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articles/cost-management-billing/reservations/azure-openai.md

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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: 11/26/2024
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ms.date: 12/02/2024
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ms.author: banders
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# customer intent: As a billing administrator, I want to learn about saving costs with Microsoft Azure OpenAI Service Provisioned Reservations and buy one.
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You can save money on Azure OpenAI provisioned throughput by committing to a reservation for your provisioned throughput units (PTUs) usage for a duration of one month or one year. This article explains how you can save money with Azure OpenAI Service Provisioned Reservations. For more information about Azure OpenAI PTUs, see [Provisioned throughput units onboarding](/azure/ai-services/openai/how-to/provisioned-throughput-onboarding).
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To purchase an Azure OpenAI reservation, you choose an Azure region, quantity, and the deployment type that you want covered. Then add the Azure OpenAI SKU (Global, Managed Area (Data Zone), or Regional) to your cart. Then verify the quantity of provisioned throughput units that you want to purchase and complete your order.
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To purchase an Azure OpenAI reservation, you choose an Azure region, quantity, and the deployment type that you want covered. Then add the Azure OpenAI SKU (Global, Data Zone, or Regional) to your cart. Then verify the quantity of provisioned throughput units that you want to purchase and complete your order.
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When you purchase a reservation, the Azure OpenAI provisioned throughput usage that matches the reservation attributes is no longer charged at the hourly rates.
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>[!NOTE]
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>Reservations for Global, Managed Area (Data Zone), and Regional deployments aren't interchangeable. You need to purchase a separate reservation for each deployment type. For more information about transitioning provisioned deployments, see [Transition Azure OpenAI provisioned deployments](transition-azure-openai-provisioned-deployments.md).
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>Reservations for Global, Data Zone, and Regional deployments aren't interchangeable. You need to purchase a separate reservation for each deployment type. For more information about transitioning provisioned deployments, see [Transition Azure OpenAI provisioned deployments](transition-azure-openai-provisioned-deployments.md).
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For pricing information, see the [Azure OpenAI Service pricing](https://azure.microsoft.com/pricing/details/cognitive-services/openai-service/) page.
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- For pay-as-you-go customers, the shared scope is all pay-as-you-go subscriptions created by the account administrator.
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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. The management group scope applies to all subscriptions throughout the entire management group hierarchy. To buy a reservation for a management group, you must have at least read permission on the management group and be a reservation owner or reservation purchaser on the billing subscription.
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5. Select a region to choose an Azure region that gets covered by the reservation.
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6. Select the products to cover your deployment type (Global, Managed Area (Data Zone), or Regional) and select **Add to cart**.
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6. Select the products to cover your deployment type (Global, Data Zone, or Regional) and select **Add to cart**.
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:::image type="content" source="./media/azure-openai/select-provisioned-throughput.png" border="true" alt-text="Screenshot showing the Select product to purchase page." lightbox="./media/azure-openai/select-provisioned-throughput.png" :::
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7. In the cart, choose the quantity of provisioned throughput units that you want to purchase. For example, a quantity of 64 would cover up to 64 deployed provisioned throughput units every hour.
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8. Select **Next: Review + Buy** and review your purchase choices and their prices.
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After you buy a reservation for Azure OpenAI, the discount associated with the reservation automatically gets applied to any units that are deployed in the specified region, as long as they fall within the scope of the reservation. The reservation discount applies to the usage emitted by the provisioned throughput pay-as-you-go meters.
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>[!NOTE]
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>Reservations for Global, Managed Area (Data Zone), and Regional deployments aren't interchangeable. You must purchase a separate reservation for each deployment type.
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>Reservations for Global, Data Zone, and Regional deployments aren't interchangeable. You must purchase a separate reservation for each deployment type.
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### Reservation discount application
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articles/cost-management-billing/reservations/transition-azure-openai-provisioned-deployments.md

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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: 11/26/2024
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ms.date: 12/02/2024
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ms.author: banders
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#customer intent: As a reservation admin, I want to understand how to transition to Azure OpenAI provisioned deployment reservations so that I can manage my resources effectively.
