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Merge pull request #245512 from bandersmsft/exchange-policy-chagne
MCM - Update for GH issue 111877
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articles/cost-management-billing/reservations/reservation-exchange-policy-changes.md

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ms.service: cost-management-billing
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ms.subservice: reservations
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ms.topic: conceptual
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ms.date: 04/14/2023
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ms.date: 07/19/2023
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# Changes to the Azure reservation exchange policy
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Microsoft launched Azure savings plan for compute and it's designed to help you save broadly on predictable compute usage. The savings plan provides more flexibility needed to accommodate changes such as virtual machine series and regions. With savings plans providing the flexibility automatically, we’re adjusting our reservations exchange policy.
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>[!NOTE]
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>Exchanges are changing only for the reservations explicitly mentioned previously. If you have any other type of reservation, then the policy change doesn't affect you. For example, if you have a reservation for Azure VMware Solution, then the policy change doesn't affect it. However, after January 1, 2024, if you exchange a reservation for a type affected by the policy change, the new reservation will be affected by the no-exchange policy.
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You can continue to use instance size flexibility for VM sizes, but Microsoft is ending exchanges for regions and instance series for these Azure compute reservations.
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The current cancellation policy for reserved instances isn't changing. The total canceled commitment can't exceed 50,000 USD in a 12-month rolling window for a billing profile or single enrollment.

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