Merge pull request #108591 from bandersmsft/reservations-updates-mar-2020

CM+B - Reservations updates

Author: American-Dipper

articles/cost-management-billing/reservations/determine-reservation-purchase.md

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+---
+title: Determine what Azure reservation you should purchase
+description: This article helps you determine which reservation you should purchase.
+author: bandersmsft
+ms.reviewer: yashar
+ms.service: cost-management-billing
+ms.topic: conceptual
+ms.date: 03/22/2020
+ms.author: banders
+---
+
+# Determine what reservation to purchase
+
+All reservations, except Azure Databricks, are applied on an hourly basis. You should purchase reservations based on consistent base usage. There are multiple ways to determine what to purchase and this article helps you determine which reservation you should purchase.
+
+Purchasing more capacity than your historical usage results in an underutilized reservation. You should avoid underutilization whenever possible. Unused reserved capacity doesn't carry over from one hour to next.  Usage exceeding the reserved quantity is charged using more expensive pay-as-you-go rates.
+
+## Analyze usage data
+
+Use the following sections to help analyze your daily usage data to determine your baseline usage and what reservation to purchase.
+
+### Analyze usage for a VM reserved instance purchase
+
+Identify the right VM size for your purchase. For example, a reservation purchased for ES series VMs don't apply to E series VMs, and vice-versa.
+
+Promo series VMs don't get a reservation discount, so remove them from your analysis.
+
+To narrow down to eligible VM usage, apply the following filters on your usage data:
+
+- Filter **MeterCategory** to **Virtual Machines**.
+- Get **ServiceType** information from **AdditionalInfo**. The information suggests the right VM size. For example, Standard E32.
+- Use the **ResourceLocation** field to determine the usage data center.
+
+Ignore resources that have less than 24 hours of usage in a day.
+
+If you want to analyze at the instance size family level, you can get the instance size flexibility values from [https://isfratio.blob.core.windows.net/isfratio/ISFRatio.csv](https://isfratio.blob.core.windows.net/isfratio/ISFRatio.csv). Combine the values with your data to do the analysis. For more information about instance size flexibility, see [Virtual machine size flexibility with Reserved VM Instances](../../virtual-machines/windows/reserved-vm-instance-size-flexibility.md).
+
+### Analyze usage for a SQL Database reserved instance purchase
+
+Reserved capacity applies to SQL Databases vCore compute pricing. It doesn't apply to the DTU-based pricing, SQL license cost, or any costs other than compute.
+
+To narrow eligible SQL usage, apply follow filters on your usage data:
+
+
+- Filter **MeterCategory** for **SQL Database**.
+- Filter **MeterName** for **vCore**.
+- Filter **MeterSubCategory** for all usage records that have _Compute_ in the name.
+
+From **AdditionalInfo** , get the **vCores** value. It tells you how many vCores were used. The quantity is **vCores** multiplied by the number of hours the database was used.
+
+The data informs you about the consistent usage for:
+
+- Combination of database type. For example, managed instance or elastic pool per single database.
+- Service tier. For example, general purpose or business critical.
+- Generation. For example, Gen 5.
+- Resource Location
+
+### Analysis for SQL Data Warehouse
+
+Reserved capacity applies to SQL Data Warehouse DWU usage and is purchased in increments on 100 DWU. To narrow eligible SQL usage, apply the follow filters on your usage data:
+
+- Filter **MeterName** for **100 DWUs**.
+- Filter **Meter Sub-Category** for **Compute Optimized Gen2**.
+
+Use the **Resource Location** field to determine the usage for SQL DW in a region.
