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Copy file name to clipboardExpand all lines: articles/cost-management-billing/savings-plan/buy-savings-plan.md
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## Need help?
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If you have a 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 answers to expert support requests in English for questions about savings plan.
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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 answers to expert support requests in English for questions about savings plan.
Copy file name to clipboardExpand all lines: articles/cost-management-billing/savings-plan/choose-commitment-amount.md
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# Choose a savings plan commitment amount
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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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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-year), [benefit scope](scope-savings-plan.md) (shared, subscription), and look back period (7-, 30-, or 60-day). 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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Some 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.
Copy file name to clipboardExpand all lines: articles/cost-management-billing/savings-plan/decide-between-savings-plan-reservation.md
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## Compare reservations with savings plans
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When you opt for reservations, you're making a commitment to use a specific type of compute instance or instance family, in a specific Azure region, for a set period of time. For example, you might commit to using a D2v4 virtual machine in the Japan East region for one year. An savings plan involves committing to a specific hourly expenditure on eligible compute services across all Azure regions for a certain period. For instance, you might commit to spending $5.00 per hour for three years. Reservations only apply to the specified compute service and region combination. Savings plan benefits are applicable to all usage from participating compute services across the globe, up to the hourly commitment.
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When you opt for reservations, you're making a commitment to use a specific type of compute instance or instance family, in a specific Azure region, for a set period of time. For example, you might commit to using a D2v4 virtual machine in the Japan East region for one year. A savings plan involves committing to a specific hourly expenditure on eligible compute services across all Azure regions for a certain period. For instance, you might commit to spending $5.00 per hour for three years. Reservations only apply to the specified compute service and region combination. Savings plan benefits are applicable to all usage from participating compute services across the globe, up to the hourly commitment.
Copy file name to clipboardExpand all lines: articles/cost-management-billing/savings-plan/discount-application.md
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# How a savings plan discount is applied
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Savings plans save you money when you have consistent usage of Azure compute resources. An savings plan can help you save money by allowing you to commit to a fixed hourly spend on compute services for one-year or three-year terms. The savings can significantly reduce your resource costs by up to 65% from pay-as-you-go prices. Discount rates per meter vary by commitment term (1-year or 3-year), not commitment amount.
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Savings plans save you money when you have consistent usage of Azure compute resources. A savings plan can help you save money by allowing you to commit to a fixed hourly spend on compute services for one-year or three-year terms. The savings can significantly reduce your resource costs by up to 65% from pay-as-you-go prices. Discount rates per meter vary by commitment term (1-year or 3-year), not commitment amount.
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Each hour with a savings plan, your eligible compute usage is discounted until you reach your commitment amount – subsequent usage after you reach your commitment amount is priced at pay-as-you-go rates. A resource within the savings plan's scope must generate the usage to be eligible for a savings plan benefit. Each hour's benefit is _use-it-or-lose-it_, and can't be rolled over to another hour.
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The benefit is first applied to the product that has the greatest savings plan discount when compared to the equivalent pay-as-you-go rate (see your price list for savings plan pricing). The application prioritization is done to ensure that you receive the maximum benefit from your savings plan investment. We multiply the savings plan rate to that product's usage and deduct the result from the savings plan commitment. The process repeats until the commitment is exhausted (or until there's no more usage to consume the benefit).
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A savings plan discount only applies to resources associated with Enterprise Agreement, Microsoft Partner Agreement, and Microsoft Customer Agreements. Resources that run in a subscription with other offer types don't receive the discount.
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Here's a video that explains how an savings plan is applied to the compute environment.
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Here's a video that explains how a savings plan is applied to the compute environment.
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## Savings plan and Azure consumption discounts
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In most situations, an savings plan provides the best combination of flexibility and pricing. If you're operating under an Azure consumption discount (ACD), in rare occasions, you might have some pay-as-you-go rates that are lower than the savings plan rate. In these cases, Azure uses the lower of the two rates.
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In most situations, a savings plan provides the best combination of flexibility and pricing. If you're operating under an Azure consumption discount (ACD), in rare occasions, you might have some pay-as-you-go rates that are lower than the savings plan rate. In these cases, Azure uses the lower of the two rates.
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For example, VM _X_ has the highest savings plan discount of all savings plan-eligible resources you used in a particular hour. If you have an ACD rate that is lower than the savings plan rate, the ACD rate is applied to your hourly usage. The result is decremented from your hourly commitment. The approach ensures you always get the best available rate.
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## Benefit allocation window
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With an savings plan, you get significant and flexible discounts off your pay-as-you-go rates in exchange for a one or three-year spend commitment. When you use an Azure resource, usage details are periodically reported to the Azure billing system. The billing system is tasked with quickly applying your savings plan in the most beneficial manner possible. The plan benefits are applied to usage that has the largest discount percentage first. For the application to be most effective, the billing system needs visibility to your usage in a timely manner.
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With a savings plan, you get significant and flexible discounts off your pay-as-you-go rates in exchange for a one or three-year spend commitment. When you use an Azure resource, usage details are periodically reported to the Azure billing system. The billing system is tasked with quickly applying your savings plan in the most beneficial manner possible. The plan benefits are applied to usage that has the largest discount percentage first. For the application to be most effective, the billing system needs visibility to your usage in a timely manner.
