How to choose the right reserved instance in Azure
Are you considering committing to a reserved instance in Azure? Our guide will help you make an informed decision by providing insights on the benefits, flexibility, and limitations of reserved instances. Learn about the steps to evaluate and purchase a reserved instance, the tools and services to optimize and manage them, and the alternative options available. Make the most of your investment with our comprehensive guide to Azure Reserved Instances.
Announcing savings plan for databases: flexible savings for modern, evolving workloads
As organizations modernize their data platforms, database environments are constantly changing. Teams migrate between services, scale across regions, and evolve architectures to support new applications and AI driven workloads. But optimizing costs in these environments can be challenging, especially when savings options require locking into specific services, regions, or configurations. To help with these challenges, we’re introducing savings plan for databases, a new way to save on eligible database services while maintaining the flexibility needed to modernize and grow your business. Savings plan for databases helps IT, engineering, and FinOps teams reduce database costs with a simple, spend based commitment—without slowing down architectural change. What is savings plan for databases? Savings plan for databases is a spend based pricing model that enables customers to save on eligible database services by committing to a fixed hourly spend for one year. In return, customers receive lower prices—up to 35% compared to pay-as-you go pricing on select services*. Instead of committing to a specific database service, region, or configuration, customers commit to an hourly dollar amount (for example, $5 per hour). The plan automatically applies savings to eligible database usage each hour, prioritizing the usage that delivers the greatest savings first—across services and regions—until the hourly commitment is met. Any usage beyond the commitment continues at pay-as-you go rates, ensuring flexibility as needs change. Benefits designed for modern database workloads Flexibility as environments evolve Savings plan for databases is designed for change. Savings continue to apply as workloads modernize or move across regions—without requiring customers to repurchase or reconfigure commitments. This makes it well suited for dynamic environments where architectures are expected to evolve over time. Automatic cost optimization With a single hourly commitment, customers unlock discounted prices on eligible database usage. Savings are applied automatically each hour, ensuring customers get the most value from their commitment without manual management or constant tuning. Predictable budgeting and forecasting A fixed hourly spend replaces variable pay-as-you-go costs with a predictable commitment, making it easier for FinOps and IT finance teams to forecast spend, plan budgets, and manage cloud investments with confidence. What services that are covered with the savings plan for databases: Savings plan for databases pricing Savings based on pay as you go list price. Savings calculated by comparing committed plan price to pay-as-you-go list price for the same usage. Savings calculations are based on list prices and do not vary by region. Pricing as of March 2026. Actual savings may vary based on usage. Pricing Calculator and Pricing Pages will be updated in future date to reflect savings plan for databases pricing and savings. How to purchase a savings plan for databases Getting started is simple: Review personalized recommendations in the Azure portal based on recent database usage. Choose an hourly commitment and scope it into a subscription, resource group, management group, or entire account. Select a payment option—pay monthly or upfront at no additional cost—and optionally enable auto‑renewal. Once purchased, savings are applied automatically to eligible database usage every hour. Learn more here on how to purchase a savings plans here. Example: saving while modernizing Consider a team running a global application that uses Azure SQL Database and Azure Database for PostgreSQL today, with plans to expand into additional regions over the next year. Instead of purchasing individual reservations tied to specific services or regions, the team purchases a 1‑year savings plan for databases with a $5/hour commitment. As usage shifts across database services and regions, Azure automatically applies discounted prices to eligible usage up to the hourly commitment. The team continues modernizing without disruption—while benefiting from predictable savings. Summary Savings plan for databases provides a new way to optimize database costs —without locking into fixed architectures. With hourly commitments, automatic optimization, and predictable costs, it’s