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Copy file name to clipboardExpand all lines: articles/cost-management-billing/reservations/prepare-buy-reservation.md
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---
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title: Prepare to buy an Azure reservation
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description: Learn about important points before you buy an Azure reservation.
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title: Buy an Azure reservation
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description: Learn about important points to help you buy an Azure reservation.
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author: bandersmsft
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ms.reviewer: yashar
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ms.service: cost-management-billing
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ms.author: banders
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---
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# Prepare to buy a reservation
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# Buy a reservation
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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.
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## Discounted subscription and offer types
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Reservation discounts apply to the following eligible subscriptions and offer types.
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- Enterprise agreement (offer numbers: MS-AZR-0017P or MS-AZR-0148P)
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- Microsoft Customer Agreement subscriptions.
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- Individual plans with pay-as-you-go rates (offer numbers: MS-AZR-0003P or MS-AZR-0023P)
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- CSP subscriptions
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Resources that run in a subscription with other offer types don't receive the reservation discount.
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## Purchase reservations
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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:
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-[SQL Data Warehouse](prepay-sql-data-warehouse-charges.md)
You can pay for reservations with monthly payments. Unlike an up-front purchase where you pay the full amount, the monthly payment option divides the total cost of the reservation evenly over each month of the term. The total cost of up-front and monthly reservations is the same and you don't pay any extra fees when you choose to pay monthly.
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If reservation is purchased using Microsoft customer agreement (MCA), your monthly payment amount may vary, depending on the current month's market exchange rate for your local currency.
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Monthly payments are not available for: Databricks, SUSE Linux reservations, Red Hat Plans and Azure Red Hat OpenShift Compute.
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Purchase reservations in the [Azure portal](https://ms.portal.azure.com/#blade/Microsoft_Azure_Reservations/CreateBlade/referrer/Docs).
To view the payments schedule after purchase, select a reservation, click the **Reservation order ID**, and then click the **Payments** tab.
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### View payments made
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You can view payments that were made using APIs, usage data, and in cost analysis. For reservations paid for monthly, the frequency value is shown as **recurring** in usage data and Reservation Charges API. For reservations paid up front, the value is shown as **onetime**.
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Cost analysis shows monthly purchases in the default view. Apply the **purchase** filter to **Charge type** and **recurring** for **Frequency** to see all purchases. To view only reservations, apply a filter for **Reservation**.
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### Switch to monthly payments at renewal
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When you renew a reservation, you can change the billing frequency to monthly.
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### Exchange and refunds
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Like other reservations, you can refund or exchange reservations purchased with monthly billing.
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When you exchange a reservation that's paid for monthly, the total lifetime cost of the new purchase should be greater than the leftover payments that are canceled for the returned reservation. There are no other limits or fees for exchanges. You can exchange a reservation that's paid for up front to purchase a new reservation that's billed monthly. However, the lifetime value of the new reservation should be greater than the prorated value of the reservation being returned.
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If you cancel a reservation that's paid for monthly, canceled future payments accrue towards the $50,000 USD refund limit.
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For more information about exchange and refunds, see [Self-service exchanges and refunds for Azure Reservations](exchange-and-refund-azure-reservations.md).
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## Reservation notifications
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Depending on how you pay for your Azure subscription, email reservation notifications are sent to the following users in your organization. Notifications are sent for various events including:
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- Purchase
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- Upcoming reservation expiration
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- Expiry
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- Renewal
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- Cancellation
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- Scope change
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For customers with EA subscriptions:
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- A purchase notification is sent to the EA notification contacts.
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- Other reservation lifecycle notifications are sent only to the EA notification contacts.
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- Users added to a reservation using RBAC (IAM) permission don't receive any email notifications.
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For customers with individual subscriptions:
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- The purchaser receives a purchase notification.
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- At the time of purchase, the subscription billing account owner receives a purchase notification.
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- The account owner receives all other notifications.
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## Next steps
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-[Manage Reservations for Azure resources](manage-reserved-vm-instance.md)
Copy file name to clipboardExpand all lines: articles/cost-management-billing/reservations/save-compute-costs-reservations.md
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For more information about how reservation scope works, see [Scope reservations](prepare-buy-reservation.md#scope-reservations).
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## Determine what to purchase
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All reservations, except Azure Databricks, are applied on an hourly basis. Consider reservation purchases based on your consistent base usage. You can determine which reservation to purchase by analyzing your usage data or by using reservation recommendations. Recommendations are available in:
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- Azure advisor (VMs only)
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- Reservation purchase experience in the Azure portal
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- Cost Management Power BI app
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- APIs
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For more information, see [Determine what reservation to purchase](determine-reservation-purchase.md)
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## Buying a reservation
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You can purchase reservations from the Azure portal, APIs, PowerShell, and CLI.
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Go to Azure portal to purchase (https://ms.portal.azure.com/#blade/Microsoft_Azure_Reservations/CreateBlade/referrer/Docs)
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For more information, see [Buy a reservation](prepare-buy-reservation.md)
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## How is a reservation billed?
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The reservation is charged to the payment method tied to the subscription. The reservation cost is deducted from your monetary commitment balance, if available. When your monetary commitment balance doesn't cover the cost of the reservation, you're billed the overage. If you have a subscription from an individual plan with pay-as-you-go rates, the credit card you have on your account is billed immediately for up-front purchases. Monthly payments appear on your invoice and your credit card is charged monthly. When you're billed by invoice, you see the charges on your next invoice.
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## Permissions to view and manage reservations
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The user who purchases a reservation and the account administrator of the subscription used for billing the reservation get the Owner role on the reservation order and the reservation.
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You can delegate reservation management by adding people to roles on the reservation order or the reservation. You assign the roles in the Azure portal or by using APIs and PowerShell.
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For more information, see [Add or change users who can manage a reservation](manage-reserved-vm-instance.md#add-or-change-users-who-can-manage-a-reservation)
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## Get reservation details and utilization after purchase
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If you have permission to view to the reservation, you can see it and its use in the Azure portal. You can get the data using APIs, as well.
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For more information on how to see reservations in Azure portal, see [View reservations in the Azure portal](view-reservations.md)
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## Manage reservations after purchase
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After you buy an Azure reservation, you can update the scope to apply reservation to a different subscription, change who can manage the reservation, split a reservation into smaller parts, or change instance size flexibility.
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For more information, see Manage Reservations for Azure resources (manage-reserved-vm-instance.md)
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## Flexibility with Azure reservations
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-**Azure Database for MySQL** - Only the compute costs are included with a reservation. A reservation doesn't cover software, networking, or storage charges associated with the MySQL Database server.
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-**Azure Database for PostgreSQL** - Only the compute costs are included with a reservation. A reservation doesn't cover software, networking, or storage charges associated with the PostgreSQL Database servers.
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-**Azure Database for MariaDB** - Only the compute costs are included with a reservation. A reservation doesn't cover software, networking, or storage charges associated with the MariaDB Database server.
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-**Azure Data Explorer** - A reservation covers the markup charges. A reservation doesn't cover compute, networking, or storage charges associated with the clusters.
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-**Azure Data Explorer** - A reservation covers the markup charges. A reservation doesn't apply to compute, networking, or storage charges associated with the clusters.
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-**Azure Cache for Redis** - Only the compute costs are included with a reservation. A reservation doesn't cover networking or storage charges associated with the Redis cache instances.
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-**Azure Dedicated Host** - Only the compute costs are included with the Dedicated host.
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-**Azure Disk Storage reservations** - A reservation only covers premium SSDs of P30 size or greater. It doesn't cover any other disk types or sizes smaller than P30.
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