Pay as you go vs reserve capacity

Handian Sudianto 6,106 Reputation points
2022-12-05T05:55:16.193+00:00

HI..

What different between pay as you go and reserve instance / capacity?
How we can know if our VM using pay as you go or reserve instance?

Azure Virtual Machines
Azure Virtual Machines
An Azure service that is used to provision Windows and Linux virtual machines.
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  1. rafalzak 3,251 Reputation points
    2022-12-05T08:53:12.773+00:00

    Hi @Handian Sudianto ,

    As explained by @vipullag-MSFT reservations reduce cost of resources only and you will be charged by using the same credit card and subscription.
    You can check if your VM is using Reservation from Reservation dashboard:
    267191-image.png


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  1. vipullag-MSFT 26,492 Reputation points Moderator
    2022-12-05T05:59:45.357+00:00

    @Handian Sudianto

    Welcome to Microsoft Q&A Platform, thanks for posting your query here.

    If you purchase Azure Cloud Services are pay-as-you-go pricing then you will get few services for free and you will be billed monthly, for the services that you have utilized beyond free amount. In this model there is no upfront commitment and you can cancel anytime.

    However, Azure Reserved Virtual Machine Instances, significantly reduce costs—up to 72 percent1 compared to pay-as-you-go pricing—with one-year or three-year terms for Windows and Linux virtual machines (VMs).

    Purchase Azure Reserved VM Instances for one-year or three-year terms directly in the Azure portal with a single, upfront payment or monthly billing.

    Refer this document for faqs on reserved instances.

    Hope this helps.
    If you need further help on this, tag me in a comment.
    If the suggested response helped you resolve your issue, please 'Accept as answer', so that it can help others in the community looking for help on similar topics.


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