Azure Savings Plan for Compute | Microsoft Azure (2024)

Frequently asked questions

|

  • Azure savings plan for compute is a flexible pricing model that provides savings up to 65 percent off pay-as-you-go pricing when you commit to spend a fixed hourly amount on compute services for one or three years.

  • In addition to realizing significant cost savings that free up budget for new projects, Azure savings plans for compute optimizes savings automatically to help you modernize your workloads and continue saving as your needs change over time.

  • In the Azure portal, review yourAzure Advisor recommendationsand thenadd a savings plan, or contact anAzure sales specialistor partner. Savings plans are quick and easy to purchase, with flexible plan options to fit your needs.

    • Choose a one-year or three-year term.
    • Set your optimal hourly commitment amount by referring topersonalized recommendationsbased on your recent usage.
    • Enjoy flexible payment options—pay all upfront or monthly at no extra cost.
    • Streamline savings by applying them according to your budget needs—whether within a resource group, single subscription, management group, or shared across the subscription's billing scope.
  • As you use select compute services across the world, your usage is covered by the plan at reduced prices, helping you get more value from your cloud budget. You pay the hourly amount you set, even if usage is less. During the times when your usage is above your hourly commitment, you’ll simply be billed on a separate line item at regular pay-as-you-go prices. With savings automatically applying across compute usage globally, you’ll continue saving even as your usage needs change over time.

  • The term starts immediately after purchase.

  • Yes, the recommendations are based on your last 30-day eligible compute usage that is not covered by existing reserved instances and/or savings plans.

  • You can assign savings plans at the enrollment or subscription levels and easily change assignments after purchase, as necessary. Assignment allows you to decide whether the savings plan is applied at the Azure account/enrollment or subscription level. This gives you flexibility for savings.

    For example, if you want to buy a savings plan to save money for your entire organization, you can assign the savings plan at the account level. Conversely, if a business unit, such as finance, wants to buy a savings plan for its own use only, it can be assigned to a subscription where only that group can take advantage of the savings.

  • Azure savings plan for compute is available globally for customers transacting under theMicrosoft Customer Agreementand Enterprise Agreement.

  • For Enterprise Agreement customers, Azure prepayments and credits will be used first against savings plan payments. Once the Azure prepayments and credits have been fully utilized, the remaining balance will be invoiced using the primary payment instrument in your billing profile.

    If you're purchasing directly through Azure.com, savings plan payments will be billed against the credit card on file at the time of purchase or during the standard monthly billing cycle charge.

    For customers transacting through a partner, please contact your trusted partner for billing and payment details.

  • Savings plans are OS-agnostic and apply equally to the underlying infrastructure costs regardless of the operating system deployed. Thus, savings plans do not need to be scoped for a particular OS and will automatically cover a mixed environment.

    If Windows Server is deployed on the VM, you may use a license you already own withAzure Hybrid Benefitor pay the Windows Server licensing rate. For more information, visit theAzure pricing calculator.

  • Review your recently purchased savings plans in the Azure portal by selecting "savings plan" on the left side of the portal. The details associated with each purchased savings plan will appear on the right. When you click on a savings plan, you’ll be directed to the utilization report for that plan.

  • Yes, you can purchase multiple savings plans.

  • If you have multiple savings plans, the plan is first applied to the hourly usage from the service with the greatest savings percentage. If multiple plans have the same savings percentage, the plan with the narrowest scope is applied first (from narrowest to broadest, a plan can be applied to resource group, single subscription, management group, or shared). After the benefit has been applied, if more usage from the service remains, the broader-scoped plan is then applied. When the benefit has fully covered that service's usage, the process continues to cover usage from the service with the next highest savings percentage.

  • At the time of purchase, you have the option to pay for your savings plan in a single, upfront payment or divided into equal monthly US dollar payments at no extra cost. For customers transacting in currencies other than the US dollar, billing follows standard currency rules based on the monthly invoice on which the charge is issued. This excludes customers transacting through an Enterprise Agreement.

    Learn more at Microsoft Customer Agreement FAQ - Azure.

  • Follow the process found inthis documentation.

  • You'll receive email notification 30 days prior to expiration and then again on the date of expiration. Once the savings plan term is complete, your deployed resources will continue to run uninterrupted with usage billed at the pay-as-you-go rate. You have the option to set up automatic renewal of your savings plan in the Azure portal.

  • Azure savings plan for compute does not offer capacity guarantees.

  • Savings plans cannot be modified or cancelled once the commitment to spend is made. If your usage needs grow beyond your current savings plan, you may purchase another savings plan to cover the additional usage.

