Azure Reservations: How to Save Up to 72% on Your Azure Costs

Azure Reservations is a cost-saving feature in Microsoft Azure that allows customers to save up to 72% by committing to one-year or three-year terms for specific Azure resources. 

In addition to cost savings, Azure Reservations ensure predictable billing and guaranteed resource availability, which is particularly advantageous during periods of high demand in certain data centers. 

Azure data centers in the US have resource constraints due to high demand. Azure Reservations help mitigate this issue by guaranteeing resource availability. 

By reserving resources in advance, organizations can ensure they have the necessary capacity, avoiding potential disruptions caused by limited availability in busy data centers. 

Azure Reservations are ideal for businesses with predictable workloads, helping them to optimize budgets and maintain flexibility. 

Benefits of Azure Reservations 

One of the main benefits of Azure Reservations is cost savings, as the discounts can be substantial – as much as 72% compared to pay-as-you-go pricing. This fixed pricing over the reservation term helps with financial planning, providing budget predictability. 

Reservations also give you prioritized capacity, ensuring that your resources are available during periods of high demand.

Azure Reservations offer broad service coverage since reservations can be made for a wide range of services, including virtual machines, SQL databases, and Azure Cosmos DB throughput.

Best Practices for Using Azure Reservations 

To optimize cost management with Azure Reservations, follow these best practice:

• Regularly optimize spend by resizing or shutting down underutilized VMs.  
• Utilize Standard Storage for Managed Disks snapshots.  
• Reserve resources upfront for long-term planning, selecting one-year or three-year terms aligned with budget goals.  
• Easily purchase and manage reservations through the Azure portal
• Remember, reservations can be canceled or exchanged anytime for a new reservation of equal or greater value, though a fee may apply. 

Azure Reservations allows you to start with smaller reservations and scale up as you become more confident. This instance size flexibility allows you to adjust reservations to other VM sizes within the same family as your needs evolve.  

It's important to periodically review your reservations to ensure they continue to align with your current usage.  

Common Scenarios for Azure Reservations 

Azure Reservations are particularly useful for steady-state workloads, such as production environments with consistent usage.  

They are also beneficial for development and testing environments where resource usage can be predicted over the long term.  

Big data and analytics projects that require consistent use of large instances can also significantly benefit from Azure Reservations. 

Speak with an Expert About Azure Reservations 

If you want to see how Azure Reservations can help you: 

• Reduce cloud costs 
• Ensure resource availability 
• Optimize Azure spend 
• Maintain resource flexibility 

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