A Beginner’s Guide to Microsoft Azure Reserved Virtual Machine Instances

Microsoft Azure offers three different purchasing options for compute resources: pay-as-you-go (PAYG), where you pay full price, Batch, where you purchase low-priority virtual machines (VMs) at a reduced price compared with normal VMs, and Reserved, where you are paying an all upfront payment for the cost of the virtual machine. Azure Reserved Virtual Machine (VM) Instances have support for Linux, Windows, SQL Server, Oracle, and more. To put it simply, when you purchase an Azure reservation you’re essentially purchasing a coupon.

Azure Reserved VM Instances allow you to make a commitment to utilize specific virtual machine instance types in return for a discount on your compute costs. The benefits? Savings and prioritized capacity.

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