Azure was created by Microsoft in 2010 to deliver cloud services allowing users to build, test, deploy, and manage their applications on Microsoft data centers across 54 global regions. Azure provides a number of cloud services in many categories, such as AI + Machine Learning, Computing, Analytics, Databases, IoT, Media, Networking, Storage, and Web. It is estimated that 95% of Fortune 500 companies are using Azure in some way. This week, Microsoft announced revolutionary changes to the Azure pricing, known as Azure savings plans.
Azure savings plans will ease the budgets of those companies that exhibit consistent usage of Azure compute resources. The plan saves money by permitting IT to commit to a fixed hourly spend on computing services for one-year or three-year terms. These plans can reduce resource costs by as much as 65% from pay-as-you-go costs. Every hour under the new plan, the compute usage is discounted until the commitment amount is reached – usage afterward is priced at pay-as-you-go rates.
Companies can set up a savings plan by making a new commitment or trading in an active reservation for a savings plan. The prorated value of the unused reservation benefit will be switched over to an equivalent hourly commitment for the savings plan. While the commitment may not be enough for what is required, it can be increased.
At this time, clients can only obtain savings plans directly in the Azure portal. Companies can pay for a savings plan upfront or on a monthly basis. Both plans are priced the same, with no additional fees for monthly payments. Savings plans offer a billing discount and do not influence the runtime state of relevant resources.
For those customers who have consistent compute spend, purchasing a savings plan provides the option to minimize your costs. Pay-as-you-go rates apply when organizations continually run services devoid of any kind of savings plan. Usage covered by a savings plan is eligible for discounted rates. If anyone is in need of assistance in deciding which commitment to make, contact Microsoft.
According to a recent announcement from Microsoft, charges covered by an Azure savings plan include:
Virtual Machines: An Azure savings plan will cover the VM (virtual machine) and compute costs for cloud services. It will not apply to other software, Windows, networking, or storage expenses. Virtual machines don’t include BareMetal Infrastructure, A, G, and GS series. Spot VMs are also excluded from savings plans.
Azure Dedicated Host: Only the compute costs are included with the Dedicated host.
Container Instances
Azure Premium Functions
Azure App Services: The Azure savings plan for computing can only be applied to the App Service upgraded Premium v3 plan and the upgraded Isolated v2 plan.
Note: Software costs are not included in the savings plan discount for Windows virtual machines and SQL Database. Licensing costs can be covered, however, with Azure Hybrid Benefit. Visit their website today for more information about the savings plan or any other Microsoft cloud computing services.
A managed services company can help companies replace or augment their IT departments. Alliance IT provides managed services for Sarasota area small-to-medium-sized businesses, including consulting and support for Azure cloud services. Call Alliance It today if these services are of interest or if you think that you could benefit from having an expert assist with your contracts and service management.
