Azure Reservations monthly payments price change

Question

MS Documentation:"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."

Assuming the monthly reservation is fully applicable for the VM, what if the Azure retail pricing of a virtual machine changes (up or down) during the reservation period, does this have an impact on the monthly payment amount?

1. If the Azure retail price of the VM goes up, does the reservation still cover the full cost of the VM or is there a PAYG overage cost?
2. If the Azure retail price of the VM drops, is the reservation price still applicable and you loose some benefit?

Thanks for your help!

Regards, F.

Answer 1

Hello,

Reservation discounts are applied on top of Pay-as-you-go pricing. If you have an offer type like MCA/EA with specific discount pricing as part of agreement then the base rate of services differs based on the agreement. In such case, best option which has the most cost savings discount is applied.

When a reservation is purchased for a said term (1 or 3 years) the pricing will not change except for fx rate(exchange rate) depending on the currency.

Kind regards, Divya.