Azure - Pricing

Azure - Pricing

Please note that the pricing model may change in a future Azure pricing model. Data will be collected on the campus surcharge and the actual costs to campus over the next fiscal year. As a result, the surcharge may be increased or decreased in the future based on the actual costs of providing Azure to campus.

Insight, the campus reseller for Azure, discounts Azure retail pricing  ~3.5% as part of the Internet2 agreement with Microsoft. UW-Madison Public Cloud applies a 3.5% overhead surcharge to the Insight rate to recover a portion of its costs. The net cost to campus customers will be approximately Microsoft's published rates for Azure.
UW originally had a discount of 15% but that agreement has since been discontinued.

Azure - Free Tier

As part of our enterprise agreement the UW is not eligible for the free tier of services.  Cloud vendors do not normally offer a free tier to their enterprise customers.

Using Research Grant Funding for Cloud Services


Cloud computing (AWS, Azure or GCP) through UW contracts can be funded by research grant funds using a DoIT Number, like other IT expenditures (DoIT Numbers - Overview)

Customers are responsible for ensuring that any grant funds used to pay for public cloud services is done in accordance with Research and Sponsored Programs (RSP) policy and federal requirements (2 CFR 200 Subpart E). Basic guidance on allowable direct costs can be found here. It is recommended that any customers with questions about using a grant to pay for cloud computing contact RSP for guidance

For customers planning or expecting to use credits/grants from a Public Cloud Provider, please indicate so on your account request, and contact the Public Cloud team to ensure those credits are deployed appropriately to your account.

Pilot Program - Reduced F&A Charges for Cloud Computing Expenses on Research Grants

UW-Madison is conducting a 2-year pilot that includes a reduced F&A rate for cloud computing expenses on research grants. This reduction applies only to new proposals and awards as of July 1, 2022. For questions about whether your funding source is eligible for this F&A reduction, contact RSP at:

  1. Contact your departmental grant/financial administrator or RSP to obtain a specific Project ID for cloud computing expenses that will be charged the reduced F&A rate. This will be a 7-character string, with letters and numbers, for example, AAA1234 and should include "Cloud Computing" in the Description field. Ensure you have the correct Project ID as changes may not be possible later.
  2. Ensure that you have a DoIT Number tied to the specific financial account, including the Project ID
  3. Sign up for a new UW Public Cloud account, indicate you are eligible for this reduced F&A rate, and enter your Cloud Computing Project ID and the associated DoIT Number in the form.

NOTE: if you are a researcher in the School of Medicine and Public Health and want to use the reduced F&A-eligible funding for computing on the Azure-based Platform X, contact for more information.


If you have any questions, please Contact the Public Cloud Team

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Commonly Referenced Docs:

UW Madison Public Cloud Team Events Online Learning Classes for Cloud Vendors What Data Elements are allowed in the Public Cloud

Keywordsazure price pricing retail cost costs rate rates   Doc ID69212
OwnerSteve T.GroupPublic Cloud
Created2016-12-05 13:59:23Updated2022-08-15 07:41:58
SitesPublic Cloud
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