What is Azure savings plan for compute?

  • 4 minutes

Azure savings plan for compute is a new pricing model. It allows eligible customers, such as your company, to commit to an hourly amount of money to be spent on eligible Azure compute services in exchange for lower prices. The plan provides you a convenient and flexible way to save up to 65% on the cost of compute services compared to pay-as-you-go prices. Savings-plan discounts are specific to each product and region combination, and are dependent on the commitment term (one-year or three-year), not the hourly commitment. You can also choose to pay the full commitment amount upfront or to pay monthly at no extra cost.

Diagram illustrating the pricing tiers for usage billed at pay-as-you-go versus savings plan depending on the hourly commitment.

As you use eligible compute services, their respective charges are covered by the plan at reduced prices, helping you get more value for your money. The savings apply automatically across compute usage regardless of region, instance series, or operating system. You designate the resources covered by the plan by setting its scope to a subscription, resource group, management group or your entire account. Savings plan benefits are automatically first applied to services with the greatest discount, allowing you to get the most value from your hourly commitment. If the usage exceeds that commitment, you get a bill at your regular pay-as-you-go prices. Savings plans are a use-it or lose-it benefit, and don't carry over from hour to hour. Savings plans provide cost benefits and don’t affect the runtime state of your resources.

Diagram depicting the compute products and services covered by the Azure savings plan for compute.

Savings plan services

The following compute services participate in the compute savings plan:

  • Azure Virtual Machines (virtual machines don't include BareMetal Infrastructure, A, G, and GS series)
  • Azure App Service (Premium v3 and Isolated v2 plans)
  • Azure Dedicated Host
  • Azure Container Instances
  • Azure Functions Premium plan

Savings plan subscription and offer types

Savings plan applies to the following eligible subscriptions and offer types:

  • Enterprise Agreement (EA) with offer numbers MS-AZR-0017P or MS-AZR-0148P
  • Microsoft Customer Agreement (MCA) subscriptions
  • Microsoft Partner Agreement (MCP) subscriptions