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# Transition to Azure OpenAI provisioned deployment reservations
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Azure introduced new Global and Managed Area (Data Zone) provisioned deployment reservations for Azure OpenAI. These new options provide more flexibility and scalability, allowing you to access the models you need and scale Provisioned Throughput Units (PTUs) to support usage growth. Additionally, Microsoft announced lower hourly prices and smaller deployment minimums for the new deployment types, although the prices for monthly and yearly reservations remain unchanged.
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Azure introduced new Global and Data Zone provisioned deployment reservations for Azure OpenAI. These new options provide more flexibility and scalability, allowing you to access the models you need and scale Provisioned Throughput Units (PTUs) to support usage growth. Additionally, Microsoft announced lower hourly prices and smaller deployment minimums for the new deployment types, although the prices for monthly and yearly reservations remain unchanged.
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With these changes, Azure expects to better serve your evolving needs. If you're currently using Regional provisioned deployments, you might find that transitioning to Global or Managed Area (Data Zone) provisioned deployments offers significant benefits. This guide helps you understand the transition process, including how to migrate your applications and deployments and how to transition any existing reservations that cover the deployments.
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With these changes, Azure expects to better serve your evolving needs. If you're currently using Regional provisioned deployments, you might find that transitioning to Global or Data Zone provisioned deployments offers significant benefits. This guide helps you understand the transition process, including how to migrate your applications and deployments and how to transition any existing reservations that cover the deployments.
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## Changes to Azure OpenAI provisioned deployments
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- In September 2024, Azure launched Global provisioned deployment reservations.
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- In December 2024, Azure launched Managed Area (Data Zone) provisioned deployment reservations.
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- Although most customers are currently on Regional provisioned deployments, the Global and Managed Area (Data Zone) provisioned deployments might better suit your needs if you want to:
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- In December 2024, Azure launched Data Zone provisioned deployment reservations.
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- Although most customers are currently on Regional provisioned deployments, the Global and Data Zone provisioned deployments might better suit your needs if you want to:
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- Access the model that you need.
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- Scale PTUs to support your usage growth.
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- For Global and Managed Area (Data Zone) provisioned deployments, Microsoft [announced](https://azure.microsoft.com/blog/accelerate-scale-with-azure-openai-service-provisioned-offering/) lower hourly prices and smaller deployment minimums. There's no change to the price for monthly and yearly reservations with that announcement.
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- With the launch of the Global and Managed Area (Data Zone) provisioned deployments, Azure now offers services that better serve your evolving needs.
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- For pricing information, see the [Azure OpenAI Service pricing](https://azure.microsoft.com/pricing/details/cognitive-services/openai-service/) page.
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- For Global and Data Zone provisioned deployments, Microsoft [announced](https://azure.microsoft.com/blog/accelerate-scale-with-azure-openai-service-provisioned-offering/) lower hourly prices and smaller deployment minimums. There's no change to the price for monthly and yearly reservations with that announcement.
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- With the launch of the Global and Data Zone provisioned deployments, Azure now offers services that better serve your evolving needs.
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<!-- - For pricing information, see the [Azure OpenAI Service pricing](https://azure.microsoft.com/pricing/details/cognitive-services/openai-service/) page. -->
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## Transition from Regional to Global or Data Zone provisioned deployments
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If you want to move from Regional provisioned deployment to Global or Managed Area (Data Zone) deployments, you need to migrate your application or deployments on the service side. And you need to transition reservations, if any, that cover those deployments.
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If you want to move from Regional provisioned deployment to Global or Data Zone deployments, you need to migrate your application or deployments on the service side. And you need to transition reservations, if any, that cover those deployments.
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### Transition Azure OpenAI deployments from Regional to Global or Data Zone
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If you use existing Azure OpenAI Regional Provisioned deployments, there are two options to transition to the Managed Area (Data Zone) or Global Provisioned deployment types:
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If you use existing Azure OpenAI Regional Provisioned deployments, there are two options to transition to the Data Zone or Global Provisioned deployment types:
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### Option 1 - No downtime
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1. Create a new deployment using the Azure OpenAI Global Provisioned or Managed Area (Data Zone) Provisioned deployment type in the desired Azure OpenAI resource.
