Azure reserved virtual machine instances gives the ability to purchase Azure compute resources with up to 43% or more savings for 3-year reservation.
Essentially what Microsoft did, was to listen to the customer’s needs for less cost and gave it through this service. What the customers did is to pre-purchase their VM for 1 or 3 years.

Info: This solution is good for customers who have a consistent base usage. This is for 24/7 workloads.

Subscription Account

To purchase reservations we must be owners for two kinds of subscriptions account :

Subscription Scope

There are two types of scope:

Shared, this reservation will apply across all of the subscriptions in the EA.
Single Subscription, this reservation will apply only to this specific subscription

Exchange Supported

An exchange is not prohibited if for a current reservation the new purchase is equal to or greater than the prorated credit from the original Azure Reserved VM Instances

Restrictions on Cancellations

There are two well-known cases for restrictions on a cancellation. These are:

  • If someone needs to cancel it he can do it with a 12% termination fee.
  • If need to cancel the purchase this can happen for a min and a max amount. Below, at the table, there is a minimum, maximum amount for Euro and Dollar currency.
CurrencyMinimum Amount / Per MonthMaximum Amount / Per Year
Euro€ 42.82€ 42.862,89
Dollar$ 50.00$50.000,00

*Note: Prices in Euro are subject to Euro/Dollar exchange rate.

Info: Operating system is not discounted by reservation, only applies to compute usage.

What is Azure Hybrid Benefit?

The reserved instance covers the infrastructure costs. The Windows software costs are covered by the Azure Hybrid Benefit. Any additional software is charged separately.

How Reserved VM Instances Works

Search for the service

From the main blade [All services] – type “Reservation” and click the Reservation service.

Create Reserved VM Instance

Click the button [Purchase Now], to Reserve VM instance

Fill in the required fields, as the below image shows, and click the button [Purchase].













NameThis is a predefined Name for the purchase
SubscriptionSelect the Subscription to apply the purchase on
ScopeChoose the scope for the purchase, select between share & single subscription
RegionSelect the Region for the Data Center
VM SizeChoose the VM Size
TermSelect the Term for the purchase, between 1 Year & 3 Years
QuantityType the VMs quantity

After we push the [Purchase] button a new blade opens as the below image shows.


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