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Cloud Computing · Intermediate

Azure Savings Plan for Compute

Azure pricing model committing to a fixed hourly spend on compute for 1 or 3 years to get discounts across services and regions.

Definition

The savings plan applies to eligible compute usage such as VMs, App Service, Azure Functions Premium and Container Instances across regions and families, offering savings of up to about 65 percent. Usage above the hourly commitment is billed at pay-as-you-go rates.

Example

A company commits $10 per hour and the discount applies whether workloads run on Dv5 VMs in East US or App Service in West Europe.

Exam tip

Savings plans trade some discount for flexibility compared with reservations.

Related terms