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Reserved Instance in Azure – Important Changes

09/10/2019

For some time now we have available the ability to buy in advance an instance of virtual machine, called Reserved Instance.

Basically the process remains ( https://msincic.wordpress.com/2017/11/20/azure-reserved-instance-available-for-purchase/ ) but we have some news and alerts:

  1. VM Type Change
  2. Other Reservable Resources
  3. Change in billing method
  4. What is not included in a reservation
Possibility of Instance Change (VM profile)

This change is important, because in the first version (link above) it was not possible to change the type of VM.

The process to change was to request the refund of the already paid instance (remember that there was a penalty ) and redo with another type of VM, even from the family like D2 to D4.

To do this simply use the Exchange button on a booking and it will be possible to choose the new type of VM as below without the penalty of approximately 12% of fee.

image

However, obviously the cost of a D2 is different from a D4 and for this we have a table that can be used in the calculation to know the amount of difference that will be paid when switching between VM types at https://docs.microsoft.com/en-us/azure/virtual-machines/windows/reserved-vm-instance-size-flexibility?wt.mc_id=4029139

Other Resource Types In addition to VMs

In the early version IRs were just VMs, but now it is possible to do with various types of services. The following is the list of supported ones:

  • Reserved Virtual Machine Instance
  • Azure Cosmos DB reserved capacity
  • SQL Database reserved vCore
  • SQL Data Warehouse
  • App Service stamp fee

This list changes as new features may be added and is available at https://docs.microsoft.com/en-us/azure/billing/billing-save-compute-costs-reservations?wt.mc_id=4029139

Important: See the topic below for what is included in and out of RI.

Monthly Payment Method

Until 8 / September / 19 only advance payment from Enterprise Agreeement credits or credit card payment was possible.

It is now possible to pay monthly, ie every month will consume the amount discounted equal to the annual as if it were a monthly subscription and not annual. Best to understand is that the commitment remains annual but paid monthly rather than upfront .

The other rules remain the same, penalty in case of cancellation, change of VM type or service, etc.

For those who already have reservations, it will be necessary to wait for the purchase period, once it has been paid in advance and therefore the cancellation fee would be charged.

https://docs.microsoft.com/en-us/azure/billing/billing-monthly-payments-reservations?wt.mc_id=4029139

Important: The monthly payment has not changed the form of booking being annual, so there will be a penalty in case of cancellation.

Separate Charged Resources

A common misconception for customers who purchased RIs is that there are still other charges for VMs and features appearing on their statements.

What needs to be clear is that reservations refer only to computational resources and not to aggregate resources such as licenses, storage and network traffic.

For example, in the type of reservation for VMs that are the most common:

  • Included in RI : CPU, Memory, and Allocation
  • Not included in RI : Storage, network traffic, and OS licensing if AHUB was not used

The reason is that these non-included features are part of the subscription and are either shared or optional (as is the case with the Windows or SQL license) and there would be no limit to using only those specific reserves, besides being volatile other than the type of one. VM for example.

Conclusion

New features that can be reserved, flexibility to change, new billing, and the right understanding can bring substantial savings to those who have migrated services.

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