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2. Transition traffic from the existing Azure OpenAI Regional Provisioned deployment to the newly created Azure OpenAI Global or Managed Area (Data Zone) provisioned deployment until all traffic is offloaded from the Regional Provisioned deployment.
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1. Create a new deployment using the Azure OpenAI Global Provisioned or Data Zone Provisioned deployment type in the desired Azure OpenAI resource.
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2. Transition traffic from the existing Azure OpenAI Regional Provisioned deployment to the newly created Azure OpenAI Global or Data Zone provisioned deployment until all traffic is offloaded from the Regional Provisioned deployment.
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3. Delete the existing Regional Provisioned deployment.
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### Option 2 – Has downtime
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1. Ensure all Azure OpenAI API requests are stopped on the Azure OpenAI Regional Provisioned deployment.
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2. Delete the existing Regional Provisioned deployment.
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3. Create a new deployment using the Azure OpenAI Global Provisioned or Managed Area (Data Zone) Provisioned deployment type in the desired Azure OpenAI resource.
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3. Create a new deployment using the Azure OpenAI Global Provisioned or Data Zone Provisioned deployment type in the desired Azure OpenAI resource.
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## Transition Azure OpenAI provisioned reservations from Regional to Global or Data Zone
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- First, you must decide how many PTUs you want to retain on the Provisioned Regional deployment. Then decide how many PTUs to move to the provisioned Global or Managed Area (Data Zone) deployments.
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- First, you must decide how many PTUs you want to retain on the Provisioned Regional deployment. Then decide how many PTUs to move to the provisioned Global or Data Zone deployments.
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- Of these deployments, you need to decide how many need to get covered by reservations to get the discounted price.
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- Reservations for Global, Managed Area (Data Zone), and Regional deployments aren't inter-changeable. You need to purchase a separate reservation for each deployment type.
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- When you have existing Regional provisioned deployments and want to transition to Global or Managed Area (Data Zone) provisioned deployments, both types of deployments might need to exist for a brief time period to migrate your applications. It results in you right-sizing your Regional provisioned deployments.
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- Based on your desired end state (deployments across Regional, Managed Area (Data Zone), and Global), you need to cancel your existing reservations and purchase new reservations that cover your deployments.
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- Reservations for Global, Data Zone, and Regional deployments aren't inter-changeable. You need to purchase a separate reservation for each deployment type.
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- When you have existing Regional provisioned deployments and want to transition to Global or Data Zone provisioned deployments, both types of deployments might need to exist for a brief time period to migrate your applications. It results in you right-sizing your Regional provisioned deployments.
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- Based on your desired end state (deployments across Regional, Data Zone, and Global), you need to cancel your existing reservations and purchase new reservations that cover your deployments.
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- It could result in one of two scenarios:
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- Overlap of existing and newly purchased reservations, resulting in getting charged for both.
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- Time period between cancellation of existing reservations and purchasing new reservations, resulting in deployments being charged at the hourly rate (instead of a reservation price, because there wouldn’t be any reservations covering those deployments).
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- Avoid hourly charges for deployments by ensuring that all deployments have a matching reservation.
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- Avoid purchasing reservations ahead of time to prevent charges for deployments that aren’t active yet.
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- Cancel reservations that don’t cover any deployments.
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- Existing Provisioned Regional reservation cancellation is approved when you buy new Global or Managed Area (Data Zone) reservations to replace or exchange your existing reservations.
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- Existing Provisioned Regional reservation cancellation is approved when you buy new Global or Data Zone reservations to replace or exchange your existing reservations.
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>[!NOTE]
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>Cancellations are supported for a limited time. You should stop auto renewals for your Provisioned Regional Reservations if want to transition to Global or Managed Area (Data Zone) reservations.
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>Cancellations are supported for a limited time. You should stop auto renewals for your Provisioned Regional Reservations if want to transition to Global or Data Zone reservations.
