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Merge pull request #274534 from bandersmsft/ghissue119185
MCM - Update prepay-databricks to improve ratio table for ghissue 119185
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---
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title: Optimize Azure Databricks costs with a pre-purchase
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title: Optimize Azure Databricks costs with a prepurchase
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description: Learn how you can prepay for Azure Databricks charges with reserved capacity to save money.
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author: bandersmsft
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ms.reviewer: sapnakeshari
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ms.service: cost-management-billing
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ms.subservice: reservations
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ms.topic: how-to
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ms.date: 04/15/2024
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ms.date: 05/07/2024
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ms.author: banders
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---
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# Optimize Azure Databricks costs with a pre-purchase
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# Optimize Azure Databricks costs with a prepurchase
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You can save on your Azure Databricks unit (DBU) costs when you pre-purchase Azure Databricks commit units (DBCU) for one or three years. You can use the pre-purchased DBCUs at any time during the purchase term. Unlike VMs, the pre-purchased units don't expire on an hourly basis and you use them at any time during the term of the purchase.
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You can save on your Azure Databricks unit (DBU) costs when you prepurchase Azure Databricks commit units (DBCU) for one or three years. You can use the prepurchased DBCUs at any time during the purchase term. Unlike VMs, the prepurchased units don't expire on an hourly basis and you use them at any time during the term of the purchase.
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Any Azure Databricks use deducts from the pre-purchased DBUs automatically. You don't need to redeploy or assign a pre-purchased plan to your Azure Databricks workspaces for the DBU usage to get the pre-purchase discounts.
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Any Azure Databricks use deducts from the prepurchased DBUs automatically. You don't need to redeploy or assign a prepurchased plan to your Azure Databricks workspaces for the DBU usage to get the prepurchase discounts.
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The pre-purchase discount applies only to the DBU usage. Other charges such as compute, storage, and networking are charged separately.
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The prepurchase discount applies only to the DBU usage. Other charges such as compute, storage, and networking are charged separately.
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## Determine the right size to buy
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Databricks pre-purchase applies to all Databricks workloads and tiers. You can think of the pre-purchase as a pool of pre-paid Databricks commit units. Usage is deducted from the pool, regardless of the workload or tier. Usage is deducted in the following ratio:
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Databricks prepurchase applies to all Databricks workloads and tiers. You can think of the prepurchase as a pool of prepaid Databricks commit units. Usage is deducted from the pool, regardless of the workload or tier. Usage is deducted in the following ratios:
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| **Workload** | **DBU application ratio - Standard tier** | **DBU application ratio Premium tier** |
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| Workload | DBU application ratio - Standard tier | DBU application ratio - Premium tier |
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| --- | --- | --- |
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| Data Analytics | 0.4 | 0.55 |
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| Data Engineering | 0.15 | 0.30 |
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| Data Engineering Light | 0.07 | 0.22 |
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For example, when a quantity of Data Analytics – Standard Tier is consumed, the pre-purchased Databricks commit units is deducted by 0.4 units.
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| All-purpose compute | 0.4 | 0.55 |
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| Jobs compute | 0.15 | 0.30 |
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| Jobs light compute | 0.07 | 0.22 |
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| SQL compute | N/A | 0.22 |
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| SQL Pro compute | N/A | 0.55 |
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| Serverless SQL | N/A | 0.70 |
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| Serverless real-time inference | N/A | 0.082 |
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| Model training | N/A | 0.65 |
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| Delta Live Tables | NA | 0.30 (core), 0.38 (pro), 0.54 (advanced) |
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| All Purpose Photon | NA | 0.55 |
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For example, when All-purpose compute – Standard Tier capacity gets consumed, the prepurchased Databricks commit units get deducted by 0.4 units. When Jobs light compute – Standard Tier capacity gets used, the prepurchased Databricks commit unit gets deducted by 0.07 units.
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>[!NOTE]
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> Enabling Photon increases the DBU count.
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Before you buy, calculate the total DBU quantity consumed for different workloads and tiers. Use the preceding ratios to normalize to DBCU and then run a projection of total usage over next one or three years.