+
+SQL Data Warehouse usage can scale up and down throughout the day. Talk to the team that managed the SQL Data Warehouse instance to learn about the base usage.
+
+Go to Reservations in the Azure portal and purchase SQL Data Warehouse reserved capacity in multiples of 100 DWUs.
+
+## Reservation purchase recommendations
+
+Reservation purchase recommendations are calculated by analyzing your hourly usage data over last 7, 30, and 60 days. Azure calculates what your costs would have been if you had a reservation and compares it with your actual pay-as-you-go costs incurred over the time duration. The calculation is performed for every quantity that you used during the time frame. The quantity that maximizes your savings is recommended. 
+
+For example, you might use 500 VMs most of the time, but sometimes usage spikes to 700 VMs. In this example, Azure calculates your savings for both the 500 and 700 VM quantities. Since the 700 VM usage is sporadic, the recommendation calculation determines that savings are maximized for a 500 VM reservation purchase and the recommendation is provided for the 500 quantity.
+
+Note the following points:
+
+- Reservation recommendations are calculated using the on-demand usage rates that apply to you.
+- Recommendations are calculated for individual sizes, not for the instance size family.
+- The recommended quantity for a scope is reduced on the same day that you purchase reservations for the scope.
+    - However, an update for the reservation quantity recommendation across scopes can take up to 25 days. For example, if you purchase based on shared scope recommendations, the single subscription scope recommendations can take up to 25 days to adjust down.
+
+## Recommendations in the Azure portal
+
+Reservation purchases calculated by the recommendations engine are shown on the **Recommended** tab in the [Azure portal](https://portal.azure.com/#blade/Microsoft_Azure_Reservations/CreateBlade/referrer/docs). Here's an example image.
+
+![Image showing recommendations](./media/determine-reservation-purchase/select-product-ri.png)
+
+## Recommendations in the Cost Management Power BI app
+
+Enterprise Agreement and Microsoft Customer Agreement customers can use the VM RI Coverage reports for VMs and purchase recommendations. The coverage reports show you total usage and the usage that's covered by reserved instances.
+
+1. Get the [Cost Management App](https://appsource.microsoft.com/product/power-bi/costmanagement.azurecostmanagementapp).
+2. Go to the VM RI Coverage report – Shared or Single scope, depending on which scope you want to purchase at.
+3. Select the region, instance size family to see the usage, RI coverage, and the purchase recommendation for the selected filter.
+
+## Recommendations in Azure Advisor
+
+Reservation purchase recommendations are available in [Azure Advisor](https://portal.azure.com/#blade/Microsoft_Azure_Expert/AdvisorMenuBlade/overview).
+
+- Advisor has only single-subscription scope recommendations.
+- Advisor recommendations are calculated using 30-day look-back period. The projected savings are for a 3-year reservation term.
+- If you purchase a shared-scope reservation, Advisor reservation purchase recommendations can take up to 30 days to disappear.
+
+## Recommendations using APIs
+
+Use the [Reservation Recommendations](/rest/api/consumption/reservationrecommendations/list) REST API to view recommendations programmatically.
+
+## Next steps
+
+- [Manage Azure Reservations](manage-reserved-vm-instance.md)
+- [Understand reservation usage for your subscription with pay-as-you-go rates](understand-reserved-instance-usage.md)
+- [Understand reservation usage for your Enterprise enrollment](understand-reserved-instance-usage-ea.md)
+- [Windows software costs not included with reservations](reserved-instance-windows-software-costs.md)

