Maximizing Discounts for Long-Running Azure VM Workloads

A newer version of this report, published in Oct. 2020, is available here.

 

 

• Several purchasing options can help reduce costs for long-running Azure VM workloads.
• Each option has limitations and restrictions, and upfront planning and financial commitments are required.
• Options can be combined to provide greater cost reductions.

There are four purchasing options that can help reduce the costs of Azure VM compute time and use of Microsoft software within an Azure VM. However, their actual savings depend on how long and with what regularity an organization expects to run a VM in Azure and always require some form of upfront purchase. Combining offers is possible in most cases and can offer cost savings of up to 80% off pay-as-you-go (PAYG) rental rates. However, customers should avoid planning on these savings beyond the expiration date of their current Enterprise Agreement as nothing prohibits Microsoft from subsequently changing the available options.