You signed in with another tab or window. Reload to refresh your session.You signed out in another tab or window. Reload to refresh your session.You switched accounts on another tab or window. Reload to refresh your session.Dismiss alert
Azure savings plan purchase recommendations are provided through [Azure Advisor](../../advisor/advisor-reference-cost-recommendations.md#reserved-instances), and through the savings plan purchase experience in the Azure portal. The recommended commitment is calculated for the highest possible usage, and it's based on your historical usage. Your recommendation might not be for 100% utilization if you have inconsistent usage. To maximize savings with savings plans, try to purchase reservations as close to the recommendation as possible.
17
+
Azure savings plan purchase recommendations are provided through [Azure Advisor](../../advisor/advisor-reference-cost-recommendations.md#reserved-instances), and through the savings plan purchase experience in the Azure portal. The recommended commitment is calculated for the highest possible usage, and it's based on your historical usage. Your recommendation might not be for 100% utilization if you have inconsistent usage. To maximize savings with savings plans, try to make a savings plan commitment that's as close to the recommendation as possible.
18
18
19
19
The following steps define how recommendations are calculated:
20
20
21
-
1. The recommendation engine evaluates the hourly usage for your resources in the given scope over the past 7, 30, and 60 days.
21
+
1. The recommendation engine evaluates the hourly on-demand usage for your resources in the given scope over the past 7, 30, and 60 days. Usage covered by existing reservations or savings plans is excluded.
22
22
2. Based on the usage data, the engine simulates your costs with and without a savings plan.
23
23
3. The costs are simulated for different commitment amounts, and the commitment amount that maximizes the savings is recommended.
24
24
4. The recommendation calculations include any discounts that you might have on your on-demand usage rates.
25
25
26
26
## Purchase recommendations in the Azure portal
27
27
28
-
The savings plan purchase experience shows up to 10 commitment amounts. All recommendations are based on the last 30 days of usage. For each amount, we include the percentage (off of your current pay-as-you-go costs) that the amount could save you. The percentage of your total compute usage that would be covered with the commitment amount is also included.
28
+
The savings plan purchase experience shows up to 10 commitment amounts. All recommendations are based on the last 30 days of usage. For each amount, we include the percentage (off your current pay-as-you-go costs) that the amount could save you. The percentage of your total compute usage that would be covered with the commitment amount is also included.
29
29
30
30
By default, the recommendations are for the entire billing scope (billing account or billing profile for MCA and enrollment for EA). You can view subscription and resource group-level recommendations by restricting benefit application to one of those levels. We don't currently support management group-level recommendations.
31
31
@@ -54,7 +54,7 @@ The minimum value doesn't necessarily represent the hourly commitment necessary
54
54
When appropriate, a savings plan purchase recommendation can also be found in Azure Advisor. Keep in mind the following points:
55
55
56
56
- The savings plan recommendations are for a single-subscription scope. If you want to see recommendations for the entire billing scope (billing account or billing profile), then:
57
-
- In the Azure portal, navigate to Savings plans > **Add** and then select the type that you want to see the recommendations for.
57
+
- In the Azure portal, navigate to **Savings plans** > **Add** and then select the type that you want to see the recommendations for.
58
58
- Recommendations available in Advisor consider your past 30-day usage trend.
59
59
- The recommendation is for a three-year savings plan.
60
60
- The recommendation calculations include any special discounts that you might have on your on-demand usage rates.
Copy file name to clipboardExpand all lines: articles/cost-management-billing/savings-plan/savings-plan-compute-overview.md
+23-16Lines changed: 23 additions & 16 deletions
Display the source diff
Display the rich diff
Original file line number
Diff line number
Diff line change
@@ -1,5 +1,5 @@
1
1
---
2
-
title: What are Azure savings plans for compute?
2
+
title: What is Azure savings plans for compute?
3
3
titleSuffix: Microsoft Cost Management
4
4
description: Learn how Azure savings plans help you save money by committing an hourly spend for one-year or three-year plan for Azure compute resources.
Azure savings plans save you money when you have consistent usage of Azure compute resources. An Azure savings plan helps you save money by allowing you to commit to a fixed hourly spend on compute services for one-year or three-year terms. A savings plan can significantly reduce your resource costs by up to 65% from pay-as-you-go prices. Discount rates per meter vary by commitment term (1-year or 3-year), not commitment amount.