articles/cost-management-billing/reservations/media/determine-reservation-purchase/select-product-ri.png

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+---
+title: Prepare to buy an Azure reservation
+description: Learn about important points before you buy an Azure reservation.
+author: bandersmsft
+ms.reviewer: yashar
+ms.service: cost-management-billing
+ms.topic: conceptual
+ms.date: 03/22/2020
+ms.author: banders
+---
+
+# Prepare to buy a reservation
+
+Azure Reservations help you save money by committing to one-year or three-years plans for many Azure resources. Before you enter a commitment to buy a reservation, be sure to review the following sections to prepare for your purchase.
+
+## Who can buy a reservation
+
+To buy a plan, you must have a subscription owner role in an Enterprise (MS-AZR-0017P or MS-AZR-0148P) or Pay-As-You-Go subscription (MS-AZR-0003P or MS-AZR-0023P) or Microsoft Customer Agreement subscription. Cloud solution providers can use the Azure portal or [Partner Center](/partner-center/azure-reservations) to purchase Azure Reservations.
+
+Enterprise Agreement (EA) customers can limit purchases to EA admins by disabling the **Add Reserved Instances** option in the EA Portal. EA admins must be a subscription owner for at least one EA subscription to purchase a reservation. The option is useful for enterprises that want a centralized team to purchase reservations for different cost centers. After the purchase, centralized teams can add cost center owners to the reservations. Owners can then scope the reservation to their subscriptions. The central team doesn't need to have subscription owner access where the reservation is purchased.
+
+A reservation discount only applies to resources associated with subscriptions purchased through Enterprise, Cloud Solution Provider (CSP), Microsoft Customer Agreement and individual plans with pay-as-you-go rates.
+
+## Scope reservations
+
+You can scope a reservation to a subscription or resource groups. Setting the scope for a reservation selects where the reservation savings apply. When you scope the reservation to a resource group, reservation discounts apply only to the resource group—not the entire subscription.
+
+### Reservation scoping options
+
+With resource group scoping you have three options to scope a reservation, depending on your needs:
+
+- **Single resource group scope**—Applies the reservation discount to the matching resources in the selected resource group only.
+- **Single subscription scope**—Applies the reservation discount to the matching resources in the selected subscription.
+- **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. For Microsoft Customer Agreement customers, the billing scope is the billing profile. For individual subscriptions with pay-as-you-go rates, the billing scope is all eligible subscriptions created by the account administrator.
+
+While applying reservation discounts on your usage, Azure processes the reservation in the following order:
+
+1. Reservations that are scoped to a resource group
+2. Single scope reservations
+3. Shared scope reservations
+
+A single resource group can get reservation discounts from multiple reservations, depending on how you scope your reservations.
+
+### Scope a reservation to a resource group
+
+You can scope the reservation to a resource group when you buy the reservation, or you set the scope after purchase. You must be a subscription owner to scope the reservation to a resource group.
+
+To set the scope, go to the [Purchase reservation](https://ms.portal.azure.com/#blade/Microsoft\_Azure\_Reservations/CreateBlade/referrer/Browse\_AddCommand) page in the Azure portal. Select the reservation type that you want to buy. On the **Select the product that you want to purchase** selection form, change the Scope value to Single resource group. Then, select a resource group.
+
+![Example showing VM reservation purchase selection](./media/prepare-buy-reservation/select-product-to-purchase.png)
+
+Purchase recommendations for the resource group in the virtual machine reservation are shown. Recommendations are calculated by analyzing your usage over the last 30 days. A purchase recommendation is made if the cost of running resources with reserved instances is cheaper than the cost of running resources with pay-as-you-go rates. For more information about reservation purchase recommendations, see [Get Reserved Instance purchase recommendations based on usage pattern](https://azure.microsoft.com/blog/get-usage-based-reserved-instance-recommendations).
+
+You can always update the scope after you buy a reservation. To do so, go to the reservation, click **Configuration**, and rescope the reservation. Rescoping a reservation isn't a commercial transaction. Your reservation term isn't changed. For more information about updating the scope, see [Update the scope after you purchase a reservation](manage-reserved-vm-instance.md#change-the-reservation-scope).
+
+![Example showing a reservation scope change](./media/prepare-buy-reservation/rescope-reservation-resource-group.png)
+
+## Purchase reservations
+
+You can purchase reservations from Azure portal, APIs, PowerShell, CLI. Read the following articles that apply to you when you're ready to make a reservation purchase:
+
+- [App Service](prepay-app-service-isolated-stamp.md)
+- [Azure Cache for Redis](../../azure-cache-for-redis/cache-reserved-pricing.md)
+- [Cosmos DB](../../cosmos-db/cosmos-db-reserved-capacity.md)
+- [Databricks](prepay-databricks-reserved-capacity.md)
+- [Data Explorer](../../data-explorer/pricing-reserved-capacity.md)
+- [Disk Storage](../../virtual-machines/linux/disks-reserved-capacity.md)
+- [Dedicated Host](../../virtual-machines/prepay-dedicated-hosts-reserved-instances.md)
+- [Software plans](../../virtual-machines/linux/prepay-suse-software-charges.md)
+- [Storage](../../storage/blobs/storage-blob-reserved-capacity.md)
+- [SQL Database](../../sql-database/sql-database-reserved-capacity.md)
+- [SQL Data Warehouse](prepay-sql-data-warehouse-charges.md)
+- [Virtual machines](../../virtual-machines/windows/prepay-reserved-vm-instances.md)
+
+## Next steps
+
+- [Manage Reservations for Azure resources](manage-reserved-vm-instance.md)

articles/cost-management-billing/reservations/media/save-compute-costs-reservations/rescope-reservation-resource-group.png renamed to articles/cost-management-billing/reservations/media/prepare-buy-reservation/rescope-reservation-resource-group.png

