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Copy file name to clipboardExpand all lines: articles/postgresql/single-server/concept-reserved-pricing.md
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@@ -8,7 +8,7 @@ ms.topic: conceptual
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ms.author: sunila
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author: sunilagarwal
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ms.reviewer: ""
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ms.date: 06/24/2022
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ms.date: 12/12/2023
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---
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# Prepay for Azure Database for PostgreSQL compute resources with reserved capacity
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## How does the instance reservation work?
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You don't need to assign the reservation to specific Azure Database for PostgreSQL servers. An already running Azure Database for PostgreSQL (or ones that are newly deployed) will automatically get the benefit of reserved pricing. By purchasing a reservation, you're pre-paying for the compute costs for a period of one or three years. As soon as you buy a reservation, the Azure database for PostgreSQL compute charges that match the reservation attributes are no longer charged at the pay-as-you go rates. A reservation does not cover software, networking, or storage charges associated with the PostgreSQL Database servers. At the end of the reservation term, the billing benefit expires, and the Azure Database for PostgreSQL are billed at the pay-as-you go price. Reservations do not auto-renew. For pricing information, see the [Azure Database for PostgreSQL reserved capacity offering](https://azure.microsoft.com/pricing/details/postgresql/). </br>
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You don't need to assign the reservation to specific Azure Database for PostgreSQL servers. An already running Azure Database for PostgreSQL (or ones that are newly deployed) automatically get the benefit of reserved pricing. By purchasing a reservation, you're prepaying for the compute costs for one or three years. As soon as you buy a reservation, the Azure database for PostgreSQL compute charges that match the reservation attributes are no longer charged at the pay-as-you go rates. A reservation doesn't cover software, networking, or storage charges associated with the PostgreSQL Database servers. At the end of the reservation term, the billing benefit expires, and the vCores used by Azure Database for PostgreSQL are billed at the pay-as-you go price. Reservations don't autorenew. For pricing information, see the [Azure Database for PostgreSQL reserved capacity offering](https://azure.microsoft.com/pricing/details/postgresql/). </br>
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> [!IMPORTANT]
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> Reserved capacity pricing is available for the Azure Database for PostgreSQL in [Single server](./overview.md#azure-database-for-postgresql---single-server) and [Flexible Server](../flexible-server/overview.md) deployment options.
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* For Enterprise subscriptions, **Add Reserved Instances** must be enabled in the [EA portal](https://ea.azure.com/). Or, if that setting is disabled, you must be an EA Admin on the subscription.
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* For Cloud Solution Provider (CSP) program, only the admin agents or sales agents can purchase Azure Database for PostgreSQL reserved capacity. </br>
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The details on how enterprise customers and Pay-As-You-Go customers are charged for reservation purchases, see [understand Azure reservation usage for your Enterprise enrollment](../../cost-management-billing/reservations/understand-reserved-instance-usage-ea.md) and [understand Azure reservation usage for your Pay-As-You-Go subscription](../../cost-management-billing/reservations/understand-reserved-instance-usage.md).
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For details on how enterprise customers and Pay-As-You-Go customers are charged for reservation purchases, see [understand Azure reservation usage for your Enterprise enrollment](../../cost-management-billing/reservations/understand-reserved-instance-usage-ea.md) and [understand Azure reservation usage for your Pay-As-You-Go subscription](../../cost-management-billing/reservations/understand-reserved-instance-usage.md).
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## Reservation exchanges and refunds
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You can exchange a reservation for another reservation of the same type, you can also exchange a reservation from Azure Database for PostgreSQL - Single Server with Flexible Server. It's also possible to refund a reservation, if you no longer need it. The Azure portal can be used to exchange or refund a reservation. For more information, see [Self-service exchanges and refunds for Azure Reservations](../../cost-management-billing/reservations/exchange-and-refund-azure-reservations.md).
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## Reservation discount
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You may save up to 65% on compute costs with reserved instances. In order to find the discount for your case, please visit the [Reservation blade on the Azure portal](https://aka.ms/reservations) and check the savings per pricing tier and per region. Reserved instances help you manage your workloads, budget, and forecast better with an upfront payment for a one-year or three-year term. You can also exchange or cancel reservations as business needs change.
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You may save up to 65% on compute costs with reserved instances. In order to find the discount for your case, visit the [Reservation blade on the Azure portal](https://aka.ms/reservations) and check the savings per pricing tier and per region. Reserved instances help you manage your workloads, budget, and forecast better with an upfront payment for a one-year or three-year term. You can also exchange or cancel reservations as business needs change.
