Microsoft
Microsoftncdlloyd2070 John_Neithercott the year 2 onwards statement refers to the SQL server ESUs. You would need to purchase the year 1 ESUs through the Volume Licensing Service Center. You'll pay for year 2 ESUs through Arc which will be reflected on the Azure bill. Hope this answers the question.
More information here Extended Security Updates for SQL Server and Windows Server | Microsoft
On Azure: Customers who migrate workloads to Azure will have access to Extended Security Updates for SQL Server 2012, and Windows Server 2012 and 2012 R2 for three years after the End of Support dates for no additional charge above the cost of running the virtual machine.
On-premises and in hosted environments: Eligible customers will be able to purchase Extended Security Updates. Licenses are sold in 2 core packs for SQL Server and 16 core packs for Windows Server 2012, and are priced as below:
Year 1: 100% of full license price annually*
Year 2: 100% of full license price annually
Year 3: 100% of full license price annually
*SQL Server 2012 Year 1 ESUs were 75% of the full license price
Can I onboard later and buy just Year 2 of 2012 Extended Security Updates?
Customers who require 2012 outside Azure (where Extended Security Updates are available at no additional charge) can onboard on Year 2 of 2012 Extended Security Updates. However, if an organization did not purchase the first year of Extended Security Updates coverage, they will need to purchase both Year 1 and Year 2 Extended Security Updates. Similarly, if an organization onboards only on Year 3, they will need to purchase all three years of Extended Security Updates.