HubStor Inc.

How to Interpret HubStor Invoices

First, thank you for being a HubStor customer!

This article shows you how to dissect and reverse engineer the numbers in a HubStor invoice. Before we walk through a few examples, here are some essentials you need to know:
  1. HubStor invoices are posted to the Billing app in the Admin Portal of your tenant. They are also emailed to your billing contact(s).
  2. To verify the HubStor amounts in any invoice, you'll need two key pieces of information which are the following:
    1. the HubStor rate card defined in Schedule A of your Master Subscription Agreement (MSA), and
    2. the HubStor invoice. In the HubStor invoice, you'll be working with figures in the 'Invoice Summary' found on page one, as well as the foundation and search rollup amounts from the 'COGS Details' section of the invoice which starts on page four or page five.
  3. COGS is an accounting acronym that stands for Costs of Good Sold. COGS = the metered Azure usage for the billing period. HubStor's rate card percentages are calculated against the rollup amounts in the COGS summary.
  4. In the COGS details, it is important to note that there are two rollups. One is under something that includes foundation in the name, and the other rollup includes search in the name. You will only need the top-level rollup amounts for your calculations.
Refresher on retail math:
Before jumping into practical examples of HubStor invoices, please consider the following:
  1. If a business sells a widget for $400 and the cost of materials to make that widget is $100, then we can say that the business has a 75% gross margin or, alternatively, a 300% markup on costs.

Invoice Example 1: HubStor Hosted

The following is an example of how to interpret an invoice for a HubStor tenant that is hosted under HubStor:

Page one of the invoice should have an invoice summary that looks something like this:

We can see there are two separate charges: one for foundation, the other for search.

To understand the amounts for each, we first need to pull the COGS rollup amounts for each resource group which are found in the COGS details section on page four/five. 

As highlighted in green below, we can see the rollup totals for both foundation and search. Note these figures.


The foundation and search charges require separate calculations since each have their own rate card in Schedule A.

As of October 2019, HubStor no longer markups up storage activity and egress costs. See announcement here. Therefore, you will need to deduct the following line item amounts from the foundation COGS total:
  1. Under 'Tiered Block Blob':
    1. anything with "operations" in the name
    2. anything with "data retrieval" in the name
    3. anything with "early delete" in the name
  2. Under 'Bandwidth':
    1. Geo-replication data transfer (if using GRS or RA-GRS), and
    2. Data transfer out
Next, do the math with the COGS figures against the total amounts on page one respectively to understand the percentages. 
  1. Divide the COGS amount by the HubStor Foundation Charges amount = % COGS
  2. Subtract the '% COGS' from 100% = % HubStor Gross Margin
To illustrate using the figures for foundation in this example: 
  1. 1,453.52  / 5,037.90 = 28.8% COGS (which means a 71.2% HubStor Gross Margin)
To illustrate using the figures for search in this example: 
  1. 116.25 / 435.94 = 26.7% COGS (which means a 73.3% HubStor Gross Margin)
To confirm the invoice amounts are correct, you need to solve for HubStor's gross margin (or markup) percentage for both foundation and search amounts. The gross margin percentage you get using the invoice numbers should align with the gross margin percentage in the rate cards found in Schedule A of your HubStor MSA. HubStor uses the margin percentage that aligns to the actual billable foundation COGS amount (the amount of COGS after exempting storage operations and egress activity amounts).

Invoice Example 2: Customer Hosted

The following is an example of how to interpret an invoice for a HubStor tenant that is customer hosted:

Page one of the invoice should have an invoice summary that looks something like this:

As in the prior example, we can see there are two separate charges: one for foundation, the other for search. However, what's different in this example is the 'Self-Hosting COGS Credit' (more on this later). To understand the amounts for foundation and search, we need to pull the COGS rollup amounts for each resource group which are found in the COGS details section on page four/five. 

As highlighted in green below, we can see the rollup totals for both foundation and search. Note these figures.

The foundation and search charges require separate calculations since each have their own rate card in Schedule A.

As of October 2019, HubStor no longer markups up storage activity and egress costs. See announcement here. Therefore, you will need to deduct the following line item amounts from the foundation COGS total:
  1. Under 'Tiered Block Blob':
    1. anything with "operations" in the name
    2. anything with "data retrieval" in the name
    3. anything with "early delete" in the name
  2. Under 'Bandwidth':
    1. Geo-replication data transfer (if using GRS or RA-GRS), and
    2. Data transfer out
Next, do the math with the COGS figures against the total amounts on page one respectively to understand the percentages. 
  1. Divide the COGS amount by the HubStor Foundation Charges amount = % COGS
  2. Subtract the '% COGS' from 100% = % HubStor Gross Margin
To illustrate using the figures for foundation in this example: 
  1. 1,101.43  / 3,858.31 = 28.5% COGS (which means a 71.5% HubStor Gross Margin)
To illustrate using the figures for search in this example: 
  1. 207.16 / 466.11 = 44.4% COGS (which means a 55.6% HubStor Gross Margin)
In addition, the sum of foundation and search COGS should equal the 'Self-Hosting COGS Credit' amount in the invoice summary. If you are hosting HubStor in your own account, then the cloud costs are used to calculate the HubStor amounts, but then substracted from the amount owing since you are paying for the cloud consumption yourself.

To confirm the invoice amounts are correct, you need to solve for HubStor's gross margin (or markup) percentage for both foundation and search amounts. The gross margin percentage you get using the invoice numbers should align with the gross margin percentage in the rate cards found in Schedule A of your HubStor MSA.  HubStor uses the margin percentage that aligns to the actual billable foundation COGS amount (the amount of COGS after exempting storage operations and egress activity amounts).

Invoice Example 2: HubStor Hosted with Enterprise Agreement (Prepay)

An Enterprise Agreement (EA) involves a prepurchase of HubStor credits in exchange for a discount.

Depending on how your HubStor tenant is hosted, your invoice will be one of the two prior examples. However, in an EA scenario, the invoice summary will show a remaining credit balance, as in the following example

The total amount owing is zero so long as their's a sufficient balance (the 'Hub Credit') to cover the usage charges in the given invoice. Once the charges exceed the remaining Hub Credit balance, there will be an amount owing on the invoice.

Should you have any questions about an invoice, please direct them to accounts@hubstor.net.
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