Fix grammar, spelling, formatting in savings-plan-overview.md

Author: nwokolo

articles/cost-management-billing/savings-plan/savings-plan-overview.md

@@ -1,7 +1,7 @@
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 title: What are savings plans?
 titleSuffix: Microsoft Cost Management
-description: Learn how savings plans help you save money by committing an hourly spend for one-year or three-year plan for Azure compute resources.
+description: Learn how savings plans help you save money by committing an hourly spend for one-year or three-year plan to Microsoft Cloud resources.
 author: nwokolo
 ms.reviewer: onwokolo
 ms.service: cost-management-billing
@@ -13,53 +13,76 @@ ms.author: onwokolo
 
 # What are savings plans?
 
-Savings plan enables organizations to reduce eligible compute usage costs by up to 65% (off list pay-as-you-go rates) by making an hourly spend commitment for 1 or 3 years.
-Unlike Azure reservations, which are targeted at stable and predictable workloads, savings plans are targeted for dynamic and/or evolving workloads. To learn more, visit [Decide between a savings plan and a reservation](decide-between-savings-plan-reservation.md). A savings plan is a billing discount - it doesn't affect the runtime state of your resources. 
+A savings plan is a commitment-based discount. You agree to spend a fixed dollar amount per hour for a set period (1 or 3 years), and in return you get lower prices on eligible usage. Savings plan discounts vary by product and by commitment term (1- or 3-year), not the commitment amount. Savings plans are billing offers - they don't affect the runtime state of your resources.
 
-Savings plans is available to organizations with either Enterprise Agreement (EA), Microsoft Customer Agreement (MCA), or Microsoft Partner Agreement (MPA) agreements. Enterprise Agreement customers must have an offer type of MS-AZR-0017P (EA) or MS-AZR-0148P (DevTest) to purchase savings plans. To learn more, visit [Buy a savings plan](buy-savings-plan.md).
+## How do savings plan discounts work?
 
-Savings plan rates are priced in USD for MCA and MPA customers, and in local currency for EA customers. Each hour, eligible compute usage, up to commitment amount, is discounted and used to burn down the hourly commitment. Once the commitment amount is consumed, the remainder of the usage is billed at the customer's pay-as-you-go rate. Any unused commitment from any hour is lost. To learn more, visit [How savings plan discount is applied](discount-application.md).
+Savings plan benefits are applied automatically each hour to eligible usage within the plan’s scope, starting with the usage that receives the highest discount. The discounted cost is then deducted from the plan’s hourly commitment, and any remaining eligible usage is billed at regular pay‑as‑you‑go rates once the commitment is fully used. Unused commitment for an hour expires and does not roll over. To learn more, visit [How savings plan discount is applied](discount-application.md).
 
-Savings plan supports products in different compute services. To learn more, visit [savings plan-eligible services](https://azure.microsoft.com/pricing/offers/savings-plan-compute/#Select-services). Savings plan discounts vary by product and by commitment term (1- or 3-years), not the commitment amount. To learn about included products, visit [included compute products](download-savings-plan-price-sheet.md).  Usage from certain virtual machines that power select compute and non-compute services (e.g. Azure Virtual Desktop, Azure Kubernetes Service, Azure Red Hat OpenShift and Azure Machine Learning) may be eligible for savings plan benefits.
+## How do savings plans compare with reservations?
 
-Azure provides commitment recommendations based on your savings plan eligible on-demand usage, your pay-as-you-go rates (inclusive of any discounts) and the 1- and 3-year savings plan rates. To learn more, visit [savings plan recommendations](purchase-recommendations.md).
+Savings plans and reservations both offer discounts for committing ahead of time, but they work differently.
+Savings plans are based on a dollar‑per‑hour spend commitment and automatically apply across eligible services and regions, making them ideal for changing or dynamic workloads. Reservations lock in savings for a specific resource, size, and region, which delivers deeper discounts but works best when usage is stable and predictable. To learn more, visit [Decide between a savings plan and a reservation](decide-between-savings-plan-reservation.md).
 
