FAQ: Different pricing in year 1 vs year 2 for transactable SaaS offer

I think additional clarification would be that sellers may set a different price for a 2-year term than they charge for a 1-year term for the same plan. However, the price would be fixed for the duration of the subscription if a 2-year or 3-year commitment is made.

Sellers can https://learn.microsoft.com/en-us/partner-center/marketplace/isv-customer for their Azure customers to provide a different price-points in year two when a 1-year subscription renews.

**Note the customer must accept the terms of the offer(s) prior to their subscription renewal date when the new price is desired to take effect. This is great for pre-negotiated renewals as well when you wish to maintain uninterrupted SaaS product service for your customer, but need them to agree to new terms & conditions or modify the overall pricing for the next subscription term. If no private offer is accepted, the subscription may either expire at end of term or auto-renew at the public price-point for that plan. Customers control whether their subscription auto-renews or not, but sellers have visibility to the status for each of their customers. See https://learn.microsoft.com/en-us/partner-center/marketplace/isv-customer-faq