Partner Earned Credit (PEC), Administration On Behalf Of (AOBO) and Azure Lighthouse

A partner "earns" credit (PEC) by default if the following conditions are met:

• The partner has the billing relationship with Microsoft.

• The partner provisions the subscription.

• The partner has 24x7 operations and management control of the Azure resources on the subscription demonstrated by one of the following access levels:

  • Admin On Behalf Of (AOBO)

  • Azure Lighthouse (ADRM)

  • Guest Access or Service Principle (RBAC)

The customer election mechanism to grant the Back End Margin is visible and changeable only by the customer. All newly provisioned subscriptions (e.g. Sales Orders) will have AOBO set to the provider, and indirect reseller if applicable. It will be up to the customer to remove/change AOBO post-provisioning.

The Customer may update its AOBO setting on a subscription every calendar day, and it may be possible to control it in a granular way, resource by resource.

To obtain information on the roles and permissions eligible to earn PEC refer to the Microsoft Partner Center documentation.

When the direct billed NCE provider receives its monthly cadence Invoice from Microsoft, they will see that the net amount owing is calculated as the invoiced NCE Azure Consumption minus the Partner Earned Credit.

Azure Lighthouse

Azure Lighthouse provides capabilities for cross customer management at scale for Microsoft partners to differentiate and benefit from greater efficiency and automation.