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## Purchase Databricks commit units
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You can buy Databricks plans in the [Azure portal](https://portal.azure.com/#blade/Microsoft_Azure_Reservations/CreateBlade/referrer/documentation/filters/%7B%22reservedResourceType%22%3A%22Databricks%22%7D). To buy reserved capacity, you must have the owner role for at least one enterprise or Microsoft Customer Agreement or an individual subscription with pay-as-you-go rates subscription, or the required role for CSP subscriptions.
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You can buy Databricks plans in the [Azure portal](https://portal.azure.com/#blade/Microsoft_Azure_Reservations/CreateBlade/referrer/documentation/filters/%7B%22reservedResourceType%22%3A%22Databricks%22%7D).
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To buy reserved capacity, you must have the owner role for at least:
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- An Enterprise Agreement
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- Microsoft Customer Agreement
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- Individual subscription with pay-as-you-go rates subscription
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- Required role for a CSP subscription
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- To buy a reservation, you must have owner role or reservation purchaser role on an Azure subscription.
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- For Enterprise subscriptions, **Reserved Instances** policy option must be enabled in the [Azure portal](https://portal.azure.com/#blade/Microsoft_Azure_GTM/ModernBillingMenuBlade/AllBillingScopes). Navigate to the **Policies** menu to change settings.
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- For CSP subscriptions, follow the steps in [Acquire, provision, and manage Azure reserved VM instances (RI) + server subscriptions for customers](/partner-center/azure-ri-server-subscriptions).
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**To Purchase:**
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1. Go to the [Azure portal](https://portal.azure.com/#blade/Microsoft_Azure_Reservations/CreateBlade/referrer/documentation/filters/%7B%22reservedResourceType%22%3A%22Databricks%22%7D).
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1. Select a subscription. Use the **Subscription** list to select the subscription that's used to pay for the reserved capacity. The payment method of the subscription is charged the upfront costs for the reserved capacity. Charges are deducted from the enrollment's Azure Prepayment (previously called monetary commitment) balance or charged as overage.
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1. Select a subscription. Use the **Subscription** list to select the subscription that gets used to pay for the reserved capacity. The payment method of the subscription is charged the upfront costs for the reserved capacity. Charges are deducted from the enrollment's Azure Prepayment (previously called monetary commitment) balance or charged as overage.
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1. Select a scope. Use the **Scope** list to select a subscription scope:
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- **Single resource group scope** Applies the reservation discount to the matching resources in the selected resource group only.
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- **Single subscription scope** Applies the reservation discount to the matching resources in the selected subscription.
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- **Shared scope** Applies the reservation discount to matching resources in eligible subscriptions that are in the billing context. For Enterprise Agreement customers, the billing context is the enrollment.
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- **Single resource group scope** - Applies the reservation discount to the matching resources in the selected resource group only.
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- **Single subscription scope** - Applies the reservation discount to the matching resources in the selected subscription.
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- **Shared scope** - Applies the reservation discount to matching resources in eligible subscriptions that are in the billing context. For Enterprise Agreement customers, the billing context is the enrollment.
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- **Management group** - Applies the reservation discount to the matching resource in the list of subscriptions that are a part of both the management group and billing scope.
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1. Select how many Azure Databricks commit units you want to purchase and complete the purchase.
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- Update reservation scope
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- Azure role-based access control (Azure RBAC)
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You can't split or merge the Databricks commit unit pre-purchase. For more information about managing reservations, see [Manage reservations after purchase](manage-reserved-vm-instance.md).
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You can't split or merge the Databricks commit unit prepurchase. For more information about managing reservations, see [Manage reservations after purchase](manage-reserved-vm-instance.md).
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## Cancellations and exchanges
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Cancel and exchange isn't supported for Databricks pre-purchase plans. All purchases are final.
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Cancel and exchange isn't supported for Databricks prepurchase plans. All purchases are final.
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## Need help? Contact us.
