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articles/storage/files/files-reserve-capacity.md

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# Optimize costs for Azure Files with reservations
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You can save money on the storage costs for Azure file shares with reservations. Azure Files reservations offer you a discount on capacity for storage costs when you commit to a reservation for either one year or three years. A reservation provides a fixed amount of storage capacity for the term of the reservation.
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You can save money on the storage costs for Azure file shares with reservations. Azure Files reservations (also referred to as *reserved instances*) offer you a discount on capacity for storage costs when you commit to a reservation for either one year or three years. A reservation provides a fixed amount of storage capacity for the term of the reservation.
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Azure Files reservations can significantly reduce your capacity costs for storing data in your Azure file shares. How much you save will depend on the duration of your reservation, the total storage capacity you choose to reserve, and the tier and redundancy settings that you've chosen for your Azure file shares. Reservations provide a billing discount and don't affect the state of your Azure file shares.
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articles/storage/files/files-whats-new.md

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### 2021 quarter 2 (April, May, June)
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#### Premium, hot, and cool storage reservations
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Azure Files supports storage reservations (also referred to as *reserve instances*). Reservations allow you to achieve a discount on storage by pre-committing to storage utilization. Azure Files supports reservations on the premium, hot, and cool tiers. Reservations are sold in units of 10 TiB or 100 TiB, for terms of either one year or three years.
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Azure Files supports storage reservations (also referred to as *reserved instances*). Reservations allow you to achieve a discount on storage by pre-committing to storage utilization. Azure Files supports reservations on the premium, hot, and cool tiers. Reservations are sold in units of 10 TiB or 100 TiB, for terms of either one year or three years.
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For more information, see:
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articles/storage/files/understanding-billing.md

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- **What are the costs of value-added products, like backup, security, etc.?** Azure Files supports integrations with multiple first- and third-party [value-added services](#value-added-services). Value-added services such as Azure Backup, Azure File Sync, and Azure Defender provide backup, replication and caching, and security functionality for Azure Files. Value-added solutions, whether on-premises or in the cloud, have their own licensing and product costs, but are often considered part of the total cost of ownership for file storage.
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## Reservations
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Azure Files supports reservations, which enable you to achieve a discount on storage by pre-committing to storage utilization. You should consider purchasing reserved instances for any production workload, or dev/test workloads with consistent footprints. When you purchase a reservation, you must specify the following dimensions:
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Azure Files supports reservations (also referred to as *reserved instances*), which enable you to achieve a discount on storage by pre-committing to storage utilization. You should consider purchasing reserved instances for any production workload, or dev/test workloads with consistent footprints. When you purchase a reservation, you must specify the following dimensions:
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- **Capacity size**: Reservations can be for either 10 TiB or 100 TiB, with more significant discounts for purchasing a higher capacity reservation. You can purchase multiple reservations, including reservations of different capacity sizes to meet your workload requirements. For example, if your production deployment has 120 TiB of file shares, you could purchase one 100 TiB reservation and two 10 TiB reservations to meet the total capacity requirements.
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- **Capacity size**: Reservations can be for either 10 TiB or 100 TiB, with more significant discounts for purchasing a higher capacity reservation. You can purchase multiple reservations, including reservations of different capacity sizes to meet your workload requirements. For example, if your production deployment has 120 TiB of file shares, you could purchase one 100 TiB reservation and two 10 TiB reservations to meet the total storage capacity requirements.
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- **Term**: Reservations can be purchased for either a one-year or three-year term, with more significant discounts for purchasing a longer reservation term.
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- **Tier**: The tier of Azure Files for the reservation. Reservations for Azure Files currently are available for the premium, hot, and cool tiers.
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- **Location**: The Azure region for the reservation. Reservations are available in a subset of Azure regions.
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There are differences in how reservations work with Azure file share snapshots for standard and premium file shares. If you're taking snapshots of standard file shares, then the snapshot differentials count against the reservation and are billed as part of the normal used storage meter. However, if you're taking snapshots of premium file shares, then the snapshots are billed using a separate meter and don't count against the reservation. For more information, see [Snapshots](#snapshots).
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For more information on how to purchase storage reservations, see [Optimize costs for Azure Files with reservations](files-reserve-capacity.md).
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For more information on how to purchase reservations, see [Optimize costs for Azure Files with reservations](files-reserve-capacity.md).
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## Provisioned model
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Azure Files uses a provisioned model for premium file shares. In a provisioned billing model, you proactively specify to the Azure Files service what your storage requirements are, rather than being billed based on what you use. A provisioned model for storage is similar to buying an on-premises storage solution because when you provision an Azure file share with a certain amount of storage capacity, you pay for that storage capacity regardless of whether you use it or not. Unlike purchasing physical media on-premises, provisioned file shares can be dynamically scaled up or down depending on your storage and IO performance characteristics.

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