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Copy file name to clipboardExpand all lines: articles/billing/billing-understand-storage-charges.md
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ms.service: billing
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ms.topic: conceptual
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ms.date: 11/01/2019
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ms.date: 11/05/2019
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ms.author: tamram
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---
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@@ -15,7 +15,7 @@ After you purchase Azure Storage reserved capacity, the reservation discount is
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For more information about Azure Storage reserved capacity, see [Optimize costs for Blob storage with reserved capacity](../storage/blobs/storage-blob-reserved-capacity.md).
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For information about Azure Storage reservation pricing, see [Block blob pricing](/pricing/details/storage/blobs/) and [Azure Data Lake Storage Gen 2 pricing](/pricing/details/storage/data-lake/).
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For information about Azure Storage reservation pricing, see [Block blob pricing](https://azure.microsoft.com/pricing/details/storage/blobs/) and [Azure Data Lake Storage Gen 2 pricing](https://azure.microsoft.com/pricing/details/storage/data-lake/).
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## How the reservation discount is applied
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The following examples show how the Azure Storage reserved capacity discount applies, depending on the deployments.
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Suppose that you have purchased 100 TiB of reserved capacity in the in US West 2 region for a 1-year term. Your reservation is for locally redundant storage (LRS) in the hot access tier.
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Suppose that you have purchased 100 TB of reserved capacity in the in US West 2 region for a 1-year term. Your reservation is for locally redundant storage (LRS) in the hot access tier.
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The cost of this sample reservation is $18,540. You can either choose to pay the full amount up front or to pay fixed monthly installments of $1,545 per month for the next twelve months.
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For these examples, assume that you have signed up for a monthly reservation payment plan. The following scenarios describe what happens if you under-use or overuse your reserved capacity.
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### Underusing your capacity
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Suppose that in a given hour within the reservation period, you used only 80 TiB of your 100 TiB reserved capacity. The remaining 20 TiB is not applied for that hour and does not carry over.
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Suppose that in a given hour within the reservation period, you used only 80 TB of your 100 TB reserved capacity. The remaining 20 TB is not applied for that hour and does not carry over.
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### Overusing your capacity
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Suppose that in a given hour within the reservation period, you used 101 TiB of storage capacity. The reservation discount applies to 100 TiB of your data, and the remaining 1 TiB is charged at pay-as-you-go rates for that hour. If in the next hour your usage changes to 100 TiB, then all usage is covered by the reservation.
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Suppose that in a given hour within the reservation period, you used 101 TB of storage capacity. The reservation discount applies to 100 TB of your data, and the remaining 1 TB is charged at pay-as-you-go rates for that hour. If in the next hour your usage changes to 100 TB, then all usage is covered by the reservation.
Copy file name to clipboardExpand all lines: articles/storage/blobs/storage-blob-reserved-capacity.md
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### Reservation capacity
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You can purchase Azure Storage reserved capacity in units of 100 TiB and 1 PiB per month for a one-year or three-year term.
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You can purchase Azure Storage reserved capacity in units of 100 TB and 1 PB per month for a one-year or three-year term.
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### Reservation scope
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When you purchase an Azure Storage reservation, you must choose the region, access tier, and redundancy option for the reservation. Your reservation is valid only for data stored in that region, access tier, and redundancy level. For example, suppose you purchase a reservation for data in US West for the hot tier using zone-redundant storage (ZRS). You cannot use the same reservation for data in US East, data in the archive tier, or data in geo-redundant storage (GRS). However, you can purchase another reservation for your additional needs.
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Reservations are available today for 100 TiB or 1 PiB blocks, with higher discounts for 1 PiB blocks. When you purchase a reservation in the Azure portal, Microsoft may provide you with recommendations based on your previous usage to help determine which reservation you should purchase.
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Reservations are available today for 100 TB or 1 PB blocks, with higher discounts for 1 PB blocks. When you purchase a reservation in the Azure portal, Microsoft may provide you with recommendations based on your previous usage to help determine which reservation you should purchase.
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