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The savings plan benefit application operates under a best fit benefit model. When your benefit application is evaluated for a given hour, the billing system incorporates usage arriving up to 48 hours after the given hour. During the sliding 48-hour window, you might see changes to charges, including the possibility of savings plan utilization that's greater than 100%. The situation happens because the system is constantly working to provide the best possible benefit application. Keep the 48-hour window in mind when you inspect your usage.
Copy file name to clipboardExpand all lines: articles/cost-management-billing/savings-plan/permission-buy-savings-plan.md
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---
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title: Permissions to buy an savings plan
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title: Permissions to buy a savings plan
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titleSuffix: Microsoft Cost Management
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description: This article provides you with information to understand who can buy an savings plan.
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description: This article provides you with information to understand who can buy a savings plan.
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author: nwokolo
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ms.reviewer: onwokolo
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ms.service: cost-management-billing
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ms.author: onwokolo
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---
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# Permissions to buy an savings plan
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# Permissions to buy a savings plan
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Savings plan discounts only apply to resources associated with subscriptions purchased through an Enterprise Agreement, Microsoft Customer Agreement, or Microsoft Partner Agreement. You can buy a savings plan for an Azure subscription that's of type Enterprise Agreement (MS-AZR-0017P or MS-AZR-0148P), Microsoft Customer Agreement, or Microsoft Partner Agreement. To determine if you're eligible to buy a plan, [check your billing type](../manage/view-all-accounts.md#check-the-type-of-your-account).
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Partners can use **Home** > **Savings plan** in the [Azure portal](https://portal.azure.com/) to purchase savings plans on behalf of their customers.
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As of June 2023, partners can purchase an savings plan through the Partner Center. Previously, the savings plan was only supported for purchase through the Azure portal. Partners can now purchase an savings plan through the Partner Center portal or APIs. They can also continue to use the Azure portal.
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As of June 2023, partners can purchase a savings plan through the Partner Center. Previously, the savings plan was only supported for purchase through the Azure portal. Partners can now purchase a savings plan through the Partner Center portal or APIs. They can also continue to use the Azure portal.
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To purchase an savings plan by using the Partner Center APIs, see [Purchase savings plans](/partner-center/developer/azure-purchase-savings-plan).
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To purchase a savings plan by using the Partner Center APIs, see [Purchase savings plans](/partner-center/developer/azure-purchase-savings-plan).
Copy file name to clipboardExpand all lines: articles/cost-management-billing/savings-plan/permission-view-manage.md
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-**Savings plan administrator**: Allows [management](manage-savings-plan.md) of one or more savings plans in a tenant and [delegation of RBAC roles](/azure/role-based-access-control/role-assignments-portal) to other users.
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-**Savings plan purchaser**: Allows purchase of savings plans with a specified subscription.
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- Allows savings plans purchase or [reservation trade-in](reservation-trade-in.md) by nonbilling admins and nonsubscription owners.
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- Savings plan purchasing by nonbilling admins must be enabled. For more information, see [Permissions to buy an savings plan](permission-buy-savings-plan.md).
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- Savings plan purchasing by nonbilling admins must be enabled. For more information, see [Permissions to buy a savings plan](permission-buy-savings-plan.md).
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-**Savings plan contributor**: Allows management of one or more savings plans in a tenant but not delegation of RBAC roles to other users.
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-**Savings plan reader**: Allows read-only access to one or more savings plans in a tenant.
Copy file name to clipboardExpand all lines: articles/cost-management-billing/savings-plan/purchase-recommendations.md
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When you [trade-in](reservation-trade-in.md) one or more reservations for a savings plan, you're shifting the balance of your previous commitments to a new savings plan commitment. For example, if you have a one-year reservation with a value of $500, and halfway through the term you look to trade it for a savings plan, you will still have an outstanding commitment of about $250. The minimum hourly commitment must be at least equal to the outstanding amount divided by (24 * the term length in days).
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As part of the trade in, the outstanding commitment is automatically included in your new savings plan. We do it by dividing the outstanding commitment by the number of hours in the term of the new savings plan. For example, 24 times the term length in days. And by making the value the minimum hourly commitment you can make during as part of the trade-in. Using the previous example, the $250 amount would be converted into an hourly commitment of about $0.029 for a new one-year savings plan. If you're trading multiple reservations, the total outstanding commitment is used. You can choose to increase the value, but you can't decrease it.
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As part of the trade in, the outstanding commitment is automatically included in your new savings plan. We do it by dividing the outstanding commitment by the number of hours in the term of the new savings plan. For example, 24 times the term length in days. And by making the value the minimum hourly commitment you can make as part of the trade-in. Using the previous example, the $250 amount would be converted into an hourly commitment of about $0.029 for a new one-year savings plan. If you're trading multiple reservations, the total outstanding commitment is used. You can choose to increase the value, but you can't decrease it.
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The minimum value doesn't necessarily represent the hourly commitment necessary to cover the resources that were covered by the exchanged reservation. If you want to cover those resources, you most likely need to increase the hourly commitment. To determine the appropriate hourly commitment, see [Determine savings plan commitment needed to replace your reservation](reservation-trade-in.md#determine-savings-plan-commitment-needed-to-replace-your-reservation).
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