  • WithAzure Reserved Virtual Machine Instances, you select instance family, size, and region, and the savings will only apply if all these requirements are met. With Azure savings plan for compute, you’re only committing to an hourly amount. The savings will plan will look at your entire compute environment to see where it can be applied, regardless of instance size, family, and region.

  • Yes, Azure Reserved Virtual Machine Instances are still available to purchase.

  • Yes. Azure reservations are a good option for the most consistently running resources. Savings plans provide additional flexibility and automated cost optimization.

    For workloads that match the configuration for both a reservation and a savings plan within the same hour, the reservation will always be consumed first, given its more targeted scope.

  • You can trade in your virtual machine, Azure Dedicated Host, and App Service reservations for an Azure savings plan for compute. The total value of the Azure savings plan for compute must be greater than or equal to the prorated remaining monetary value of the reservation commitments you want to trade in. The new Azure savings plan for compute starts a net new term from the trade-in date.

    You can trade in a recently purchased reserved instance for a savings plan in the Azure portal.See instructions for details.

  • You can have the Azure savings plan for compute and Azure Hybrid Benefit together. Savings plans cover the hardware and Azure Hybrid Benefit covers the software running on it.

  • No. Savings plans run for exactly one year or three years after the date of purchase.

  • To help learn and answer some of your savings plan related questions please visit theMicrosoft Documentation, reach out to your account team, or open asupport case here. Temporarily, Microsoft will only be providing Azure savings plan for compute expert support requests in English.

  • Price for Azure savings plan for compute can be found at theAzure Pricing Overview page.

    Please note at launch of Azure savings plan for compute, the 1-year and 3-year savings plan will include a temporary price reduction for the following products. On January 1, 2023, the price will increase to the normal savings plan pricing:

    • ND A100v4 Azure VMs
    • NDm A100v4 Azure VMs
    • HBS and HBS Constrained Core Azure VMs
    • HCS and HCS Constrained Core Azure VMs
    • Azure App Services Premium v3 and Isolated v2 plans (Windows Version Only)


    See Azure savings plan for computePost GA pricefor savings plan pricing as of January 1, 2023.

    Savings Plan pricing is calculated based off the pay-as-you-go price for select compute services. If the pay-as-you-go price decreases or increases, the Savings Plan rate will reflect this price change. Savings Plan savings percentages vary by select compute service and can also fluctuate during the Savings Plans term. Regardless of price changes, the hourly commitment you defined will not change.

  • Virtual Machines used with AKS, AVD, and ML are eligible for the savings plan.

Azure Savings Plan for Compute | Microsoft Azure (2024)

FAQs

For which type of Compute workloads is Azure savings plan for Compute optimized? ›

Add an Azure savings plan for compute for dynamic workloads

Save up to 65 percent off pay-as-you-go pricing when you commit to spend a fixed hourly amount on compute services for one or three years.

Does Azure have savings plans? ›

In the Azure portal, review your Azure Advisor recommendations and then add a savings plan, or contact an Azure sales specialist or partner. Savings plans are quick and easy to purchase, with flexible plan options to fit your needs. Choose a one-year or three-year term.

What is the discount rate for Azure savings plan? ›

Discounts Over Pay-as-you-Go Pricing

The Azure Savings Plan for Compute provides a maximum discount of 65% over pay-as-you-go pricing. The actual amount of discount depends on several factors, including the type of services you use, the region in which they're deployed, and the term of your commitment.

Which are ways to save money on Azure? ›

8 ways to optimize costs today
  • Shut down unused resources. Identify idle virtual machines (VMs), ExpressRoute circuits, and other resources with Azure Advisor. ...
  • Right-size underused resources. ...
  • Add an Azure savings plan for compute for dynamic workloads. ...
  • Reserve instances for consistent workloads.

How does the Azure savings plan work? ›

With Azure savings plan, hourly usage charges incurred from savings plan-eligible resources, which are within the benefit scope of the savings plan, are discounted and applied to your hourly commitment until the hourly commitment is reached. Usage charges above the commitment are billed at your on-demand rate.

What is the difference between Azure savings plan and reserved instances? ›

With reservations, you commit to a specific virtual machine type in a particular Azure region. For example, a D2v4 VM in Japan East for one year. With an Azure savings plan, you commit to spend a fixed hourly amount collectively on compute services. For example, $5.00/hour on compute services for one year.

What is Azure compute? ›

Microsoft Azure Compute services provide the infrastructure, tools, and platforms needed to create, deploy, and manage cloud computing solutions. Compute services allow you to quickly and securely deploy workloads in the cloud and provide the scalability and reliability needed for applications and services.

