Azure Savings Plan for Compute

Friday 21st October 2022

At Microsoft Ignite 2022, Microsoft officially announced the new Azure Savings Plan for compute. With this new pricing offer, customers will have an easy and flexible way to save up to 65% on compute costs, compared to pay-as-you-go pricing, in addition to existing offers in market including Azure Hybrid Benefit and Reservations.

Azure savings plan for compute is available through Bytes and provides lower prices on select Azure compute services.


So, how does it work?

An hourly rate will be determined based from your usage requirements, which will be fixed for 1 or 3 years. You can choose to pay this upfront, or monthly at no extra cost. Your usage of participating compute services anywhere in the world is covered by the plan at reduced prices, helping you get more value from your cloud budget.

During the times when your usage is above your determined hourly commitment, you’ll be billed on a separate line item at the regular pay-as-you-go prices. With savings automatically applying across compute usage globally, you’ll continue saving even as your usage needs change over time.

*Unused amounts within a given hour do not roll over to subsequent hours.



Expanding cost savings options for Azure compute:


With the new Azure Savings Plan for compute, Microsoft now offer several options to reduce costs:


·         Windows Server and SQL Server workloads: Bring your existing on-premises licenses to Azure with Azure Hybrid Benefit.


·         Stable, predictable workloads: Get lower prices on a specific virtual machine in a particular Azure region with Reserved Instances.

·         Interruptible workloads: Access low-cost unused Azure compute capacity at scale with Spot Virtual Machines.

·         New! Consistent compute spend: Unlock lower prices on compute services by committing to spend a fixed hourly amount with Azure savings plan for compute.


Example: D16 v5 in UK South with Windows licence included

Pay-as-you-go:                  £1.51 / hour

Savings plan (1-year):     £1.30 / hour saving 25%

Savings plan (3-year):     £1.19 / hour saving 47%


Watch this video for an overview, or Read the Azure savings plan for compute Microsoft Documentation


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