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Copy file name to clipboardExpand all lines: 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: 12/02/2024
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ms.date: 12/05/2024
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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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---
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# Save costs with Microsoft Azure OpenAI Service Provisioned Reservations
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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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You can save money on Azure OpenAI Service 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 Service 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, 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 Service reservation, you choose an Azure region, quantity, and the deployment type that you want covered. Then add the Azure OpenAI Service 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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When you purchase a reservation, the Azure OpenAI Service 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, 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 Service 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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## Reservation application
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A reservation applies to provisioned deployments only and doesn't include other offerings such as standard deployments or fine tuning. Azure OpenAI Service Provisioned Reservations also don't guarantee capacity availability. To ensure capacity availability, the recommended best practice is to create your deployments before you buy your reservation.
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When the reservation expires, Azure OpenAI deployments continue to run but are billed at the hourly rate.
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When the reservation expires, Azure OpenAI Service deployments continue to run but are billed at the hourly rate.
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## Renewal options
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You can choose to enable automatic renewal of reservations by selecting the option in the renewal settings or at time of purchase. With Azure OpenAI reservation auto renewal, the reservation renews using the same reservation order ID, and a new reservation doesn't get purchased. You can also choose to replace this reservation with a new reservation purchase in renewal settings and a replacement reservation is purchased when the reservation expires. By default, the replacement reservation has the same attributes as the expiring reservation. You can optionally change the name, billing frequency, term, or quantity in the renewal settings. Any user with owner access on the reservation and the subscription used for billing can set up renewal.
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You can choose to enable automatic renewal of reservations by selecting the option in the renewal settings or at time of purchase. With Azure OpenAI Service reservation auto renewal, the reservation renews using the same reservation order ID, and a new reservation doesn't get purchased. You can also choose to replace this reservation with a new reservation purchase in renewal settings and a replacement reservation is purchased when the reservation expires. By default, the replacement reservation has the same attributes as the expiring reservation. You can optionally change the name, billing frequency, term, or quantity in the renewal settings. Any user with owner access on the reservation and the subscription used for billing can set up renewal.
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## Prerequisites
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You can buy an Azure OpenAI reservation in the [Azure portal](https://portal.azure.com/#blade/Microsoft_Azure_Reservations/ReservationsBrowseBlade). Pay for the reservation [up front or with monthly payments](prepare-buy-reservation.md). To buy a reservation:
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You can buy an Azure OpenAI Service reservation in the [Azure portal](https://portal.azure.com/#blade/Microsoft_Azure_Reservations/ReservationsBrowseBlade). Pay for the reservation [up front or with monthly payments](prepare-buy-reservation.md). To buy a reservation:
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- You must have owner role or reservation purchaser role on an Azure subscription.
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- For Enterprise subscriptions, the **Reserved Instances** policy option must be enabled in the [Azure portal](../manage/direct-ea-administration.md#view-and-manage-enrollment-policies). If the setting is disabled, you must be an EA Admin to enable it.
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## Choose the right size and deployment type before purchase
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The Azure OpenAI reservation size should be based on the total provisioned throughput units that you consume via deployments. Reservation purchases are made in one provisioned throughput unit increments.
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The Azure OpenAI Service reservation size should be based on the total provisioned throughput units that you consume via deployments. Reservation purchases are made in one provisioned throughput unit increments.
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For example, assume you deployed 100 units of the Provisioned Regional deployment type and 50 units of Provisioned Global deployment type. In this example, you should purchase a Provisioned Managed Regional reservation for a quantity of 100 units and a Provisioned Managed Global reservation for a quantity of 50 units to cover all of your deployed PTUs.
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> [!CAUTION]
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> Capacity availability for model deployments is dynamic and changes frequently across regions and models. To prevent buying a reservation for more PTUs than you can use, create deployments first. Then buy the reservation to cover the PTUs you deployed. This best practice ensures that you maximize the reservation discount and helps to prevent you from purchasing a term commitment that you can’t fully use.
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## Buy a Microsoft Azure OpenAI reservation
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## Buy a Microsoft Azure OpenAI Service reservation
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When you buy a reservation, the current UTC date and time are used to record the transaction.
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To buy an Azure OpenAI reservation, follow these steps:
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To buy an Azure OpenAI Service reservation, follow these steps:
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1. Sign in to the [Azure portal](https://portal.azure.com/).
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2. Select **All services** > **Reservations** and then select **Azure OpenAI**
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2. Select **All services** > **Reservations** and then select **Azure OpenAI Service Provisioned**
3. Select a subscription. Use the Subscription list to choose the subscription that gets used to pay for the reservation. The payment method of the subscription is charged the costs for the reservation. The subscription type must be an enterprise agreement (offer numbers: MS-AZR-0017P or MS-AZR-0148P), Microsoft Customer Agreement, or pay-as-you-go (offer numbers: MS-AZR-0003P or MS-AZR-0023P).
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- For an enterprise subscription, the charges are deducted from the enrollment's Azure Prepayment (previously called monetary commitment) balance or charged as overage.
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You can cancel or refund reservations with certain limitations. For more information, see [Self-service exchanges and refunds for Azure Reservations](exchange-and-refund-azure-reservations.md).
