Introduction

Azure Reservations enable organizations to reduce cloud infrastructure costs by committing to one-year or three-year terms for eligible Azure resources. By pre-purchasing capacity at discounted rates, businesses can achieve significant savings compared to pay-as-you-go pricing while maintaining predictable budgeting.

Reservations are best suited for stable, long-running workloads with consistent usage patterns. They provide financial efficiency without requiring changes to application architecture or deployment models.

Key benefits include:

• Cost savings – Achieve discounted pricing compared to pay-as-you-go rates through long-term commitment.

• Predictable budgeting – Improve cost forecasting with fixed-term pricing.

• Optimized resource planning – Align long-term workload demand with committed capacity.

Azure Reservations for a cost management group can be accessed through the following navigation path:

Cost group → Optimization → Reservations

Reservation insights and recommendations are presented in multiple views, enabling users to evaluate purchase opportunities, coverage levels, and potential savings based on their usage patterns.

1. Basic recommendations

2. Advanced recommendations