Introducing Azure Reserved VM Instances (RIs)

@20aman    Nov 12, 2017

Azure Reserved VM Instances provides an easy option to save cost for predictive workloads. You commit to either one or three year options and pay the complete cost with discounts upfront.

When should you use this

If you know that your workload will be up and running then Azure Reserved VM instances are for you. The savings can be up to 72% with the use of Reserved VM instances. If your VM is not going to be up and running for most time and you have the option to automate and shut down the Virtual Machine then you don't need Reserved VM Instances.

How does the cost savings look like

The cost savings can be very significant especially when clubbed with Azure Hybrid Use Benefit. The below graphic is based on a Dv2 three-year RI with Azure Hybrid Benefit.

Potential Savings with Azure Reserved VM Instances

Other aspects

Other aspects of Azure Reserved VM Instances that you need to know are:

  • You can assign RI benefit at either the enrollment level or at the subscription level
  • The assignment is as easy as providing the Region, VM Series/size and providing the term. The two terms offered today are 1 year and 3 years
  • You can exchange to a new instance and location as you need in the future
  • You also have the option to cancel anytime directly with Microsoft for a pro-rated refund

Reference: Azure Reserved VM Instances

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