Updated: March 25, 2024 (November 19, 2023)

  Analyst Report

Maximizing Discounts for Long-Running Azure VM Workloads

My Atlas / Analyst Reports

5,112 wordsTime to read: 26 min
Wes Miller by
Wes Miller

Wes Miller analyzes and writes about Microsoft’s security, identity management, and systems management technologies. Before joining Directions on Microsoft, Wes... more

  • 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 five purchasing options that can help reduce the costs of Azure VM compute time and use of Microsoft software within an Azure VM. However, the true savings depends on how long the organization expects to run the VM in Azure, and the options always require some form of upfront purchase. Combining offers is possible in several cases and can deliver cost savings of up to 80% off pay-as-you-go (PAYG) rental rates. However, customers should be careful about making long-term plans reliant on these savings beyond the end of their current Enterprise Agreements (EAs), as nothing prohibits Microsoft from subsequently changing the available options. This report reflects the options available for multienant Azure VMs; a range of similar options are available for VMs running on Azure Dedicated Host.

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