Understanding Azure Savings Plan for Compute

Understanding Azure Savings Plan for Compute focuses on the benefits and usage of Azure's flexible pricing model for compute services, which provides up to 65% off on a pay-as-you-go basis with fixed hourly commitment for 1 or 3 years. Buying a savings plan allows for cost reduction, especially when usage is from different resources or datacenter regions, making traditional reservations less effective. A savings plan covers only the compute cost, with software and other costs not included.

• Azure savings plan for compute doesn't affect the runtime state of resources.
• Savings plan discounts vary by meter and commitment term.
• The savings plan can be paid upfront or monthly with a similar total cost.
• Azure portal and Savings Plan Order Alias API can be used to purchase savings plans.

When purchasing a savings plan, consistent compute expenses and usage from different resources could lead to significant savings, as it allows for the discounting of hourly usage up to the commitment amount from the pay-as-you-go rates.

For it to apply, compute usage must match the scope, with the eligible resources discounted to fit into your hourly commitments. Usage above the commitment is billed at on-demand rates. VMs used with Azure Kubernetes Service (AKS) and Azure Virtual Desktop (AVD) are also eligible. Recommendations based on past usage, available in the Azure Advisor, can help in determining an appropriate commitment.

Specific products covered under a savings plan can be located in your price sheet, downloadable from the Azure portal. The price sheet doesn't include savings plan pricing, which can be obtained by filtering Price Type by Savings Plan. The savings plan is billed to the payment method associated with the subscription, and only permitted roles can purchase or manage savings plans. The savings plan order includes details and utilization after purchase and can be managed after purchase. However, cancellations and refunds are not allowed.

The plan only covers the compute costs associated with Virtual Machines, Azure Dedicated Hosts, Container Instances, Azure Premium Functions, Azure App Services (specific plans), and on-demand Capacity Reservation. Exclusions apply to the above services. It is important to note that software costs for Windows Virtual Machines and SQL Database are not covered. For any inquiries or difficulties, contact your account team or create a support request.

Greater Insights into Azure Savings Plan for Compute

Azure Savings Plan for Compute is a valuable tool for businesses operating on the Azure platform. It not only allows for efficient cost management but also contributes to maximizing resource usage. Consequently, businesses can focus more on growing their operations rather than on managing compute costs. Its flexibility allows for payments to be made monthly or upfront, providing businesses with options that best suit their cash flow. The coverage includes a range of services including VMs, making it ideal for diverse operations. However, its limitations such as not covering software costs, should be well understood to avoid any unexpected expenses.

Learn about Understanding Azure Savings Plan for Compute

The text discusses the Azure Savings Plan for compute which is a pricing model by Microsoft that offers up to 65% discounts on pay-as-you-go pricing for users who commit to a fixed hourly amount on compute services for one or three years. The commitment to a savings plan allows users to gain discounts up to their hourly commitment amount. The discounts offered by savings plans differ based on meter and commitment term rather than the commitment amount. Users can pay for their savings plan either up-front or monthly with both options amounting to the same cost. Users with consistent compute spend could benefit from buying a savings plan, especially if their usage comes from different resources or datacenter regions, as the savings plan offers them the chance to reduce their costs.

Azure savings plan applies savings automatically to compute usage matching the plan scope. The purchase of a savings plan covers only the compute part of usage, and charges for the savings plan do not include costs for Windows. Additionally, the savings plan provides a billing discount without affecting the runtime state of user resources.

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