designed to support modernization today and continued growth tomorrow. Get started You can begin saving today: View your recommendation in Azure Advisor Purchase a plan in Azure portal Visit the Savings plan homepage Review the Microsoft Documentation Watch demo videos at the Azure Essentials Show *Customers may see savings estimated to be between 0% and 35%. The 35% savings estimate is based on one Azure SQL Database serverless running for 12 months at a pay-as-you-go rate vs. a reduced rate for a 1-year savings plan. Based on Azure pricing as of March 2026. Prices are subject to change. Actual savings may vary based on location, database service, and/or usage. ** Note that savings plan for databases will also be consumed by SQL Server on Azure Virtual Machines and SQL Server enabled by Azure Arc hourly license at the normal pay-go price.Streamline Analytics Spend on Microsoft Fabric with Azure Reservations
Introduction As organizations accelerate their cloud adoption, optimizing spend while maintaining performance and scalability is a top priority. Microsoft Fabric, our all-in-one, software-as-a-service data platform, is designed to help teams accomplish any data project. But how can you ensure your investment delivers maximum value? In this post, we’ll explore how Azure reservations for Microsoft Fabric can help you optimize costs, simplify purchasing, and streamline your data analytics spend. What Is Microsoft Fabric? Microsoft Fabric is an end-to-end data platform that brings together data orchestration, transformation, machine learning, real-time event processing, reporting, and databases in a single SaaS experience. It’s designed for data engineers, scientists, analysts, and business users, offering role-specific workloads and integrated AI experiences, all backed by a unified data lake—OneLake. Unlike traditional services that require managing different pricing and capacities for each workload, Fabric simplifies this with a single capacity model. You purchase Fabric Capacity Units (CUs), which power all workloads, and jobs consume CUs at different rates depending on your compute needs. How Azure reservations Work with Fabric Azure reservation is a pricing model that helps you save when you commit to a specific resource, region, and term - ideal for stable, predictable workloads. Reservations don’t affect capacity or runtime; they simply provide discount benefits. Azure analyzes your usage and recommends reservation options, and tools like Azure Advisor guide you toward the right purchase. You may be familiar with how reservations work with virtual machines, but Azure reservations can also apply to other services such as Microsoft Fabric. When purchasing Fabric, you can choose a pay-as-you-go model for flexible usage or save substantially with Azure reservations for consistent workloads. For example, if you deploy an F64 SKU in Fabric for ongoing reporting and analytics, buying an Azure reservation for this SKU ensures you pay the discounted rate for your consistent usage. How to Purchase a Reservation for Microsoft Fabric Let’s look at how you can purchase a reservation for Microsoft Fabric. Follow these steps below or watch this video: 1. Start in the Microsoft Marketplace or Azure Portal: Visit the Microsoft Marketplace and look up Microsoft Fabric. Click “Get it now” and it will take you to the Azure Portal. 2. Create Fabric Capacity: Select Configuration: In Azure Portal, on the Create Fabric Capacity page, select your subscription and resource group, name your capacity, and select your region. Select Size: Use the Fabric SKU estimator to determine the right capacity for your workloads, or start with a free trial and monitor usage with the capacity metrics app. You can always upgrade or create multiple capacities as needed. Organize with Tags: Use Azure tags to track costs and automate management across environments. 3. Buy Fabric Reservations: In the Azure portal, search for and select “Reservations.” On the Reservations page, click “Add” and select Microsoft Fabric. Choose your scope and subscription, select Fabric Capacity with upfront or monthly payments, and adjust the quantity as needed. Best Practices for Maximizing Savings To get the most value from your reservations, follow these best practices: Estimate Carefully: Avoid over-committing (which leads to wasted resources) or under-committing (which leads to higher costs). Understand your resource needs and usage and use Azure Advisor recommendations to make informed decisions. Enable Auto-Renew: Ensure your reservations automatically renew so you don’t lose the discount but adjust your reservation needs as workloads change. Monitor Usage: Use Azure Cost Management to continuously track reservation usage. Choose the Right Scope: Align reservation benefits with your organizational structure to maximize savings. Conclusion: Microsoft Fabric and Azure reservations empower organizations to streamline analytics spend, simplify purchasing, and unlock significant savings without sacrificing performance or scalability. Following best practices and leveraging the right tools ensures your cloud investments deliver maximum value. Get started today by visiting the Microsoft Marketplace and Azure Portal to purchase Fabric Capacity units and reservations or read Save costs with Microsoft Fabric Capacity reservations - Microsoft Cost Management | Microsoft Learn to learn more.Smarter Cloud, Smarter Spend: How Azure Powers Cost-Efficient Innovation
