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Azure bookings can save you money by pre-paying for one or three years of virtual machines, SQL database computing capacity, Azure Cosmos DB throughput or other Azure resources. Through prepayment, resources can be purchased at a discounted price. Booking can significantly reduce the cost of virtual machines, SQL database computing, Azure Cosmos DB, or other resources to 72% of the pay-as-you-go price. Bookings offer a billing discount and do not affect the runtime status of the resource. Reservations can be purchased in the Azure portal.

Why should I buy a reservation?

If you have a long-running virtual machine, Azure Cosmos DB or SQL database, then buying a reservation is the most affordable option. For example, if you continue to run four service instances, you will have to pay at a pay-as-you-go price without purchasing a reservation. If you purchase a reservation for these resources, you will receive a reservation discount immediately. These resources are no longer charged at pay-as-you-go rates.

What are the costs covered by the reservation? Virtual machine reservation instance: reservation only covers virtual machine computing cost. It does not cover other costs such as software, network, or storage. SQL database reservation vCore: reservation includes only calculated costs. The license is charged separately. Azure Cosmos DB reserved capacity: the reservation covers the cost of pre-allocated throughput for resources, but does not cover storage and network costs.

For Windows virtual machines and SQL databases, you can take advantage of Azure hybrid benefits to cover license fees.

Who is eligible to purchase reservations?

Azure customers can purchase subscriptions using the following subscription types:

Enterprise agreement subscription package type (MS-AZR-0017P or MS-AZR-0148P). Pay-as-you-go subscription package type (MS-AZR-003P or MS-AZR-0023P). Cloud solution provider (CSP) partners can purchase Azure bookings using the Azure Portal or partner Central.

Booking discounts apply only to resources associated with enterprise, pay-as-you-go, or CSP subscription types.

To purchase a program:

You must have at least one enterprise or pay-as-you-go subscription owner role. How are reserved items charged?

Reservation payment is made through a payment method bound to the subscription. If the subscription is an Enterprise subscription, the virtual machine reserved instance fee is deducted from the monetary commitment balance. If the currency commitment balance is insufficient to cover the fee for the virtual machine reserved instance, you will also be charged for the fee owed. If the subscription is a pay-as-you-go subscription, the charge will be deducted from the credit card in your account immediately. If the bill is paid, the fee will be displayed on the next bill.

How do I apply a reservation discount?

The reservation discount applies to resource usage that matches the features selected when purchasing the reservation. These features include the running scope of matching VM, SQL databases, Azure Cosmos DB, or other resources. For example, if you need a reservation discount for four standard D2 virtual machines in the U.S. West region, select the subscription where the running VM is located. "if the virtual machine is running in a different subscription to the registration / account, select the scope as the share." Sharing scope allows you to reserve discounts across subscription applications. The scope can be changed after purchasing the reservation. For more information, see Managing Azure subscriptions.

Booking discounts apply only to resources associated with enterprise, pay-as-you-go, or CSP subscription types. Resources of other product / service types running in the subscription cannot get booking discounts. What happens when the reservation period expires?

At the end of the booking period, the billing discount expires and virtual machines, SQL databases, Azure Cosmos DB, or other resources are charged at pay-as-you-go prices. Azure bookings are not automatically renewed. To continue to receive billing discounts, you must purchase new bookings for eligible services and software.

Discounts can be applied flexibly to different sizes according to instance size

When purchasing a reservation, the discount can be applied to other instances with attributes in the same large group. The flexibility of discount coverage depends on the type of reservation and the features you choose when you purchase the reservation.

Virtual machine reserved instances: when purchasing reservations, if you select "optimized object: instance size flexibility", the discount coverage will depend on the selected VM size. Subscriptions can be applied to virtual machine (VM) sizes in the same size series group. "for more information, see subscribe to virtual machine size flexibility for VM instances." SUSE Linux Enterprise Software Program: discount coverage depends on the vCPU of the VM running the SUSE software. SQL database reservation capacity: discount coverage depends on the selected performance tier. Azure Cosmos DB reserved capacity: discount coverage depends on preconfigured throughput.

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