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Cloud Computing · Foundational

Azure Reservations

Azure commitment of 1 or 3 years to specific resources such as VMs or SQL compute in a region in exchange for large discounts.

Definition

Reservations provide discounts of up to about 72 percent versus pay-as-you-go and apply automatically to matching usage within their scope. Reserved VM instances include instance size flexibility within a series, and exchanges and limited refunds are allowed under policy.

Example

A company buys a 3-year reservation for D-series VMs that run 24x7 for its line-of-business app.

Exam tip

Reservations suit stable, predictable workloads; the savings plan suits dynamic workloads that change VM families or regions.

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