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+---
+title: How an Azure reservation discount is applied
+description: This article helps you understand how reserved instance discounts are generally applied.
+author: bandersmsft
+ms.reviewer: yashar
+ms.service: cost-management-billing
+ms.topic: conceptual
+ms.date: 03/22/2020
+ms.author: banders
+---
+
+# How a reservation discount is applied
+
+This article helps you understand how reserved instance discounts are generally applied. The reservation discount applies to the resource usage matching the attributes you select when you buy the reservation. Attributes include the scope where the matching VMs, SQL databases, Azure Cosmos DB, or other resources run. For example, if you want a reservation discount for four Standard D2 virtual machines in the West US region, then select the subscription where the VMs are running.
+
+A reservation discount is "*use-it-or-lose-it*". If you don't have matching resources for any hour, then you lose a reservation quantity for that hour. You can't carry forward unused reserved hours.
+
+When you shut down a resource, the reservation discount automatically applies to another matching resource in the specified scope. If no matching resources are found in the specified scope, then the reserved hours are *lost*.
+
+For example, you might later create a resource and have a matching reservation that is underutilized. The reservation discount automatically applies to the new matching resource.
+
+If the virtual machines are running in different subscriptions within your enrollment/account, then select the scope as shared. Shared scope allows the reservation discount to be applied across subscriptions. You can change the scope after you buy a reservation. For more information, see [Manage Azure Reservations](manage-reserved-vm-instance.md).
+
+A reservation discount only applies to resources associated with Enterprise, Microsoft Customer Agreement, CSP, or subscriptions with pay-as-you go rates. Resources that run in a subscription with other offer types don't receive the reservation discount.
+
+## When the reservation term expires
+
+At the end of the reservation term, the billing discount expires, and the resources are billed at the pay-as-you go price. By default, the reservations are not set to renew automatically. You can choose to enable automatic renewal of a reservation by selecting the option in the renewal settings. With automatic renewal, a replacement reservation will be purchased upon expiry of the existing reservation. By default, the replacement reservation has the same attributes as the expiring reservation, optionally you change the billing frequency, term, or quantity in the renewal settings. Any user with owner access on the reservation and the subscription used for billing can set up renewal.  
+
+## Discount applies to different sizes
+
+When you buy a reservation, the discount can apply to other instances with attributes that are within the same size group. This feature is known as instance size flexibility. The flexibility of the discount coverage depends on the type of reservation and the attributes you pick when you buy the reservation.
+
+Service plans:
+
+- Reserved VM Instances: When you buy the reservation and select **Optimized for instance size flexibility**, the discount coverage depends on the VM size you select. The reservation can apply to the virtual machines (VMs) sizes in the same size series group. For more information, see [Virtual machine size flexibility with Reserved VM Instances](../../virtual-machines/windows/reserved-vm-instance-size-flexibility.md).
+- Azure Storage reserved capacity: You can purchase reserved capacity for standard Azure Storage accounts in units of 100 TiB or 1 PiB per month. Azure Storage reserved capacity is available in all regions for any access tier (hot, cool, or archive) and for any replication option (LRS, GRS, or ZRS).
+- SQL Database reserved capacity: The discount coverage depends on the performance tier you pick. For more information, see [Understand how an Azure reservation discount is applied](understand-reservation-charges.md).
+- Azure Cosmos DB reserved capacity: The discount coverage depends on the provisioned throughput. For more information, see [Understand how an Azure Cosmos DB reservation discount is applied](understand-cosmosdb-reservation-charges.md).
+
+## How discounts apply to specific Azure services
+
+Read the following articles that apply to you to learn how discounts apply to a specific Azure service:
+
+- [App Service](reservation-discount-app-service-isolated-stamp.md)
+- [Azure Cache for Redis](understand-azure-cache-for-redis-reservation-charges.md)
+- [Cosmos DB](understand-cosmosdb-reservation-charges.md)
+- [Database for MariaDB](understand-reservation-charges-mariadb.md)
+- [Database for MySQL](understand-reservation-charges-mysql.md)
+- [Database for PostgreSQL](understand-reservation-charges-postgresql.md)
+- [Databricks](reservation-discount-databricks.md)
+- [Data Explorer](understand-azure-data-explorer-reservation-charges.md)
+- [Dedicated Hosts](billing-understand-dedicated-hosts-reservation-charges.md)
+- [Disk Storage](understand-disk-reservations.md)
+- [Red Hat Linux Enterprise](understand-rhel-reservation-charges.md)
+- [Software plans](understand-suse-reservation-charges.md)
+- [Storage](understand-storage-charges.md)
+- [SQL Database](understand-reservation-charges.md)
+- [SQL Data Warehouse](reservation-discount-azure-sql-dw.md)
+- [Virtual machines](../manage/understand-vm-reservation-charges.md)
+
+
+## Next steps
+
+- [Manage Azure Reservations](manage-reserved-vm-instance.md)
+- [Understand reservation usage for your subscription with pay-as-you-go rates](understand-reserved-instance-usage.md)
+- [Understand reservation usage for your Enterprise enrollment](understand-reserved-instance-usage-ea.md)
+- [Windows software costs not included with reservations](reserved-instance-windows-software-costs.md)