In this video I explore the Azure Savings Plan for Compute as a very flexible way to save money on a range of compute services in any region when you make a 1- or 3-year commit. Also, how does this differ from the existing Azure Reservations.
Services like Azure Advisor will give guidance on recommended $ commits to optimize spend.
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▬▬▬▬▬▬ C H A P T E R S ⏰ ▬▬▬▬▬▬
0:00 – Introduction
0:16 – Azure Reservation review
1:33 – VM, VMSS and more
3:41 – Infrastructure and license cost elements
5:54 – How commit billing works
7:48 – Scopes
9:28 – AR compute trade-in future?
10:38 – Azure Savings Plan for Compute introduction
12:21 – Included compute services
13:16 – Commit, billing application and scopes
14:05 – Savings plan creation
15:55 – VM, VMSS, AKS, AVD and more
16:19 – Flexibility
16:55 – Reservations with savings plan
17:45 – What are the discounts
19:55 – Close and summary
▬▬▬▬▬▬ K E Y L I N K S 🔗 ▬▬▬▬▬▬
► Microsoft documentation:
🔗 https://learn.microsoft.com/azure/cost-management-billing/savings-plan/savings-plan-compute-overview
► Whiteboard:
🔗 https://github.com/johnthebrit/RandomStuff/raw/master/Whiteboards/AzureSavingsPlanforCompute.png
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20 Comments
Hey everyone, welcome to another video! Please make sure to read the description for the chapters and key information about this video and others.
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Great video great view. Great show
Hey John, thank you so much for this and well done for completing Iron Man 2022! A lot of organisations will be jumping all over this especially particularly in the UK Azure prices have gone up around 11% in the last few months. One thing which a lot of people will be wanting to know is how savings are calculated when applying Savings Plan retrospectively to supported compute resource, in particular with VMs that are only on for say a few hours a day. It's not really clear from documentation. Cheers!
Great video! I was at ignite in Seattle last week, was at one of the “Ask the Expert” sessions where they explained Savings Plans and I also watched one of the sessions that went into a bit more detail (BRK15: Optimize your Investment in Azure) but this explanation was superior!
Great video as always, well done IronMan. I'm hoping to see other examples of measuring for utilization, especially in large subs & M.G.'s … and … blending with reservations and AHUB. For my money, ASPs (another ASP!) server to further complicate best-case billing scenarios as there aren't much for tools to help build your strategy. It's all excel from here!
This is a great service!
Got my laundry folded and learned a bit about something that I can share with the team tomorrow – thanks John!
You are super clear.
Great info thanks 🙂
Nice one. Our org loves reserved instances as some of our saas products run on a set SKU and the customer typically runs on a yearly rolling contract so works super well in knowing committed spend is contractually there for a year and not changing. Perfect for reserved instances. However, this is interesting to know, a much more flexible approach for a wider net.
Great explanation of savings plans. One thing to be aware of is that you can cancel up to $50k of reservations per year but savings plans cannot be modified or cancelled once committed.
Thanks for another great video! And thank you very much for the crams videos, for az-104 videos and play list. Thanks to that I have got the AZ-104 certification. 🇧🇷
Is this still considered opex? 🙂 Great info!
Fantastic, thanks sir! Well explained as always, and definitely appreciate the comparison with reservations.
You are one of the best teachers – thank you for your time and efforts in making these videos !! #StayBlessednHappy
Thx ! As always great video.
Really good that as our estate changes so much over 12 months and as luck would have it our initial RI's are due to end in the next month. Really useful thanks John!
This is great!
If your customer has an Enterprise Agreement or Microsoft Azure Commit To Consume (MACC) that includes an Azure Commitment Discount (ACD), it will not stack on top of savings plans. In some cases, the ACD will have better overall pricing than savings plans.
Excellent explanation as always, and I agree this is likely to become the preferred option for organisations who are expanding into new regions and modernising apps which consume various compute services. Thanks John.