In today’s dynamic business environment, organizations are under pressure to innovate rapidly while managing costs effectively. The cloud, especially with AI at the forefront, is driving transformation across industries. But with rising cloud spend and economic uncertainty, cost efficiency has become a top priority. To help customers navigate this challenge, Microsoft commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study. The study reveals how organizations can unlock significant financial and operational benefits by leveraging Microsoft Azure’s tools and strategic pricing offers, especially when migrating to the cloud and adopting AI. Cloud Migration: Accelerating Modernization with Azure Migrating to the cloud is a foundational step for digital transformation. But many organizations initially struggled with cost overruns, lack of visibility, and inefficient resource usage. The TEI study shows how Azure’s native tools and strategic pricing offers helped overcome these challenges. Key Enablers of Cost-Efficient Migration: Azure Hybrid Benefit: Allows organizations to optimize savings in their migration journey by giving a discount on server licenses and subscriptions and granting hosting and outsourcing benefits Azure reservations: A commitment model that enables customers to save on their spend when they commit to a specific resource, in a region, and for a specific term. Azure savings plan for compute: A flexible pricing model that enables customers to save on their cost when they commit to a spend a fixed hourly amount for a specific term. Microsoft Cost Management & Azure Advisor: Provide real-time insights and optimization recommendations. Azure Pricing Calculator: Accurately estimate migration costs and forecast budgets. “Azure reservations and Azure Hybrid Benefit facilitate moving to the cloud. With these offers and better cost management, we are saving 30% to 35%. Managing our costs without these tools would be an unpredictable nightmare.” — Senior IT Director, Manufacturing Quantified Impact*: 25% reduction in cloud spending in Year 1 using Microsoft tools. $4.9M in direct savings over three years from tool-based optimization. $3.8M in additional savings from strategic pricing offers. AI Adoption: Driving Innovation with Cost-Efficient Azure Solutions Once migrated, organizations are increasingly turning to AI to drive innovation and competitive advantage. Azure doesn’t just support AI workloads, it makes them more cost-effective and scalable. Key Enablers of AI Adoption: Azure AI Foundry Provisioned Throughput reservations: Get cost savings compared to provisioned throughput (PTU) hourly pricing. Microsoft Cost Management & Azure Advisor: Help forecast and optimize AI-related cloud spend. Strategic Pricing Offers: Enable predictable budgeting and reinvestment into AI initiatives. “Leveraging Microsoft tools and strategic pricing offers is not only increasing profitability but also putting those savings into more interesting projects like AI with fraud prevention work and the customer experience.” — VP of Analytics Engineering, Financial Services “Azure reservations for AI projects using PTUs has helped our AI initiatives. It has helped better predict costs.” — CIO, Healthcare Unquantified Benefits: Increased cloud insights and visibility. Improved governance and accountability. Enhanced productivity (24% by Year 3). The Bottom Line: Unified Transformation with Azure The TEI study concludes that Azure delivers a unified approach to cloud computing, enabling organizations to: Migrate to the cloud efficiently with cost control Adopt AI rapidly by reinvesting savings into innovation Achieve a net present value (NPV) of $8.7 million over three years Realize a 35% reduction in cloud spending in Year 1 “With Microsoft tools, we can focus on higher value projects. Instead of reviewing reports and conducting cost audits, we can build new tools and build with genAI. We can innovate faster.” — Vice President of Analytics Engineering, Financial Services Ready to Dive Deeper? This blog is just the beginning. The full Forrester TEI study is packed with insights, customer stories, and financial modeling to help you build your business case for Azure. Read the full study here *To understand benefits, costs, and risks, Forrester interviewed eight decision-makers with experience using the evaluated Azure solutions. For the purposes of this study, Forrester aggregated the results from these decision-makers into a single composite organization.News and updates from FinOps X 2024: How Microsoft is empowering organizations