How do I make a savings plan? ›

Creating a Savings plan can make it easier to save.
  1. Write down the goal you're saving toward.
  2. Figure out the total amount you need to save to reach that goal.
  3. Decide how many weeks you have to save.
  4. Divide the total amount by the number of weeks.

What is the difference between Azure and Azure plan? ›

The Azure plan acts as a container for all Azure subscriptions. When the Azure plan is provisioned, an Azure subscription underneath the Azure plan is created by default. To provision additional Azure subscriptions, Partner's would NOT provision additional Azure plans.

How do I reduce storage costs in Azure? ›

5 Best practices for reducing Azure storage costs
  1. Analyzing Storage Usage and Identifying Inefficiencies. ...
  2. Implementing Data Lifecycle Management Policies. ...
  3. Utilizing Storage Tiers Effectively. ...
  4. Leveraging Azure Blob Storage Features for Cost Savings. ...
  5. Optimizing Data Transfer and Network Costs.
Jan 24, 2024

Which Azure regions are cheapest? ›

Average Price for Azure Regions
GeographyRegion NameAverage price per VM per hour (USD)
Asia PacificCentral India1.05
USNorth Central US1.11
USWest US 21.14
USWest US 31.14
45 more rows

What is the difference between Azure Premium plan 1 and plan 2? ›

Azure AD Premium P2 – is an edition includes all of the features of Azure AD Premium P1 with the addition of Identity Protection and Privileged Identity Management (PIM). Identity Protection provided management of conditional access to apps and critical data.

Why Azure is so expensive? ›

Scale and performance needs: Higher-tier services for better performance and increased scalability come with higher costs. For businesses requiring high-performance computing, large-scale storage, or extensive data processing capabilities, Azure can be costly.

How do I use Azure without paying? ›

Steps : How to Get Azure Free Subscription
  1. Go to the Azure Home Page.
  2. Click on Free Azure Account on the top right corner. ...
  3. Click on Start Free.
  4. Sign-in/Sign-up for a Microsoft account using an email address and password.
  5. Enter your Country/Region and Date of Birth and click next.
Jan 10, 2024

What are the different payment options in Azure? ›

The supported payment methods for Microsoft Azure are credit cards, debit cards, and wire transfer. To get approved to pay by wire transfer, see Pay for your Azure subscription wire transfer. Azure doesn't support virtual or prepaid cards.

Which of the AWS compute services have savings plans? ›

AWS offers three types of Savings Plans – Compute Savings Plans, EC2 Instance Savings Plans, and SageMaker Savings Plans. Compute Savings Plans apply to usage across Amazon EC2, AWS Lambda, and AWS Fargate. The EC2 Instance Savings Plans apply to EC2 usage, and SageMaker Savings Plans apply to SageMaker usage.

What are the types of workloads in Azure Databricks? ›

Azure Databricks offers three distinct workloads on several VM Instances tailored for your data analytics workflow—the Jobs Compute and Jobs Light Compute workloads make it easy for data engineers to build and execute jobs and the All-Purpose Compute workload makes it easy for data scientists to explore, visualise, ...

What is Amazon EC2 compute optimized instance type? ›

Compute-Optimized Instances

Compute-optimized instances are appropriate for applications that require a lot of computation and help from high-performance CPUs. You may employ compute-optimized instances for workloads including web, application, and gaming servers just like general-purpose instances.

Which of these is available for certain Azure compute services to let you save money by paying for only the compute that you use? ›

Azure Savings Plan for Compute is a new option that allows you to commit to a certain amount of compute usage per hour, in exchange for a discount of up to 65 percent on your compute costs. The hourly commitment is based on the total amount of vCPU and memory usage across all your compute resources in a region.

Top Articles
Latest Posts
Article information

Author: Ray Christiansen

Last Updated:

Views: 5642

Rating: 4.9 / 5 (49 voted)

Reviews: 88% of readers found this page helpful

Author information

Name: Ray Christiansen

Birthday: 1998-05-04

Address: Apt. 814 34339 Sauer Islands, Hirtheville, GA 02446-8771

Phone: +337636892828

Job: Lead Hospitality Designer

Hobby: Urban exploration, Tai chi, Lockpicking, Fashion, Gunsmithing, Pottery, Geocaching

Introduction: My name is Ray Christiansen, I am a fair, good, cute, gentle, vast, glamorous, excited person who loves writing and wants to share my knowledge and understanding with you.