-You can buy savings plans in the Azure portal or with the Savings plan API. To learn more, visit [Buy a savings plan](buy-savings-plan.md). You can pay for a savings plan up front or monthly. The total cost of the up-front and monthly savings plan is the same. Savings plans are billed in local currency. For MCA/MPA customers transacting in non-USD currencies, monthly billed amounts will vary, based on the current month's market exchange rate for the customer's local currency.
+## What savings plans are available
 
-## Why buy a savings plan?
+There are two savings plans - Savings plan for compute and Savings plan for databases.
+The compute savings plan is available as a 1-year or 3-year commitment, while the database savings plan is available as a 1-year commitment.
 
-If you have consistent compute spend, but your use of disparate resources makes Azure reservations infeasible, buying a savings plan gives you the ability to reduce your costs. For example, if you consistently spend at least $X every hour, but your usage comes from different resources and/or different datacenter regions, you likely can't effectively cover these costs with reservations. When you buy a savings plan, your hourly usage, up to your commitment amount, is discounted. For this usage, you are no longer charged at the pay-as-you-go rates.
+Savings plan for compute applies to infrastructure costs from a broad set of Azure compute services, including:
+- Azure Virtual Machines
+- Azure App Service
+- Azure Functions premium plan
+- Azure Container Instances
+- Azure Dedicated Host
+- Azure Container Apps
+- Azure Spring Apps for Enterprise
 
-## How savings plan benefits are applied
+> [!NOTE]
+> In addition, infrastructure costs from other services running on eligible compute infrastructure may also benefit from Savings plan for compute. Savings plan for compute doesn't cover software, networking, or storage charges. You might be able to cover the licensing costs with [Azure Hybrid Benefit](https://azure.microsoft.com/pricing/hybrid-benefit/).
 
-With savings plan, hourly usage charges incurred from [savings plan-eligible resources](https://azure.microsoft.com/pricing/offers/savings-plan-compute/#how-it-works), which are within the benefit scope of the savings plan, are discounted and applied to your hourly commitment until the hourly commitment is reached. The savings apply to *all eligible resources*. Usage charges above the commitment are billed at your on-demand rate.
+Savings plan for databases applies to infrastructure and software IP costs for database services which include:
+- Azure SQL Database
+- Azure SQL Managed Instance
+- Azure SQL Database Hyperscale
+- Azure SQL Database serverless
+- Azure Database for PostgreSQL
+- Azure Database for MySQL
+- Azure Cosmos DB
+- Azure DocumentDB
+- Azure Database Migration Service
+- SQL Server on Azure Virtual Machines hourly licenses
+- SQL Server enabled by Azure Arc hourly licenses
 
-You don't need to assign a savings plan to your compute resources. The savings plan benefit is applied automatically to compute usage that matches the savings plan scope. A savings plan purchase covers only the compute part of your usage. For example, for Windows VMs, the usage meter is split into two separate meters. There's a compute meter, which is same as the Linux meter, and a Windows IP meter. The charges that you see when you make the purchase are only for the compute costs. Charges don't include Windows software costs. For more information about software costs, see [Software costs not included with savings plans](software-costs-not-included.md).
+> [!NOTE]
+> Savings plan for databases will also be consumed by SQL Server on Azure Virtual Machines and SQL Server enabled by Azure Arc hourly license at the normal pay-as-you-go price.
 
-For more information about how savings plan discounts are applied, see [Savings plan discount application](discount-application.md).
+## How are savings plans purchased?
 
-For more information about how a savings plan scope works, see [Savings plan scopes](scope-savings-plan.md).
+You can make a new savings plan commitment or trade-in one or more eligible reservations for a savings plan.
+Purchases and trade-ins can be made in Azure portal or with the Savings plan API. Savings plan rates are priced in USD for MCA and MPA customers, and in local currency for EA customers. Savings plans are always billed in local currency. For MCA/MPA customers transacting in non-USD currencies, monthly billed amounts will vary, based on the current month's market exchange rate for the customer's local currency. You can pay for a savings plan up front or monthly. The total cost of the up-front and monthly savings plan is the same.
 
-## Determine your savings plan commitment
-Azure provides commitment recommendations based on usage from your last 30 days. The recommendations are found in:
+## How is a savings plan billed?
+The savings plan is charged to the payment method tied to the subscription. The savings plan cost is deducted from your Azure Prepayment (previously called monetary commitment) balance, if available. When your Azure Prepayment balance doesn't cover the cost of the savings plan, you're billed the overage. If you have a subscription from an individual plan with pay-as-you-go rates, the credit card you have in your account is billed immediately for up-front and for monthly purchases. Monthly payments that you've made appear on your invoice. When you get billed by invoice, you see the charges on your next invoice.
 
