With azure reservations you pay less for virtual machines than with pay as you go pricing

The latest Microsoft AZ-900 Azure Fundamentals certification actual real practice exam question and answer (Q&A) dumps are available free, which are helpful for you to pass the Microsoft AZ-900 Azure Fundamentals exam and earn Microsoft AZ-900 Azure Fundamentals certification.

AZ-900 Question 301

Exam Question

An Azure resource group contains multiple Azure subscriptions.

A. Yes
B. No

Correct Answer

B. No

Explanation

Resource groups are logical containers for Azure resources. However, resource groups do not contain subscriptions. Subscriptions contain resource groups.

Reference

Microsoft 365 > Office 365 Enterprise > Tenant > Subscriptions, licenses, accounts, and tenants for Microsoft’s cloud offerings

AZ-900 Question 302

Exam Question

Azure free account has a spending limit

A. Yes
B. No

Correct Answer

A. Yes

AZ-900 Question 303

Exam Question

Azure free account has a limit for the amount of data that can be uploaded to Azure

A. Yes
B. No

Correct Answer

A. Yes

Explanation

5 GB Blob storage limit and 5 GB file storage limit.

AZ-900 Question 304

Exam Question

Azure free account can contain an unlimited number of web apps

A. Yes
B. No

Correct Answer

B. No

Explanation

Limit of 10 web, mobile or API apps.

AZ-900 Question 305

Exam Question

From the Azure portal, you can distinguish between services that are GA and services that are in public preview.

A. Yes
B. No

Correct Answer

A. Yes

AZ-900 Question 306

Exam Question

After an Azure service becomes GA, the service is no longer updated with new features.

A. Yes
B. No

Correct Answer

B. No

AZ-900 Question 307

Exam Question

When you create Azure resources for a service in public preview, you must recreate the resources once the service becomes GA.

A. Yes
B. No

Correct Answer

B. No

AZ-900 Question 308

Exam Question

With Azure Reservations, you pay less for VM that with pay-as-you-go pricing.

A. Yes
B. No

Correct Answer

A. Yes

AZ-900 Question 309

Exam Question

By copying several gigabits of data to Azure from an on-premises network over a VPN, additional data transfer costs are incurred.

A. Yes
B. No

Correct Answer

B. No

AZ-900 Question 310

Exam Question

By copying several GB of data from Azure to an on-premises network over a VPN, additional data transfer costs are incurred.

A. Yes
B. No

Correct Answer

A. Yes

Skip to main content

This browser is no longer supported.

Upgrade to Microsoft Edge to take advantage of the latest features, security updates, and technical support.

Buy a reservation

  • Article
  • 10/20/2022
  • 5 minutes to read

In this article

Azure Reservations help you save money by committing to one-year or three-years plans for many Azure resources. Before you enter a commitment to buy a reservation, be sure to review the following sections to prepare for your purchase.

Who can buy a reservation

To buy a reservation, you must have owner role or reservation purchaser role on an Azure subscription that's of type Enterprise (MS-AZR-0017P or MS-AZR-0148P) or Pay-As-You-Go (MS-AZR-0003P or MS-AZR-0023P) or Microsoft Customer Agreement. Cloud solution providers can use the Azure portal or Partner Center to purchase Azure Reservations.

Enterprise Agreement (EA) customers can limit purchases to EA admins by disabling the Add Reserved Instances option in the EA Portal. Direct EA customers can now disable Reserved Instance setting in Azure portal. Navigate to Policies menu to change settings.

EA admins must have owner or reservation purchaser access on at least one EA subscription to purchase a reservation. The option is useful for enterprises that want a centralized team to purchase reservations.

A reservation discount only applies to resources associated with subscriptions purchased through Enterprise, Cloud Solution Provider (CSP), Microsoft Customer Agreement and individual plans with pay-as-you-go rates.

Scope reservations

You can scope a reservation to a subscription or resource groups. Setting the scope for a reservation selects where the reservation savings apply. When you scope the reservation to a resource group, reservation discounts apply only to the resource group—not the entire subscription.

Reservation scoping options

You have four options to scope a reservation, depending on your needs:

  • Single resource group scope — Applies the reservation discount to the matching resources in the selected resource group only.
  • Single subscription scope — Applies the reservation discount to the matching resources in the selected subscription.
  • Shared scope — Applies the reservation discount to matching resources in eligible subscriptions that are in the billing context. If a subscription was moved to different billing context, the benefit will no longer be applied to this subscription and will continue to apply to other subscriptions in the billing context.
    • For Enterprise Agreement customers, the billing context is the enrollment. The reservation shared scope would include multiple Active Directory tenants in an enrollment.
    • For Microsoft Customer Agreement customers, the billing scope is the billing profile.
    • For individual subscriptions with pay-as-you-go rates, the billing scope is all eligible subscriptions created by the account administrator.
  • Management group — Applies the reservation discount to the matching resource in the list of subscriptions that are a part of both the management group and billing scope. To buy a reservation for a management group, you must have at least read permission on the management group and be a reservation owner or reservation purchaser on the billing subscription.

