Prepay for Azure Database for PostgreSQL compute resources with reserved capacity

APPLIES TO: Azure Database for PostgreSQL - Single Server

Azure Database for PostgreSQL now helps you save money by prepaying for compute resources compared to pay-as-you-go prices. With Azure Database for PostgreSQL reserved capacity, you make an upfront commitment on PostgreSQL server for a one or three year period to get a significant discount on the compute costs. To purchase Azure Database for PostgreSQL reserved capacity, you need to specify the Azure region, deployment type, performance tier, and term.

How does the instance reservation work?

You don't need to assign the reservation to specific Azure Database for PostgreSQL servers. An already running Azure Database for PostgreSQL (or ones that are newly deployed) will automatically get the benefit of reserved pricing. By purchasing a reservation, you're pre-paying for the compute costs for a period of one or three years. As soon as you buy a reservation, the Azure database for PostgreSQL compute charges that match the reservation attributes are no longer charged at the pay-as-you go rates. A reservation does not cover software, networking, or storage charges associated with the PostgreSQL Database servers. At the end of the reservation term, the billing benefit expires, and the Azure Database for PostgreSQL are billed at the pay-as-you go price. Reservations do not auto-renew. For pricing information, see the Azure Database for PostgreSQL reserved capacity offering.

Important

Reserved capacity pricing is available for the Azure Database for PostgreSQL in Single server, Flexible Server, and Hyperscale Citus deployment options. For information about RI pricing on Hyperscale (Citus), see this page.

You can buy Azure Database for PostgreSQL reserved capacity in the Azure portal. Pay for the reservation up front or with monthly payments. To buy the reserved capacity:

  • You must be in the owner role for at least one Enterprise or individual subscription with pay-as-you-go rates.
  • For Enterprise subscriptions, Add Reserved Instances must be enabled in the EA portal. Or, if that setting is disabled, you must be an EA Admin on the subscription.
  • For Cloud Solution Provider (CSP) program, only the admin agents or sales agents can purchase Azure Database for PostgreSQL reserved capacity.

The details on how enterprise customers and Pay-As-You-Go customers are charged for reservation purchases, see understand Azure reservation usage for your Enterprise enrollment and understand Azure reservation usage for your Pay-As-You-Go subscription.

Reservation exchanges and refunds

You can exchange a reservation for another reservation of the same type, you can also exchange a reservation from Azure Database for PostgreSQL - Single Server with Flexible Server. It's also possible to refund a reservation, if you no longer need it. The Azure portal can be used to exchange or refund a reservation. For more information, see Self-service exchanges and refunds for Azure Reservations.

Reservation discount

You may save up to 65% on compute costs with reserved instances. In order to find the discount for your case, please visit the Reservation blade on the Azure portal and check the savings per pricing tier and per region. Reserved instances help you manage your workloads, budget, and forecast better with an upfront payment for a one-year or three-year term. You can also exchange or cancel reservations as business needs change.

Determine the right server size before purchase

The size of reservation should be based on the total amount of compute used by the existing or soon-to-be-deployed servers within a specific region and using the same performance tier and hardware generation.

For example, let's suppose that you are running one general purpose Gen5 – 32 vCore PostgreSQL database, and two memory-optimized Gen5 – 16 vCore PostgreSQL databases. Further, let's supposed that you plan to deploy within the next month an additional general purpose Gen5 – 8 vCore database server, and one memory-optimized Gen5 – 32 vCore database server. Let's suppose that you know that you will need these resources for at least one year. In this case, you should purchase a 40 (32 + 8) vCores, one-year reservation for single database general purpose - Gen5 and a 64 (2x16 + 32) vCore one year reservation for single database memory optimized - Gen5

Buy Azure Database for PostgreSQL reserved capacity

  1. Sign in to the Azure portal.
  2. Select All services > Reservations.
  3. Select Add and then in the Purchase reservations pane, select Azure Database for PostgreSQL to purchase a new reservation for your PostgreSQL databases.
  4. Fill in the required fields. Existing or new databases that match the attributes you select qualify to get the reserved capacity discount. The actual number of your Azure Database for PostgreSQL servers that get the discount depend on the scope and quantity selected.

