Savings plan purchase recommendations are calculated by analyzing your hourly pay-as-you-go usage and cost data. Recommendations are generated for the selected savings plan term (1- or 3-years), [benefit scope](scope-savings-plan.md) (shared, subscription and look back period (7-, 30-, or 60-days). For each term, benefit scope and look back period combination, Azure simulates what your total costs would have been if you had a savings plan, and compares this simulated cost to the pay-as-you-go costs you actually incurred. The commitment amount that returns the greatest savings for each term, benefit scope and look back period combination is highlighted. To learn more about how recommendations are generated, see [How savings plan recommendations are generated](purchase-recommendations.md#how-savings-plan-recommendations-are-generated).
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