, start with minimum 150,000 RMB initial annual commitment. This contract is only for Microsoft Azure service.
The Contract Package including OSPA Agreement T&C, Order Form, Contact Information Sheet and Signature Form. These Four contract material customer must sign.
OSPA customer need to place their Monetary Commitment order annually. The initial Y1 Monetary Commitment order have the minimum 150,000RMB (without tax) requirement for all new OSPA customers. For the Y2 and Y3 annual order, customers have the options to true up or true down prior their current term end. Moreover, when customers’ monetary commitment is running low, they can place additional order at any time.
All the OSPA payment must pay through company wire transfer or check. Customer have 30 days standard payment term. 21V will issue VAT invoice to customer once payment complete.
Indirect OSPA customer pay directly to partner. All terms and payment methods will be suggested by partner. Partner will issue VAT invoice to customer once payment complete.
The Azure New Pricing took effective on 1st Feb 2017, from 1st Feb 2017, the new OSPA customer enjoys the same price as OSSA customers and they can check the price details on our website. However, we still have some customized pricing benefit only provide to OSPA such as Compute Pre-Purchase and IoT SKU. OSPA customers can contact their MSFT Account Team to get more details for these benefits.
For Indirect OSPA, all pricing will be suggested by Indirect partner. 21 Vianet and Microsoft won’t provide or engage in customer pricing or billing.
The customer utilized usage charges will be deducted from their Monetary Commitment term’s balance at their commitment rates until the commitment balance has been exhausted. At that point, the customer will be charged as overage. Prior to Overage happened, customers will receive the usage notification sent from system automatically at 50%.75%.90% and 100%. Once customer receive those email notifications, they can have the prediction and get ready to overage.
The services rates charged during Overage Period is as the same as the rates charged in the commitment period. But customer need to clearly know that their overage billing payment cycle is monthly, meaning once customer have the overage, they should pay monthly.
The standard overage payment term is 30 days as well. Customer will receive the VAT invoice in next month sent from 21V.
If customers don’t want to pay overage monthly, they can place an Additional order to top up their Monetary Commitment balance.
In Indirect OSPA, Customers’ overage will be informed and charged by partner. VAT invoice will be provided by partner after customer paid. The overage service unit price will be the same as the commitment service unit price. Please consult your partner for payment terms, frequency, and methods.
6. End of Contract Term
If customers want to continue use the services once the Three-year contract term end, they need to sign a new Three-year OSPA contract. Or customers have the option to terminate. Although customer signs the new Three-year OSPA contract, their services can transfer seamless to their new agreement to continue using the service without any impact or re-rebuild efforts.
Customer can contact their MSFT Account Team for contract details, any regulation or law terms, customer can refer to Azure Legal Terms References.
In Indirect OSPA, partner will assist customer during the contract signing process and certain customer related information and Azure services intent to purchase please confirm with partner.