Overview of reserved pricing

The following table describes required fields.

Field Description
Subscription The subscription used to pay for the Azure Database for PostgreSQL reserved capacity reservation. The payment method on the subscription is charged the upfront costs for the Azure Database for PostgreSQL reserved capacity reservation. The subscription type must be an enterprise agreement (offer numbers: MS-AZR-0017P or MS-AZR-0148P) or an individual agreement with pay-as-you-go pricing (offer numbers: MS-AZR-0003P or MS-AZR-0023P). For an enterprise subscription, the charges are deducted from the enrollment's Azure Prepayment (previously called monetary commitment) balance or charged as overage. For an individual subscription with pay-as-you-go pricing, the charges are billed to the credit card or invoice payment method on the subscription.
Scope The vCore reservation’s scope can cover one subscription or multiple subscriptions (shared scope). If you select:

Shared, the vCore reservation discount is applied to Azure Database for PostgreSQL servers running in any subscriptions within your billing context. For enterprise customers, the shared scope is the enrollment and includes all subscriptions within the enrollment. For Pay-As-You-Go customers, the shared scope is all Pay-As-You-Go subscriptions created by the account administrator.

Management group, the reservation discount is applied to Azure Database for PostgreSQL running in any subscriptions that are a part of both the management group and billing scope.

Single subscription, the vCore reservation discount is applied to Azure Database for PostgreSQL servers in this subscription.

Single resource group, the reservation discount is applied to Azure Database for PostgreSQL servers in the selected subscription and the selected resource group within that subscription.
Region The Azure region that’s covered by the Azure Database for PostgreSQL reserved capacity reservation.
Deployment Type The Azure Database for PostgreSQL resource type that you want to buy the reservation for.
Performance Tier The service tier for the Azure Database for PostgreSQL servers.
Term One year
Quantity The amount of compute resources being purchased within the Azure Database for PostgreSQL reserved capacity reservation. The quantity is a number of vCores in the selected Azure region and Performance tier that are being reserved and will get the billing discount. For example, if you are running or planning to run an Azure Database for PostgreSQL servers with the total compute capacity of Gen5 16 vCores in the East US region, then you would specify quantity as 16 to maximize the benefit for all servers.

Reserved instances API support

Use Azure APIs to programmatically get information for your organization about Azure service or software reservations. For example, use the APIs to:

  • Find reservations to buy
  • Buy a reservation
  • View purchased reservations
  • View and manage reservation access
  • Split or merge reservations
  • Change the scope of reservations

For more information, see APIs for Azure reservation automation.

vCore size flexibility

vCore size flexibility helps you scale up or down within a performance tier and region, without losing the reserved capacity benefit. If you scale to higher vCores than your reserved capacity, you will be billed for the excess vCores using pay-as-you-go pricing.

How to view reserved instance purchase details

You can view your reserved instance purchase details via the Reservations menu on the left side of the Azure portal. For more information, see How a reservation discount is applied to Azure Database for PostgreSQL.

Reserved instance expiration

You'll receive email notifications, first one 30 days prior to reservation expiry and other one at expiration. Once the reservation expires, deployed VMs will continue to run and be billed at a pay-as-you-go rate. For more information, see Reserved Instances for Azure Database for PostgreSQL.

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Next steps

The vCore reservation discount is applied automatically to the number of Azure Database for PostgreSQL servers that match the Azure Database for PostgreSQL reserved capacity reservation scope and attributes. You can update the scope of the Azure database for PostgreSQL reserved capacity reservation through Azure portal, PowerShell, CLI or through the API.

To learn more about Azure Reservations, see the following articles: