This article provides guidance to help customers understand the Azure Customer Solution provision in the Azure Product Terms. The Azure Customer Solution terms are for customers like Software Development Companies (SDCs) who use Azure to build their own solutions. This article is not designed to introduce new terms or supplement existing ones and is not part of your volume licensing agreement with Microsoft. It is intended to provide insight into this topic and the intent of the Azure Customer Solution to help you ensure your solution is compliant.

This document applies to the use of Microsoft Azure Services under the Azure Customer Solution clause in the Product Terms for Microsoft Azure.

The Azure Customer Solution clause in the Product Terms for Microsoft Azure is intended to enable organizations like Software Development Companies (SDCs) (the “Customer”) to purchase Microsoft Azure Services through a commercial licensing agreement to develop and deliver unified solutions, such as a Software as a Service (SaaS) applications, that they sell to their end customers. To be compliant, your solution must add primary and significant functionality to the Microsoft Azure Services, as per the following definition of “Customer Solution” in the Product Terms:

Customer Solution means any application that the Customer makes available to its end users consisting of Customer’s applications and the Microsoft Azure Services, whereby Customer’s application adds primary and significant functionality and is not primarily a substitute for the Microsoft Azure Services. Customer applications that only provide billing, license management, and/or infrastructure services (e.g., virtual machines, containers, storage, or management for such infrastructure services) do not constitute “primary and significant functionality.”

• The solution is the primary driver for the end customer’s purchase decision. The fact that it runs on Azure may be a secondary consideration, but more likely, the cloud platform the solution runs on is irrelevant or unknown to the end customers.
• Azure costs make up less than half of the cost charged to the end customer for the solution.
• Individual meters and meter prices aren’t exposed to the end customer.
• Individual Azure services are used to host solutions that serve multiple end customers (for example, a virtual machine hosts an application serving multiple customers).

The Azure Customer Solution is not appropriate if you want to resell Microsoft Azure services—including with managed services, cost optimization, or enhanced support—without adding primary and significant functionality. If you are interested in reselling Azure Services with value-added services and support, evaluate the Cloud Solution Provider (CSP) program. 

You may create and maintain a Customer Solution using model inferencing APIs for Microsoft Azure AI Foundry Models sold directly by Azure. 
The Customer Solution requirement still applies to Microsoft Azure AI Foundry Models sold directly by Azure. Your Customer Solution should meet each of the following criteria:

1. Resale is not allowed. You cannot simply resell the model inferencing APIs. Your use of the model inferencing APIs is to combine them with your own “primary” and “significant” contributions or functionality in your Customer Solution.
2. Not merely a substitute. Your solution cannot merely provide raw, thinly wrapped, or lightly processed outputs from the model inferencing APIs. 
3. Either embed or adapt the APIs. Your solution must either embed the model inferencing APIs within your applications, tools, and workflows, or adapt the model inferencing APIs by substantially altering their output either through technology IP, data, context, or customizations unique your platform.
4. Your contribution is core. Your contribution to Customer Solution represents the primary functionality driving the end-customer’s purchase decision. Any charges for the model inferencing APIs that you pass along to your end customers should make up less than half of the total cost of the solution to the end-customer.
5. Solely for your platform. While you may permit your Customer Solution as a whole to be redistributed to downstream entities, the model inferencing APIs must remain within the confines of your platform and may not be distributed separately.

You may permit third parties to access and use Azure Services solely in connection with the use of your Customer Solution. You are responsible for: 
•    ensuring that third parties who access, use or distribute your solution comply with the Product Terms, the terms and conditions of your licensing agreement, and all applicable laws; and
•    obtaining any necessary licenses related to Standards in a Customer Solution.

Each scenario is unique, and you should evaluate your solution based on the Product Terms. Here are some example scenarios and whether they would be allowed under the Azure Customer Solution clause.

See FAQ page