Hello Rohit Kundra,
Welcome to Microsoft Q&A Platform, thanks for posting your query here.
Yes, you can apply Azure Reservations to existing resources, so you do not need to create the service from scratch.
You don't assign that reservation to specific VM, the discount is applied at the subscription level (or shared subscription level) automatically.
The reservation discount applies to the resource usage that matches the attributes you select when you buy the reservation.
The actual number of your VM instances that get the discount depend on the scope and quantity selected.
Please refer this document on Reservation Scoping.
Please refer the below documents:
How the Azure reservation discount is applied to virtual machines
https://learn.microsoft.com/en-us/azure/virtual-machines/reserved-vm-instance-size-flexibility
https://learn.microsoft.com/en-us/azure/cost-management-billing/reservations/manage-reserved-vm-instance
https://learn.microsoft.com/en-us/azure/cost-management-billing/reservations/reservation-discount-application
Hope this helps.
If you need further help on this, tag me in a comment.
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