What are Azure Reservations? - Microsoft Consulting Services - CloudServus - United States

Azure Reservations are a great way for our customers to save on their Azure spend, but it benefits Microsoft as well.  With Azure Reservations, Microsoft is asking you as the customer to forecast your upcoming 1-year or 3-year workload requirements.  Therefore, Reservations are effectively a ‘trade’ between Microsoft and you as the customer.

This ‘trade’ benefits both parties:

• Microsoft benefits by gaining visibility into your 1-year or 3-year resource needs in advance, and allows them to effectively plan their resources and be more efficient.
• For helping Microsoft gain this insight, you as the customer benefit by receiving discounts on your Azure spend.  Microsoft claims you can receive up to a 72% discount vs. pay-as-you go pricing.

When should I consider reservations?

Reservations are phenomenal for any workload where you can effectively forecast your requirements for the term specified.  We call this ‘predicted capacity’.  For these workloads with predicted capacity, it makes sense for you to offer your insight to Microsoft in return for a discount, as described above.

Where do I purchase reservations?

• Azure reservations are made in the Azure Portal*
• Simply navigate to the reservations page (All Services > Reservations)
• Select ‘Add’ to purchase a new reservation and enter the required fields

*Note:  If CloudServus is your Cloud Solution Provider (CSP), simply reach out to our team for assistance.

How do I pay for reservations?

• You have the choice of paying for reservations in 1 or 3 year terms
• You also have the choice of paying for reservations upfront or on a monthly basis
• Major Update:
  • Until now, Azure reservations required payment upfront
  • Now you can pay for reservations with monthly payments at no additional cost

Can I exchange or cancel my reservations?

Yes, absolutely.  You can easily do this at anytime, across regions or series as your workload or application needs change.  Note, Microsoft typically charges an early termination fee for cancelled reservations.

If you have any additional questions about Azure Reservations, please do not hesitate to reach out to our team.  We are here to help you maximize your Microsoft spend and strengthen your overall Microsoft stack.

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