Savings plan purchase recommendations are calculated by analyzing your hourly pay-as-you-go usage and cost data. Recommendations are generated for the selected savings plan term (1- or 3-years), [benefit scope](scope-savings-plan.md) (shared, subscription and look back period (7-, 30-, or 60-days). Azure calculates your potential savings by simulating the total costs you would have under a savings plan. It examines each combination of term, benefit scope, and look back period. It then compares these simulated costs with the actual pay-as-you-go costs you incurred. The commitment amount that returns the greatest savings for each term, benefit scope and look back period combination is highlighted. To learn more about how recommendations are generated, see [How savings plan recommendations are generated](purchase-recommendations.md#how-savings-plan-recommendations-are-generated).
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