Tell HN: Microsoft abruptly pulls plug on startup lifeline program | Hacker News Reader

Tell HN: Microsoft abruptly pulls plug on startup lifeline program

11 pointsphren0logy6 comments

Microsoft had, until recently, a very generous program of Azure credit for startups. Starting with around $5k in Azure credit, companies could re-apply for increments of $25k up to a total of $150k.

Based on the existence of this program, we did a round of friends-and-family fundraising and developed a business plan. We built a prototype in Azure. Microsoft reps were responsive and helpful. Things were looking good.

Then, unceremoniously and with about 48 hours of notice (much of which was the weekend), MS closed the program. Despite having submitted a request for the next funding increment before the program closed, they are declining to offer any more credit (although they are allowing us to use credit previously granted).

To be clear: it's their money and their program. I'm not disputing that they are totally within their rights to make this change. But the timing and abrupt nature have left us, and I suspect more than a few others, in the lurch. As intended by their program, our prototype product is highly Azure-centric, and it will be challenging to find a path forward.

This is simply a word of caution: I would be wary of agreements with Microsoft.

For those alarmed, I still seem to have access to all the credits awarded so far. I tried to investigate it further but every post was returning a 404.

It sounds like they have stopped taking applications, I do not think they have suddenly shut down the program over the weekend.

(Please correct me if I’m wrong OP)

That's correct, any existing credit can still be used. Hopefully, the balance and burn-rate give others more of a runway than we have (which based on our balance when this dropped is more like a brick wall at this point).

As the name suggests I'm a journalist and am checking this with Microsoft but if you're free to talk about this I'm on Signal at iainthomson.60

> I would be wary of agreements with Microsoft.

I'm unclear what part of their agreement with you was broken. Did they promise future credits, or the continuation of the program? You already said that you retained access to all credits that were approved. It sounds like you built a plan based on a possibility, not a legal contract, but if that isn't a fair take on it, please do elaborate.

There was little notice of the changes to be made, and their website formerly boasted of the path to unlock more credits within the year-long timeframe. It's Microsoft's money after all, with no guarantee, but the timing of it all kind of hurt us, given that we've built our platform on Azure in order to get more credits from them.

I addressed this directly:

> To be clear: it's their money and their program. I'm not disputing that they are totally within their rights to make this change. But the timing and abrupt nature have left us, and I suspect more than a few others, in the lurch.

But it’s fair to say we based our spending decisions not on the existence of the program, but acceptance into the program.

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