updated to make a few things simpler to read

Author: yashesvi

articles/cost-management-billing/reservations/save-compute-costs-reservations.md

@@ -5,40 +5,53 @@ author: yashesvi
 ms.reviewer: yashar
 ms.service: cost-management-billing
 ms.topic: conceptual
-ms.date: 03/22/2020
+ms.date: 03/24/2020
 ms.author: banders
 ---
 
 # What are Azure Reservations?
 
-Azure Reservations help you save money by committing to one-year or three-years plans for virtual machines, Azure Blob storage or Azure Data Lake Storage Gen2, SQL Database compute capacity, Azure Disk Storage, Azure Cosmos DB throughput, or other Azure resources. Committing allows you to get a discount on the resources you use. Reservations can significantly reduce your resource costs up to 72% on pay-as-you-go prices. Reservations provide a billing discount and don't affect the runtime state of your resources.
+Azure Reservations help you save money by committing to one-year or three-years plans for multiple products. Committing allows you to get a discount on the resources you use. Reservations can significantly reduce your resource costs up to 72% on pay-as-you-go prices. Reservations provide a billing discount and don't affect the runtime state of your resources. After you purchase a reservation, the discount automaticaly applies to matching resources.
 
 You can pay for a reservation up front or monthly. The total cost of up-front and monthly reservations is the same and you don't pay any extra fees when you choose to pay monthly. Monthly payment is available for Azure reservations, not third-party products.
 
 You can buy a reservation in the [Azure portal](https://portal.azure.com/#blade/Microsoft_Azure_Reservations/ReservationsBrowseBlade).
 
 ## Why buy a reservation?
 
-If you have virtual machines, Blob storage data, Azure Cosmos DB, or SQL databases that use significant capacity or throughput, or that run for long periods of time, buying a reservation gives you the most cost-effective option. For example, when you continuously run four instances of a service without a reservation, you're charged at pay-as-you-go rates. When you buy a reservation for those resources, you immediately get the reservation discount. The resources are no longer charged at the pay-as-you-go rates.
+If you have consistent usage of resources that support reservations, buying a reservation gives you the option to reduce your costs. For example, when you continuously run instances of a service without a reservation, you're charged at pay-as-you-go rates. When you buy a reservation, you immediately get the reservation discount. The resources are no longer charged at the pay-as-you-go rates.
+
+## How reservation discount is applied
+
+After purchase, the reservation discount automaticaly applies to the resource usage that matches the attributes you select when you buy the reservation. Attributes include the SKU, regions (where applicable), and scope. Reservation scope selects where the reservation savings apply.
+
+For more information about how discount is applied, see [Reserved instance discount application](reservation-discount-application.md).
+For more information about how reservation scope works, see [Reserved instance discount application](https://docs.microsoft.com/en-us/azure/cost-management-billing/reservations/prepare-buy-reservation#scope-reservations).
 
-## Charges covered by reservation
 
-Service plans:
+## Flexibility with Azure reservations
 
-- **Reserved Virtual Machine Instance** - A reservation only covers the virtual machine compute costs. It doesn't cover additional software, networking, or storage charges.
+Azure Reservations provide flexibility to help meet your evolving needs. You can exchange a reservation for another reservation of the same type. You can also refund a reservation, up to $50,000 USD in a 12 month rolling window, if you no longer need it. The maximum limit of the refund applies to all reservations in the scope of your agreement with Microsoft.
+
+For more information, see [Self-service exchanges and refunds for Azure Reservations](exchange-and-refund-azure-reservations.md)
+
+
+## Charges covered by reservation
+
+- **Reserved Virtual Machine Instance** - A reservation only covers the virtual machine compute costs. It doesn't cover additional software, Windows, networking, or storage charges.
 - **Azure Storage reserved capacity** - A reservation covers storage capacity for standard storage accounts for Blob storage or Azure Data Lake Gen2 storage. The reservation doesn't cover bandwidth or transaction rates.
-- **Azure Disk Storage reservations** - A reservation only covers premium SSDs of P30 size or greater. It doesn't cover any other disk types or sizes smaller than P30.
 - **Azure Cosmos DB reserved capacity** - A reservation covers throughput provisioned for your resources. It doesn't cover the storage and networking charges.
-- **SQL Database reserved vCore** - Only the compute costs are included with a reservation. The license is billed separately.
+- **SQL Database reserved vCore** - Only the compute costs are included with a reservation. The SQL license is billed separately.
 - **SQL Data Warehouse** - A reservation covers cDWU usage. It doesn't cover storage or networking charges associated with the SQL Data Warehouse usage.
-- **App Service stamp fee** - A reservation covers stamp usage. It doesn't apply to workers, so any other resources associated with the stamp are charged separately.
 - **Azure Databricks** - A reservation covers only the DBU usage. Other charges, such as compute, storage, and networking, are applied separately.
+- **App Service stamp fee** - A reservation covers stamp usage. It doesn't apply to workers, so any other resources associated with the stamp are charged separately.
 - **Azure Database for MySQL** - Only the compute costs are included with a reservation. A reservation doesn't cover software, networking, or storage charges associated with the MySQL Database server.
 - **Azure Database for PostgreSQL** - Only the compute costs are included with a reservation. A reservation doesn't cover software, networking, or storage charges associated with the PostgreSQL Database servers.
 - **Azure Database for MariaDB** - Only the compute costs are included with a reservation. A reservation doesn't cover software, networking, or storage charges associated with the MariaDB Database server.
 - **Azure Data Explorer** - A reservation covers the markup charges. A reservation doesn't cover compute, networking, or storage charges associated with the clusters.
 - **Azure Cache for Redis** - Only the compute costs are included with a reservation. A reservation doesn't cover networking or storage charges associated with the Redis cache instances.
-- **Premium SSD Managed Disks** - A reservation is made for a specified disk SKU. 
+- **Azure Dedicated Host** - Only the compute costs are included with the Dedicatd host.
+- **Azure Disk Storage reservations** - A reservation only covers premium SSDs of P30 size or greater. It doesn't cover any other disk types or sizes smaller than P30.
 
 Software plans:
 
@@ -47,13 +60,8 @@ Software plans:
 - **Azure VMware Solution by CloudSimple** - A reservation covers the VMWare CloudSimple Nodes. Additional software costs still apply.
 - **Azure Red Hat OpenShift** - A reservation applies to the OpenShift costs, not to Azure infrastructure costs.
 
-For Windows virtual machines and SQL Database, you can cover the licensing costs with [Azure Hybrid Benefit](https://azure.microsoft.com/pricing/hybrid-benefit/).
-
-## How reservation discount is applied
-
-The reservation discount applies to the resource usage matching the attributes you select when you buy the reservation. Attributes include the scope where the matching VMs, SQL databases, Azure Cosmos DB, or other resources run. For example, if you want a reservation discount for four Standard D2 virtual machines in the West US region, then select the subscription where the VMs are running.
+For Windows virtual machines and SQL Database, reservation discount doesn't apply to the software costs. You can cover the licensing costs with [Azure Hybrid Benefit](https://azure.microsoft.com/pricing/hybrid-benefit/).
 
-For more information, see [Reserved instance discount application](reservation-discount-application.md).
 
 ## Need help? Contact us.