Last year, I shared a broad set of updates that showcased how Microsoft is embracing FinOps practitioners through education, product improvements, and innovative solutions that help organizations achieve more. with AI-powered experiences like Copilot and Microsoft Fabric. Whether you’re an engineer working in the Azure portal or part of a business or finance team collaborating in Microsoft 365 or analyzing data in Power BI, Microsoft Cloud has the tools you need to accelerate business value for your cloud investments.Microsoft at FinOps X 2025: Embracing FinOps in the era of AI
It’s that time of year again! June 2 nd is quickly approaching, and Microsoft is set to make a bold impact at FinOps X 2025, continuing our mission to empower organizations with financial discipline, cost optimization, and AI-driven efficiency in the cloud. As artificial intelligence reshapes the industry, we’re excited to showcase how Microsoft’s FinOps tools and services can help you boost productivity, streamline automation, and maximize cloud investments with innovative AI-powered capabilities. Our presence at FinOps X goes beyond standard conference participation, it’s an immersive experience designed to engage, inspire, and equip FinOps practitioners with actionable strategies. Here’s what to expect: Evening by the bay: A Microsoft experience 📍 Roy’s restaurant 📅 June 2 🕖 7:00 PM – 9:00 PM Back by popular demand, we hope you can join us where networking meets relaxation at Microsoft’s signature welcome reception, an unforgettable evening at Roy’s Restaurant. Enjoy handcrafted cocktails, live music, and gourmet food while mingling with FinOps leaders, practitioners, and Microsoft experts. Immersive exhibit: FinOps in the era of AI 📍 Microsoft stage room 📅 June 3-4 🕘 9:30 AM – 5:00 PM On June 3 rd and 4 th , we encourage you to step into the Microsoft stage room, where we’re debuting an interactive exhibit that explores the AI adoption journey. Participants will navigate through key phases, from foundations to design, management, and best practices, all rooted in the FinOps Framework. Gain insights into how Microsoft solutions can help drive cost efficiency and deliver value throughout your AI transformation. Microsoft sessions: Insights and innovation Microsoft will host 10 dedicated sessions throughout the conference, offering a mix of breakout sessions, expert Q&As, and, for the first time, a partner-focused discussion. Our sessions will explore a wide range of topics including: Best practices for maximizing cloud investments FinOps for AI and AI for FinOps FinOps strategies for SaaS and sustainability Governance, forecasting, benchmarking, and rate optimization Deep dives into Microsoft tools: Microsoft Cost Management Microsoft Fabric Microsoft Copilot in Azure GitHub Copilot Azure AI Foundry Azure Marketplace Pricing offers Azure Carbon Optimization FinOps toolkit Each session is designed to provide proven frameworks, real-world insights, and practical guidance to help organizations integrate financial discipline into their cloud and AI projects. Join us at FinOps X 2025 Ready to dive into the latest FinOps strategies and AI-driven efficiencies? Register today to secure your spot at Microsoft’s sessions and experiences! Space is limited, so don’t miss this opportunity to connect, learn, and innovate with peers and experts. 👉 Explore and register for Microsoft sessions (https://aka.ms/finops/x) Stay tuned for more updates as we gear up for an exciting week of learning, networking, and innovation with the FinOps community. We hope you can join us in San Diego from June 2-5, where the future of FinOps meets the limitless possibilities of AI. Microsoft is all in, and we can’t wait to see you there!News and updates from FinOps X 2025: Transforming FinOps in the era of AI
AI is central to nearly every corner of business and technology. It's no surprise that FinOps X 2025 was loaded with news about how AI is changing everything. Learn about how FinOps tools and solutions are evolving in the era of AI!Optimize your Azure costs with our expert guidance, pricing tools, and resources
Efficient management of cloud resources is pivotal for controlling costs and building resilient infrastructure. Taking a strategic approach not only maximizes return on investment but also positions your organization to innovate and manage risk. Recognizing the needs of our customers to bolster their cloud management practices, Microsoft recently launched Azure Essentials as an all-in-one showcase for prescriptive guidance, expert training, and AI-assisted solutions.