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- To learn more about Azure Reservations, see the following articles:
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- [What are Azure Reservations?](save-compute-costs-reservations.md)
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- [Understand how an Azure Databricks pre-purchase DBCU discount is applied](reservation-discount-databricks.md)
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- [Understand how an Azure Databricks prepurchase DBCU discount is applied](reservation-discount-databricks.md)
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- [Understand reservation usage for your Enterprise enrollment](understand-reserved-instance-usage-ea.md)

articles/cost-management-billing/reservations/reservation-discount-databricks.md

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---
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title: How an Azure Databricks prepurchase discount is applied
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description: Learn how an Azure Databricks prepurchase discount applies to your usage. You can use these Databricks at any time during the purchase term.
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description: Learn how an Azure Databricks prepurchase discount applies to your usage. You can use Databricks prepurchased units at any time during the purchase term.
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author: bandersmsft
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ms.reviewer: primittal
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ms.service: cost-management-billing
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ms.subservice: reservations
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ms.topic: conceptual
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ms.date: 11/17/2023
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ms.date: 05/07/2024
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ms.author: banders
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---
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## Prepurchase discount application
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Databricks prepurchase applies to all Databricks workloads and tiers. You can think of the prepurchase as a pool of prepaid Databricks commit units. Usage is deducted from the pool, regardless of the workload or tier. Usage is deducted in the following ratio:
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Databricks prepurchase applies to all Databricks workloads and tiers. You can think of the prepurchase as a pool of prepaid Databricks commit units. Usage is deducted from the pool, regardless of the workload or tier. Usage is deducted in the following ratios:
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| **Workload** | **DBU application ratio Standard tier** | **DBU application ratio Premium tier** |
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| Workload | DBU application ratio - Standard tier | DBU application ratio - Premium tier |
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| --- | --- | --- |
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| All Purpose Compute | 0.4 | 0.55 |
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| Jobs Compute | 0.15 | 0.30 |
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| Jobs Light Compute | 0.07 | 0.22 |
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| SQL Compute | NA | 0.22 |
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| All-purpose compute | 0.4 | 0.55 |
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| Jobs compute | 0.15 | 0.30 |
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| Jobs light compute | 0.07 | 0.22 |
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| SQL compute | N/A | 0.22 |
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| SQL Pro compute | N/A | 0.55 |
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| Serverless SQL | N/A | 0.70 |
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| Serverless real-time inference | N/A | 0.082 |
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| Model training | N/A | 0.65 |
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| Delta Live Tables | NA | 0.30 (core), 0.38 (pro), 0.54 (advanced) |
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| All Purpose Photon | NA | 0.55 |
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For example, when a quantity of Data Analytics – Standard tier is consumed, the prepurchased Databricks commit units is deducted by 0.4 units. When a quantity of Data Engineering Light – Standard tier is used, the prepurchased Databricks commit unit is deducted by 0.07 units.
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For example, when All-purpose compute – Standard Tier capacity gets consumed, the prepurchased Databricks commit units get deducted by 0.4 units. When Jobs light compute – Standard Tier capacity gets used, the prepurchased Databricks commit unit gets deducted by 0.07 units.
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Note: enabling Photon will increase the DBU count.
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>[!NOTE]
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> Enabling Photon increases the DBU count.
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## Determine plan use
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To determine your DBCU plan use, go to the Azure portal > **Reservations** and select the purchased Databricks plan. Your utilization to-date is shown with any remaining units. For more information about determining your reservation use, see the [See reservation usage](reservation-apis.md#see-reservation-usage) article.
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To determine your DBCU plan use, go to the Azure portal > **Reservations** and select the purchased Databricks plan. Your utilization to-date is shown with any remaining units. For more information about determining your reservation use, see the [Reservation usage](reservation-apis.md#see-reservation-usage) article.
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## How discount application shows in usage data
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## Next steps
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- To learn how to manage a reservation, see [Manage Azure Reservations](manage-reserved-vm-instance.md).
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- To learn more about prepurchasing Azure Databricks to save money, see [Optimize Azure Databricks costs with a pre-purchase](prepay-databricks-reserved-capacity.md).
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- To learn more about prepurchasing Azure Databricks to save money, see [Optimize Azure Databricks costs with a prepurchase](prepay-databricks-reserved-capacity.md).
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- To learn more about Azure Reservations, see the following articles:
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- [What are Azure Reservations?](save-compute-costs-reservations.md)
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- [Manage Reservations in Azure](manage-reserved-vm-instance.md)

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