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### Scenario 1 - Annual reservations
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1. Cancel your existing Provisioned Regional reservations for the number of PTUs that you want to transition to Global or Managed Area (Data Zone).
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2. To cover the deployments that you want to transition, purchase corresponding Global or Managed Area (Data Zone) reservations.
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1. Cancel your existing Provisioned Regional reservations for the number of PTUs that you want to transition to Global or Data Zone.
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2. To cover the deployments that you want to transition, purchase corresponding Global or Data Zone reservations.
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For example, assume you have 300 PTUs on the Regional deployment. You decide to transition 200 PTUs to Managed Area (Data Zone) deployment and keep the remaining 100 on Regional deployment. Also, assume that you have one or more reservations to cover all of the 300 existing Regional deployments.
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For example, assume you have 300 PTUs on the Regional deployment. You decide to transition 200 PTUs to Data Zone deployment and keep the remaining 100 on Regional deployment. Also, assume that you have one or more reservations to cover all of the 300 existing Regional deployments.
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1. To consolidate and realign reservations, your need to cancel your existing reservations for 300 PTUs.
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2. To cover the 200 Managed Area (Data Zone) deployments, purchase a Managed Area (Data Zone) reservation.
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2. To cover the 200 Data Zone deployments, purchase a Data Zone reservation.
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3. Purchase a Regional reservation to cover the 100 Regional deployments.
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3. If you think there’s an error or a credit due, you can [create a support request](https://portal.azure.com/#blade/Microsoft_Azure_Support/HelpAndSupportBlade/newsupportrequest).
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**Option 1** - Recommended for a single monthly reservation
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2. To consolidate and realign reservations, purchase corresponding Global, Managed Area (Data Zone), or Regional reservations. They cover the deployments that you want to transition to.
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2. To consolidate and realign reservations, purchase corresponding Global, Data Zone, or Regional reservations. They cover the deployments that you want to transition to.
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For example, assume you have 300 PTUs on the Regional deployment. You decide to transition 200 PTUs to Managed Area (Data Zone) deployment and keep the remaining 100 on Regional deployment. Also, assume that you have a single reservation to cover all of the 300 existing Regional deployments.
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For example, assume you have 300 PTUs on the Regional deployment. You decide to transition 200 PTUs to Data Zone deployment and keep the remaining 100 on Regional deployment. Also, assume that you have a single reservation to cover all of the 300 existing Regional deployments.
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1. To realign reservations, you need to stop auto renewal of the existing reservation that covers the 300 PTUs.
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2. On the same or following day that a reservation expires, buy a Managed Area (Data Zone) reservation to cover the 200 Managed Area (Data Zone) deployments. Purchase a Regional reservation to cover the 100 Regional deployments.
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2. On the same or following day that a reservation expires, buy a Data Zone reservation to cover the 200 Data Zone deployments. Purchase a Regional reservation to cover the 100 Regional deployments.
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3. Timing the new purchases correctly helps avoid overlap in reservations or being charged at the hourly pay-as-you-go rates.
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3. If you think there’s an error or a credit due, you can [create a support request](https://portal.azure.com/#blade/Microsoft_Azure_Support/HelpAndSupportBlade/newsupportrequest).
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## Important information
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>[!WARNING]
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>If you cancel your current PTU reservations but don't purchase the new Global or Managed Area (Data Zone) PTU reservations, then all of your PTU deployments get charged at the hourly price.
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>If you cancel your current PTU reservations but don't purchase the new Global or Data Zone PTU reservations, then all of your PTU deployments get charged at the hourly price.
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You can cancel reservations yourself if the amount is less than or equal to $50,000. Otherwise, you must contact Azure support to request cancellation. To contact support for cancellations, see [create a support request](https://portal.azure.com/#blade/Microsoft_Azure_Support/HelpAndSupportBlade/newsupportrequest).
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Cancellations are supported for a limited time. You should stop auto renewals for your Provisioned Regional Reservations if you want to transition to Global or Managed Area (Data Zone) reservations.
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Cancellations are supported for a limited time. You should stop auto renewals for your Provisioned Regional Reservations if you want to transition to Global or Data Zone reservations.
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## Related content
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