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articles/cost-management-billing/reservations/save-compute-costs-reservations.md

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# What are Azure Reservations?
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Azure Reservations help you save money by committing to one-year or three-years plans for multiple products. Committing allows you to get a discount on the resources you use. Reservations can significantly reduce your resource costs up to 72% on pay-as-you-go prices. Reservations provide a billing discount and don't affect the runtime state of your resources. After you purchase a reservation, the discount automaticaly applies to matching resources.
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Azure Reservations help you save money by committing to one-year or three-years plans for multiple products. Committing allows you to get a discount on the resources you use. Reservations can significantly reduce your resource costs up to 72% on pay-as-you-go prices. Reservations provide a billing discount and don't affect the runtime state of your resources. After you purchase a reservation, the discount automatically applies to matching resources.
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You can pay for a reservation up front or monthly. 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. Monthly payment is available for Azure reservations, not third-party products.
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You can buy a reservation in the [Azure portal](https://portal.azure.com/#blade/Microsoft_Azure_Reservations/ReservationsBrowseBlade).
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## Why buy a reservation?
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If you have consistent usage of resources that support reservations, buying a reservation gives you the option to reduce your costs. For example, when you continuously run instances of a service without a reservation, you're charged at pay-as-you-go rates. When you buy a reservation, you immediately get the reservation discount. The resources are no longer charged at the pay-as-you-go rates.
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If you have consistent resource usage that supports reservations, buying a reservation gives you the option to reduce your costs. For example, when you continuously run instances of a service without a reservation, you're charged at pay-as-you-go rates. When you buy a reservation, you immediately get the reservation discount. The resources are no longer charged at the pay-as-you-go rates.
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## How reservation discount is applied
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After purchase, the reservation discount automaticaly applies to the resource usage that matches the attributes you select when you buy the reservation. Attributes include the SKU, regions (where applicable), and scope. Reservation scope selects where the reservation savings apply.
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After purchase, the reservation discount automatically applies to the resource usage that matches the attributes you select when you buy the reservation. Attributes include the SKU, regions (where applicable), and scope. Reservation scope selects where the reservation savings apply.
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For more information about how discount is applied, see [Reserved instance discount application](reservation-discount-application.md).
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For more information about how reservation scope works, see [Reserved instance discount application](https://docs.microsoft.com/en-us/azure/cost-management-billing/reservations/prepare-buy-reservation#scope-reservations).
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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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## Flexibility with Azure reservations
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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 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 Dedicatd host.
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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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Software plans:
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- **Azure VMware Solution by CloudSimple** - A reservation covers the VMWare CloudSimple Nodes. Additional software costs still apply.
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- **Azure Red Hat OpenShift** - A reservation applies to the OpenShift costs, not to Azure infrastructure costs.
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For Windows virtual machines and SQL Database, reservation discount doesn't apply to the software costs. You can cover the licensing costs with [Azure Hybrid Benefit](https://azure.microsoft.com/pricing/hybrid-benefit/).
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For Windows virtual machines and SQL Database, the reservation discount doesn't apply to the software costs. You can cover the licensing costs with [Azure Hybrid Benefit](https://azure.microsoft.com/pricing/hybrid-benefit/).
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## Need help? Contact us.

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