App Service Isolated Stamp Fee reservations

@Jjon-5981

There are two main offerings of Azure App Services. Multi-tenant web apps (anything on the free, shared, basic, standard, or premium tier) run in an environment where you share network appliances, storage devices, and other infrastructure, which allows you to run a web app on a low monthly cost.

The second offering, App Service Environments (ASE) v2, are a more premium offering of web apps that provide you with dedicated networking appliances, storage devices, dedicated front end workers, etc. By having these dedicated devices, there are a few additional capabilities in terms of configuration that you're offered. Since you are receiving dedicated devices to help build the infrastructure for your ASE, there is a base monthly cost called the App Service Isolated Stamp Fee., which makes the ASE a more costly route and may not be the right path for you unless you need the additional capabilities offered by an ASE. This fee is in addition to the cost you'll incur for the number and size of instances you run in the ASE. For more information on what the Isolated Stamp Fee would be for your Azure region/currency, please navigate to this document, dial in your region and currency and then read the "Isolated Service Plan" paragraph.

App Service Isolated Stamp Fee Reservation allows you to save money on the App Service Isolated Stamp Fee by pre-purchasing the underlying infrastructure for up to 3 years, allowing you to save up to 40%. For more information on this, please read this document. This reservation helps Microsoft to anticipate resource demand and as a result, savings are passed down to you.

If you currently have mutli-tenant web apps, you will need to migrate your content from the multitenant app service and into the App Service Environment. To do this, you can backup/restore, clone, or manually migrate your site content into the ASE.

Again, if you're using a multi-tenant web app, ASEs are not the way to go if you're trying to save money.

We are also proud to announce today that we are launching App Service Environment V3 in public preview, which has no monthly stamp fee. For more information on this, please see this blog post.

Just to add to the above, you could take advantage of RI pricing in normal App Service Plans instead of going over the the more expensive Isolated Plans....if shared network appliances, storage devices, and other infrastructure are not a problem for you. Since Nov 2020 it is also possible to apply 1-3 year Reservations to App Service V3 Premium plans. MS have also upgraded so the performance is much better, e.g. you can now easily from a P3 v2 to an P2 V3 to save even further costs an actually gain on performance.
The upgraded Premium plan, Premium v3, features faster processors, Hyper-V virtualization and support for VNet connectivity. The new Premium plan supports both containers - including generally available Windows Containers support - and code-based deployments and provides higher scale via increased vCPU, memory and instance counts. Prior generations of our Premium plan are still available for existing customers’ scaling needs. Beginning November 1, 2020, reservation pricing with one-year and three-year terms have been available for the new Premium v3 plans. If you have the requirement for the App Service for about 8 Months (between 5-8 Months is the Break Even rule of thumb for 1 year reservations but you can calculate this) and you do not need dedicated virtual networks (Company regulations?) or the other features Isolated App Service has then sticking to the general App Service Plans Pv3 with RIs will be a more cost effective option.