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If you want to request a refund for your Azure OpenAI reservation, you can do so by following these steps:
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If you want to request a refund for your Azure OpenAI Service reservation, you can do so by following these steps:
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1. Sign in to the Azure portal and go to the Reservations page.
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2. Select the Azure OpenAI reservation that you want to refund and select **Return**.
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2. Select the Azure OpenAI Service reservation that you want to refund and select **Return**.
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3. On the Refund reservation page, review the refund amount and select a **Reason for return**.
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4. Select **Return reserved instance**.
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5. Review the terms and conditions and agree to them.
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The sum total of all canceled reservation commitment in your billing scope (such as EA, Microsoft Customer Agreement, and Microsoft Partner Agreement) can't exceed USD 50,000 in a 12-month rolling window.
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## How reservation discounts apply to Azure OpenAI
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## How reservation discounts apply to Azure OpenAI Service
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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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After you buy a reservation for Azure OpenAI Service, 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, 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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The application of the Azure OpenAI reservation is based on an hourly comparison between the reserved and deployed PTUs. The sum of deployed PTUs up-to the amount reserved are covered (paid for) via the reservation, while any deployed PTUs in excess of the reserved PTUs get charged at the hourly, pay-as-you-go rate. There are a few other points to keep in mind:
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The application of the Azure OpenAI Service reservation is based on an hourly comparison between the reserved and deployed PTUs. The sum of deployed PTUs up-to the amount reserved are covered (paid for) via the reservation, while any deployed PTUs in excess of the reserved PTUs get charged at the hourly, pay-as-you-go rate. There are a few other points to keep in mind:
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- PTUs for partial-hour deployments are pro-rated based on the number of minutes the deployment exists during the hour. For example, a 100 PTU deployment that exists for only 15 minutes of an hour period is considered as a 25 PTU deployment. Specifically, 15 minutes is 1/4 of an hour, so only 1/4 of the deployed PTUs are considered for billing and reservation application during that hour.
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- Deployments are matched to reservations based on the reservation scope before the reservation is applied. For example, a reservation scoped to a single subscription only covers deployments within that subscription. Deployments in other subscriptions are charged at the hourly pay-as-you-go rate, unless they're covered by other reservations that have them in scope.
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### Discount examples
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The following examples show how the Azure OpenAI reservation discount applies, depending on the deployments.
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The following examples show how the Azure OpenAI Service reservation discount applies, depending on the deployments.
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**Example 1** - A regional reservation that's exactly the same size as the regional deployed units. For example, you purchase 100 PTUs on a regional reservation and you deploy 100 regional PTUs. In this example, you only pay the reservation price.
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**Example 4** - A regional reservation that's the same size as the total of two regional deployments. For example, you purchase 200 regional PTUs on a reservation and you have two deployments of 100 regional PTUs each. In this example, the discount is applied to the sum of deployed units.
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## Increase Azure OpenAI reservation capacity
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## Increase Azure OpenAI Service reservation capacity
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You can't change the size of a purchased reservation. If you want to increase your Azure OpenAI reservation capacity to cover more hourly PTUs, you can buy more Azure OpenAI Service Provisioned reservations.
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You can't change the size of a purchased reservation. If you want to increase your Azure OpenAI Service reservation capacity to cover more hourly PTUs, you can buy more Azure OpenAI Service Provisioned reservations.
Copy file name to clipboardExpand all lines: articles/cost-management-billing/reservations/transition-azure-openai-provisioned-deployments.md
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title: Transition to OpenAI provisioned deployment reservations
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description: Learn about how to transition to Azure OpenAI provisioned deployment reservations, including new Global and data zone options.
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title: Transition to OpenAI Service provisioned deployment reservations
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description: Learn about how to transition to Azure OpenAI Service provisioned deployment reservations, including new Global and data zone options.
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author: bandersmsft
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ms.reviewer: kvuyyuru
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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: 12/03/2024
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ms.date: 12/05/2024
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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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#customer intent: As a reservation admin, I want to understand how to transition to Azure OpenAI Service provisioned deployment reservations so that I can manage my resources effectively.
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---
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# Transition to Azure OpenAI provisioned deployment reservations
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# Transition to Azure OpenAI Service provisioned deployment reservations
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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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Azure introduced new Global and Data Zone provisioned deployment reservations for Azure OpenAI Service. 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 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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## Changes to Azure OpenAI Service provisioned deployments
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- In September 2024, Azure launched Global provisioned deployment reservations.
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- In December 2024, Azure launched Data Zone provisioned deployment reservations.
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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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### Transition Azure OpenAI Service 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 Data Zone or Global Provisioned deployment types:
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If you use existing Azure OpenAI Service 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 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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1. Create a new deployment using the Azure OpenAI Service Global Provisioned or Data Zone Provisioned deployment type in the desired Azure OpenAI Service resource.
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2. Transition traffic from the existing Azure OpenAI Service Regional Provisioned deployment to the newly created Azure OpenAI Service 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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1. Ensure all Azure OpenAI Service API requests are stopped on the Azure OpenAI Service 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 Data Zone Provisioned deployment type in the desired Azure OpenAI resource.
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3. Create a new deployment using the Azure OpenAI Service Global Provisioned or Data Zone Provisioned deployment type in the desired Azure OpenAI Service resource.
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## Transition Azure OpenAI provisioned reservations from Regional to Global or Data Zone
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## Transition Azure OpenAI Service 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 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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