While applying reservation discounts on your usage, Azure processes the reservation in the following order:

  1. Reservations with a single resource group scope
  2. Reservations with a single subscription scope
  3. Reservations scoped to a management group
  4. Reservations with a shared scope (multiple subscriptions), described previously

You can always update the scope after you buy a reservation. To do so, go to the reservation, select Configuration, and rescope the reservation. Rescoping a reservation isn't a commercial transaction. Your reservation term isn't changed. For more information about updating the scope, see Update the scope after you purchase a reservation.

With azure reservations you pay less for virtual machines than with pay as you go pricing

Discounted subscription and offer types

Reservation discounts apply to the following eligible subscriptions and offer types.

  • Enterprise agreement (offer numbers: MS-AZR-0017P or MS-AZR-0148P)
  • Microsoft Customer Agreement subscriptions.
  • Individual plans with pay-as-you-go rates (offer numbers: MS-AZR-0003P or MS-AZR-0023P)
  • CSP subscriptions

Resources that run in a subscription with other offer types don't receive the reservation discount.

Purchase reservations

You can purchase reservations from Azure portal, APIs, PowerShell, CLI. Read the following articles that apply to you when you're ready to make a reservation purchase:

  • App Service
  • App Service - JBoss EA Integrated Support
  • Azure Backup
  • Azure Cache for Redis
  • Azure Data Factory
  • Azure Database for MariaDB
  • Azure Database for MySQL
  • Azure Database for PostgreSQL
  • Azure Blob storage
  • Azure Files
  • Azure VMware Solution
  • Azure Cosmos DB
  • Databricks
  • Data Explorer
  • Dedicated Host
  • Disk Storage
  • SAP HANA Large Instances
  • Software plans
  • SQL Database
  • Synapse Analytics - data warehouse
  • Synapse Analytics - Pre-purchase
  • Virtual machines
  • Virtual machine software

Buy reservations with monthly payments

You can pay for reservations with monthly payments. Unlike an up-front purchase where you pay the full amount, the monthly payment option divides the total cost of the reservation evenly over each month of the term. The total cost of up-front and monthly reservations is the same and you don't pay any extra fees when you choose to pay monthly.

If reservation is purchased using Microsoft customer agreement (MCA), your monthly payment amount may vary, depending on the current month's market exchange rate for your local currency.

Monthly payments are not available for: Databricks, Synapse Analytics - Pre-purchase, SUSE Linux reservations, Red Hat Plans and Azure Red Hat OpenShift Licenses.

View payments made

You can view payments that were made using APIs, usage data, and in cost analysis. For reservations paid for monthly, the frequency value is shown as recurring in usage data and Reservation Charges API. For reservations paid up front, the value is shown as onetime.

Cost analysis shows monthly purchases in the default view. Apply the purchase filter to Charge type and recurring for Frequency to see all purchases. To view only reservations, apply a filter for Reservation.

With azure reservations you pay less for virtual machines than with pay as you go pricing

Exchange and refunds

Like other reservations, you can refund or exchange reservations purchased with monthly billing.

When you exchange a reservation that's paid for monthly, the total lifetime cost of the new purchase should be greater than the leftover payments that are canceled for the returned reservation. There are no other limits or fees for exchanges. You can exchange a reservation that's paid for up front to purchase a new reservation that's billed monthly. However, the lifetime value of the new reservation should be greater than the prorated value of the reservation being returned.

If you cancel a reservation that's paid for monthly, canceled future payments accrue towards the $50,000 USD refund limit.

For more information about exchange and refunds, see Self-service exchanges and refunds for Azure Reservations.

Reservation notifications

Depending on how you pay for your Azure subscription, email reservation notifications are sent to the following users in your organization. Notifications are sent for various events including:

  • Purchase
  • Upcoming reservation expiration
  • Expiry
  • Renewal
  • Cancellation
  • Scope change

Notifications are sent to the following users:

  • Customers with EA subscriptions
    • Notifications are sent to the EA notification contacts, EA admin, reservation owners, and the reservation administrator.
  • Customers with Microsoft Customer Agreement (Azure Plan)
    • Notifications are sent to the reservation owners and the reservation administrator.
  • Cloud Solution Provider and new commerce partners
    • Emails are sent to the partner notification contact.
  • Individual subscription customers with pay-as-you-go rates
    • Emails are sent to users who are set up as account administrators, reservation owners, and the reservation administrator.

Next steps

  • Learn more about Reservations permissions
  • Manage Reservations for Azure resources
  • Automate using REST APIs
  • Automate using Azure PowerShell
  • Automate using CLI

Feedback

Submit and view feedback for

Is it true that whenever you opt for Azure reservations you then tend to pay less for virtual machines than the pay

Reservations can significantly reduce your resource costs by up to 72% from pay-as-you-go prices. Reservations provide a billing discount and don't affect the runtime state of your resources. After you purchase a reservation, the discount automatically applies to matching resources.

How the Azure reservation discount is applied to virtual machines?

The Azure reservation discount is applied to running VM instances on an hourly basis. The reservations that you have purchased are matched to the usage emitted by the running VMs to apply the reservation discount.

How are Azure reserved instances billed?

You can pay for Microsoft Azure Reserved Instances (RI) either up front (pay the full amount) or on a monthly basis. For RIs paid monthly, the total cost of the reservation is divided evenly over each month of the RI term (1 or 3 years).

Is Azure pay

Azure Pay-as-you-go pricing is an example of CapEx.