What are Azure Reservations?
Azure Reservations help you save money by committing to one-year or three-year plans for multiple products. Committing allows you to get a discount on the resources you use. Reservations can significantly reduce your resource costs by up to 72% from pay-as-you-go prices. Reservations provide a billing discount and don’t affect the runtime state of your resources. After you purchase a reservation, the discount automatically applies to matching resources.
You can pay for a reservation up front or monthly. The total cost of up-front and monthly reservations is the same and you don’t pay any extra fees when you choose to pay monthly.
How to save on compute?
When you declare a Reserved Virtual Machine Instances reservations you choose Compute sizes.
AKS example
For example you can reserve sizes of compute that you are using for your AKS cluster. So you choose for example 4 same sizes of your current AKS cluster and making reservations for one or three years. Azure gives you a year budget to resign from reservation or rearange them. So for example you decide that your cluster will be smaller with use of 3 bigger same sizes. So you can change your reservation to different sizes. Maybe you would need a resize and add another compute to your cluster so then you can add additional sizes to reservations. Your cluster now will have 5 same sizes with reservations and costs savings.
VMs example
For example you have ten the same machine sizes for your VMs. You decide to make reservations for ten sizes for three years. When one of the VMs is no longer in use and will be removed. You can use this size in a new VM or resign from one reservation of such size.
Reservations types
Compute costs
- Reserved Virtual Machine Instance – A reservation only covers the virtual machine and cloud services compute costs. It doesn’t cover additional software, Windows, networking, or storage charges.
- Azure SQL Database – A reservation only covers the compute costs. It doesn’t cover software license, networking, or storage charges. For the General Purpose service tier, reservations are also available to cover compute costs associated with the zone-redundancy add-on.
- Azure SQL Managed Instance – A reservation only covers the compute costs. It doesn’t cover software license, networking, or storage charges. Reservations are also available to cover compute costs associated with the zone-redundancy add-on.
- Azure Database for MySQL – Only the compute costs are included with a reservation. A reservation doesn’t cover software, networking, or storage charges associated with the MySQL Database server.
- Azure Database for PostgreSQL – Only the compute costs are included with a reservation. A reservation doesn’t cover software, networking, or storage charges associated with the PostgreSQL Database servers.
- Azure Cache for Redis – Only the compute costs are included with a reservation. A reservation doesn’t cover networking or storage charges associated with the Redis cache instances.
- Azure Dedicated Host – Only the compute costs are included with the Dedicated host.
Storage capacity
- Azure Blob storage reserved capacity – A reservation covers storage capacity for Blob storage and Azure Data Lake Gen2 storage. The reservation doesn’t cover bandwidth or transaction rates.
- Azure Files reserved capacity – A reservation covers storage capacity for Azure Files. Reservations for hot and cool tiers don’t cover bandwidth or transaction rates.
Other types
- Azure Cosmos DB reserved capacity – A reservation covers throughput provisioned for your resources. It doesn’t cover the storage and networking charges.
- Azure Data Factory data flows – A reservation covers integration runtime cost for the compute type and number of cores that you buy.
- Azure Synapse Analytics – A reservation covers cDWU usage. It doesn’t cover storage or networking charges associated with the Azure Synapse Analytics usage.
- Azure Databricks – A reservation covers only the DBU usage. Other charges, such as compute, storage, and networking, are applied separately.
- App Service stamp fee – A reservation covers stamp usage. It doesn’t apply to workers, so any other resources associated with the stamp are charged separately.
- Azure Data Explorer – A reservation covers the markup charges. A reservation doesn’t apply to compute, networking, or storage charges associated with the clusters.
- Azure Disk Storage reservations – A reservation only covers premium SSDs of P30 size or greater. It doesn’t cover any other disk types or sizes smaller than P30.
- Azure Backup Storage reserved capacity – A capacity reservation lowers storage costs of backup data in a Recovery Services Vault.
- Azure NetApp Files – A capacity reservation covers matching capacity pools in the selected service level and region. When using capacity pools configured with cool access, only “hot” tier consumption is covered by the reservation benefit.
Software plans:
- SUSE Linux – A reservation covers the software plan costs. The discounts apply only to SUSE meters and not to the virtual machine usage.
- Red Hat Plans (plans and renewal are temporarily unavailable) – A reservation covers the software plan costs. The discounts apply only to RedHat meters and not to the virtual machine usage.
- Azure Red Hat OpenShift – A reservation applies to the OpenShift costs, not to Azure infrastructure costs.
Microsoft Azure materials:
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