Reservation Commitments on Azure

Simarpreet Arora Cloudwiry Written by Simarpreet Arora


It is common knowledge that one can save massive amounts on Azure by committing to 1-year or 3-year reservations plans. 

1-year reservations offer discounts ranging from 30% to 45%, and 3-years reservations offer discounts ranging from 55% to 72% over pay-as-you-go prices. Reservations are either use-it-or-lose-it and are applied hourly to the matching instance type.

With savings of up to 72% over pay-as-you-go rates, reservations on Azure can reduce compute costs by 50% and cloud bills by 15%. 


So why does everyone not do it already? 

As organizations strive to maintain the latest cloud technology, the infrastructure on cloud keeps changing. This makes committing to a particular infrastructure or PaaS a tough decision to make.

Organizations generally work with the principle of minimizing risk and maximizing profits. And although the upside for Reservations is great (50% savings), the downside of wasting the reservations is too risky to commit to.


What does one need?

  • Complete automation of reservations with coverage up to 80% and savings up to 15% on the Azure bill.
  • Easy, quick savings without any engineering or operation insights from your end.
  • Start or stop running instances as per demand with continuous maintenance of reservations for resources that provide the most savings.

Cloudwiry’s RI Maximizer efficiently covers all of the above and more.

Worried about over-committing and not utilizing the reservations? 

Reservation Refinancing to the rescue:

  • In case of an overcommitment on the cost of Reservations, reduce the monthly payment by extending the amortization period.
  • Reduce the monthly commitment on Reservations by getting rid of underutilized RIs.
  • Increase savings by extending the duration of the contract.

Need help with the automation of Azure Reservations? Schedule a call with our cloud experts or drop us an email at

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