+## Cancellation and refund policy
+Savings plan purchases can't be canceled or refunded.
+
+## Determine your savings plan commitment
+Azure provides commitment recommendations based on your savings plan eligible on-demand usage, your pay-as-you-go rates (inclusive of any discounts) and the 1- and 3-year savings plan rates. The recommendations are found in:
 - [Azure Advisor](https://portal.azure.com/#view/Microsoft_Azure_Expert/AdvisorMenuBlade/%7E/score)
 - The savings plan purchase experience in the [Azure portal](https://portal.azure.com/)
 - Benefit [Recommendation APIs](/rest/api/cost-management/benefit-recommendations/list)
+To learn more, visit [Savings plan recommendations](purchase-recommendations.md).
 
-Some compute products can benefit from both savings plans and reservations. If you buy either a savings plan or a reservation, allow at least 7 days for recommendation systems to update and reflect your purchase before considering the other option. Avoid purchasing both products at the same time to ensure recommendations are accurate and to maximize your savings.
-
-For more information, see [Choose a savings plan commitment amount](choose-commitment-amount.md).
-
-## Buy a savings plan
-
-You can purchase savings from the [Azure portal](https://portal.azure.com/) and APIs. For more information, see [Buy a savings plan](buy-savings-plan.md).
+## How savings plan benefits are applied
+With savings plan, hourly usage charges incurred from [savings plan-eligible resources](https://azure.microsoft.com/pricing/offers/savings-plan/#how-it-works), which are within the benefit scope of the savings plan, are discounted and applied to your hourly commitment until the hourly commitment is reached. The savings apply to *all eligible resources*. Usage charges above the commitment are billed at your on-demand rate.
 
 ## How to find products covered under a savings plan
-To learn about included products, visit [included compute products](download-savings-plan-price-sheet.md).
+To learn about included products, visit [included products](download-savings-plan-price-sheet.md).
 
-## How is a savings plan billed?
-The savings plan is charged to the payment method tied to the subscription. The savings plan cost is deducted from your Azure Prepayment (previously called monetary commitment) balance, if available. When your Azure Prepayment balance doesn't cover the cost of the savings plan, you're billed the overage. If you have a subscription from an individual plan with pay-as-you-go rates, the credit card you have in your account is billed immediately for up-front and for monthly purchases. Monthly payments that you've made appear on your invoice. When you get billed by invoice, you see the charges on your next invoice.
+## Which customers may purchase savings plans
+Savings plans are available to organizations with either Enterprise Agreement (EA), Microsoft Customer Agreement (MCA), or Microsoft Partner Agreement (MPA) agreements. Enterprise Agreement customers must have an offer type of MS-AZR-0017P (EA) or MS-AZR-0148P (DevTest) to purchase savings plans.
 
 ## Who can buy a savings plan?
 To determine what roles are permitted to purchase savings plans, see [Permissions to buy a savings plan](permission-buy-savings-plan.md).
@@ -73,15 +96,9 @@ With sufficient permissions, you can view the savings plan and usage in the Azur
 ## Manage savings plan after purchase
 To understand which properties and settings of a savings plan can be modified after purchase, see [Manage savings plans](manage-savings-plan.md).
 
-## Cancellation and refund policy
-Savings plan purchases can't be canceled or refunded.
-
 ## Changes to savings plans discounts
 Like the pay-as-you-go model, prices under savings plans are subject to change. All price changes take effect on the first day of the month. Regardless of when an active savings plan was purchased, current savings plan pricing is used when applying savings plan benefits.
 
-## Charges covered by savings plan
-A savings plan covers compute charges from [savings plan-eligible products](https://azure.microsoft.com/pricing/offers/savings-plan-compute/#Select-services). It doesn't cover software, networking, or storage charges. For Windows virtual machines and SQL Database, the savings plan discount doesn't apply to the software costs. You might be able to cover the licensing costs with [Azure Hybrid Benefit](https://azure.microsoft.com/pricing/hybrid-benefit/).
-
 ## Need help? Contact us.
 If you have savings plan questions, contact your account team, or [create a support request](https://portal.azure.com/#blade/Microsoft_Azure_Support/HelpAndSupportBlade/newsupportrequest). Temporarily, Microsoft only provides savings plan expert support requests in English.