Azure Reserved Instance

An Azure Reserved Instance is a type of pricing option for certain Azure virtual machine (VM) and Virtual Private Network (VPN) services that allows customers to save money on their Azure costs by committing to a one- or three-year term of service in exchange for a discount on the hourly usage charges for those services. With Azure Reserved Instances, customers can pre-pay for their VM and VPN usage at a discounted rate, which can result in significant savings compared to pay-as-you-go pricing.

To purchase an Azure Reserved Instance, customers must select the VM or VPN services they want to reserve, choose a term length (one year or three years), and pay the upfront fee. Once the Azure Reserved Instance is active, the customer will receive the discounted hourly rate for their VM and VPN usage for the duration of the term. Customers can also change or cancel their Azure Reserved Instances if their needs change, but they may be subject to additional fees or penalties.