Margin Management

Azure NCE uses a Price Rated (PR) model (whereas the Azure CSP Legacy product uses a Cost Rated model). There are no upfront margins. The indirect provider (e.g. Ingram Micro) will receive Partner Earned Credit (PEC) if the end customer retains AOBO (Administrator on Behalf Of) status for the provider. The indirect provider can then share the received PEC with the indirect reseller.

Each Cloud Marketplace has its own markdown for reseller costs based on their own business needs. The reseller costs are calculated as a markdown from the end customer costs. For example, if the end customer cost is 100 and there is a markdown of 7%, then the reseller's cost will be 93.

For further details on price management, refer to the CloudBlue Commerce Configuration Guide.