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## Determine the right server size before purchase
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The size of reservation should be based on the total amount of compute used by the existing or soon-to-be-deployed servers within a specific region and using the same performance tier and hardware generation.</br>
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The size of reservation should be based on total amount of compute used by the existing, or soon-to-be-deployed, servers within a specific region, and using the same performance tier and hardware generation.</br>
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For example, let's suppose that you are running one general purpose Gen5 – 32 vCore PostgreSQL database, and two memory-optimized Gen5 – 16 vCore PostgreSQL databases. Further, let's supposed that you plan to deploy within the next month an additional general purpose Gen5 – 8 vCore database server, and one memory-optimized Gen5 – 32 vCore database server. Let's suppose that you know that you will need these resources for at least one year. In this case, you should purchase a 40 (32 + 8) vCores, one-year reservation for single database general purpose - Gen5 and a 64 (2x16 + 32) vCore one year reservation for single database memory optimized - Gen5
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For example, let's suppose that you're running one general purpose Gen5 – 32 vCore PostgreSQL database, and two memory-optimized Gen5 – 16 vCore PostgreSQL databases. Further, let's suppose that you plan to deploy an additional general purpose Gen5 – 8 vCore database server, and one memory-optimized Gen5 – 32 vCore database server within the next month. Let's suppose that you know that you need these resources for at least one year. In this case, you should purchase a 40 (32 + 8) vCores, one-year reservation for single database general purpose - Gen5 and a 64 (2x16 + 32) vCore one year reservation for single database memory optimized - Gen5.
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## Buy Azure Database for PostgreSQL reserved capacity
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1. Sign in to the [Azure portal](https://portal.azure.com/).
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2. Select **All services** > **Reservations**.
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3. Select **Add** and then in the Purchase reservations pane, select **Azure Database for PostgreSQL** to purchase a new reservation for your PostgreSQL databases.
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3. Select **Add** and then, in the Purchase reservations pane, select **Azure Database for PostgreSQL** to purchase a new reservation for your PostgreSQL databases.
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4. Fill in the required fields. Existing or new databases that match the attributes you select qualify to get the reserved capacity discount. The actual number of your Azure Database for PostgreSQL servers that get the discount depend on the scope and quantity selected.
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:::image type="content" source="media/concepts-reserved-pricing/postgresql-reserved-price.png" alt-text="Overview of reserved pricing":::
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| Region | The Azure region that’s covered by the Azure Database for PostgreSQL reserved capacity reservation.
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| Deployment Type | The Azure Database for PostgreSQL resource type that you want to buy the reservation for.
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| Performance Tier | The service tier for the Azure Database for PostgreSQL servers.
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| Term | One year
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| Quantity | The amount of compute resources being purchased within the Azure Database for PostgreSQL reserved capacity reservation. The quantity is a number of vCores in the selected Azure region and Performance tier that are being reserved and will get the billing discount. For example, if you are running or planning to run an Azure Database for PostgreSQL servers with the total compute capacity of Gen5 16 vCores in the East US region, then you would specify quantity as 16 to maximize the benefit for all servers.
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| Term | This term can be either One year or Three years.
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| Quantity | The amount of compute resources being purchased within the Azure Database for PostgreSQL reserved capacity reservation. Corresponds to the number of vCores in the selected Azure region and Performance tier that are being reserved and get the billing discount. For example, if you're running or planning to run an Azure Database for PostgreSQL servers with the total compute capacity of Gen5 16 vCores in the East US region, then you would specify quantity as 16 to maximize the benefit for all servers.
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## Reserved instances API support
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## vCore size flexibility
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vCore size flexibility helps you scale up or down within a performance tier and region, without losing the reserved capacity benefit. If you scale to higher vCores than your reserved capacity, you will be billed for the excess vCores using pay-as-you-go pricing.
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vCore size flexibility helps you scale up or down within a performance tier and region, without losing the reserved capacity benefit. If you scale to higher vCores than your reserved capacity, you're billed for the excess vCores using pay-as-you-go pricing.
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## How to view reserved instance purchase details
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You can view your reserved instance purchase details via the [Reservations menu on the left side of the Azure portal](https://aka.ms/reservations).
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You can view your reserved instance purchase details via the [Reservations](https://aka.ms/reservations) blade in the Azure portal.
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## Reserved instance expiration
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You'll receive email notifications, first one 30 days prior to reservation expiry and other one at expiration. Once the reservation expires, deployed VMs will continue to run and be billed at a pay-as-you-go rate.
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You receive email notifications, first one 30 days prior to reservation expiry and another one at expiration. Once the reservation expires, deployed VMs continue to run and are billed at a pay-as-you-go rate.
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