18
18
19
19
Each hour with savings plan, your compute usage is discounted until you reach your commitment amount – subsequent usage afterward is priced at pay-as-you-go rates. Savings plan commitments are priced in USD for Microsoft Customer Agreement and Microsoft Partner Agreement customers, and in local currency for Enterprise Agreement customers. Usage from compute services such as VMs, dedicated hosts, container instances, Azure premium functions, and Azure app services are eligible for savings plan discounts.
20
20
21
21
You can acquire a savings plan by making a new commitment, or you can trade in one or more active reservations for a savings plan. When you acquire a savings plan with a reservation trade in, the reservation is canceled. The prorated residual value of the unused reservation benefit is converted to the equivalent hourly commitment for the savings plan. The commitment may not be sufficient for your needs, and while you may not reduce it, you can increase it to cover your needs.
22
22
23
-
After you purchase a savings plan, the discount automatically applies to matching resources. Savings plans provide a billing discount and don't affect the runtime state of your resources.
24
-
25
-
You can pay for a savings plan up front or monthly. The total cost of up-front and monthly savings plan is the same and you don't pay any extra fees when you choose to pay monthly.
26
-
27
-
You can buy a savings plan in the Azure portal.
23
+
Currently, you can only acquire savings plans in the Azure portal. You can pay for a savings plan up front or monthly. The total cost of up-front and monthly savings plan is the same. You don't pay any extra fees when you choose to pay monthly. After you purchase a savings plan, the discount automatically applies to matching resources. Savings plans provide a billing discount and don't affect the runtime state of your resources.
28
24
29
25
## Why buy a savings plan?
30
26
31
27
If you have consistent compute spend, buying a savings plan gives you the option to reduce your costs. For example, when you continuously run instances of a service without a savings plan, you're charged at pay-as-you-go rates. When you buy a savings plan, your compute usage is immediately eligible for the savings plan discount. Your discounted rates add-up to the commitment amount. Usage covered by a savings plan receives discounted rates, not the pay-as-you-go rates.
32
28
33
-
## How savings plan discount is applied
29
+
## Decide between a savings plan and a reservation
30
+
31
+
Azure provides you with two ways to save on your usage by committing for one or three years. You have the freedom to choose the savings options that best align with your workload patterns.
32
+
33
+
With reservations, you commit to a specific virtual machine type in a particular Azure region. For example, a D2v4 VM in Japan East for one year. With Azure savings plan, you commit to spend a fixed hourly amount collectively on compute services. For example, $5.00/hour on compute services for one year. Reservations only apply to the identified compute service and region combination. Savings plan benefits are applicable to all usage from participating compute services across the globe, up to the hourly commitment.
34
+
35
+
For highly stable workloads that run continuously and where you have no expected changes to the machine series or region, consider a reservation. Reservations provide the greatest savings.
36
+
37
+
For dynamic workloads where you need to run different sized virtual machines or that frequently change datacenter regions, consider a compute savings plan. Savings plans provide flexible benefit application and automatic optimization.
38
+
39
+
## How savings plan discounts is applied
34
40
35
41
Almost immediately after purchase the savings plan benefit begins to apply without other action required by you. Every hour, we apply benefit to savings plan-eligible meters that are within the savings plan's scope. The benefits are applied to the meter with the greatest discount percentage first. Savings plan scope selects where the savings plan benefit applies.
36
42
37
43
For more information about how discount is applied, see [Savings plan discount application](discount-application.md).
38
44
39
45
For more information about how savings plan scope works, see [Scope savings plans](buy-savings-plan.md#scope-savings-plans).
40
46
41
-
## Determine what to purchase
47
+
## Determine your savings plan commitment
48
+
49
+
On-demand usage from compute services such as VMs, dedicated hosts, container instances, Azure premium functions, and Azure app services are eligible for savings plan benefits. It's important to consider your usage when you determine your hourly commitment. Azure provides [commitment recommendations](purchase-recommendations.md) based on usage from your last 30 days. The recommendations are found in:
42
50
43
-
Usage from compute services such as VMs, dedicated hosts, container instances, Azure premium functions and Azure app services are eligible for savings plan benefits. Consider savings plan purchases based on your consistent compute usage. You can determine your optimal commitment by analyzing your usage data or by using the savings plan recommendation. Recommendations are available in:
0 commit comments