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Copy file name to clipboardExpand all lines: articles/cost-management-billing/savings-plan/decide-between-savings-plan-reservation.md
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@@ -17,7 +17,7 @@ Azure provides you with two ways to save on your usage by committing for one or
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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. 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.
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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.
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. 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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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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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 a savings plan is applied to the compute environment.
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Here's a video that explains how an 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, 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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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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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 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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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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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 a savings plan
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title: Permissions to buy an 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 a savings plan.
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description: This article provides you with information to understand who can buy an 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 a savings plan
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# Permissions to buy an 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 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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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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To purchase a 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 an 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/savings-plan-overview.md
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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.
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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.
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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).
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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 an savings plan](buy-savings-plan.md).
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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).
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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.
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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).
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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.
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You can buy savings plans in the Azure portal or with the Savings plan API. To learn more, visit [Buy an 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.
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## Why buy a savings plan?
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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.
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For more information, see [Choose a savings plan commitment amount](choose-commitment-amount.md).
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For more information, see [Choose an savings plan commitment amount](choose-commitment-amount.md).
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## Buy a savings plan
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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.
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## Who can buy a savings plan?
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To determine what roles are permitted to purchase savings plans, see [Permissions to buy a savings plan](permission-buy-savings-plan.md).
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To determine what roles are permitted to purchase savings plans, see [Permissions to buy an savings plan](permission-buy-savings-plan.md).
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## Who can manage a savings plan by default?
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To determine which roles are permitted to manage a savings plan, see [Manage savings plan resources](manage-savings-plan.md).
Copy file name to clipboardExpand all lines: articles/cost-management-billing/savings-plan/troubleshoot-savings-plan-utilization.md
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1. Benefit scope - the resource must be within the benefit scope of the savings plan. To learn more, see [Savings plan scopes](scope-savings-plan.md)
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2. Product inclusion - the resource must be an instance of a product that is included in the savings plan model. To learn which products are eligible for savings plan, follow the instruction in [Download your savings plan price sheet](download-savings-plan-price-sheet.md)
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There are numerous reasons that a savings plan may be underutilized. Examples are listed below. In some cases, broadening the savings plan benefit scope can result in greater utilization.
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There are numerous reasons that an savings plan may be underutilized. Examples are listed below. In some cases, broadening the savings plan benefit scope can result in greater utilization.
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-**Custom hourly commitment too large** - it is important to follow purchase recommendations provided through Azure Advisor, the savings plan purchase experience in Azure portal, and through the Savings plan benefit recommendations API. Purchasing an amount greater than the recommended value may result in underutilization, and negatively impact your cost savings goals. To learn more, see [savings plans recommendations](purchase-recommendations.md).
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-**Recent changes in resource usage** - your savings plan eligible usage may have recently decreased. Reasons for these changes include:
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-***VM rightsizing*** - To learn more, see [VM shutdown recommendations](/azure/advisor/advisor-cost-recommendations#shutdown-recommendations)
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Savings plans can temporarily have utilization greater than 100%, as shown in the Azure portal and from APIs.
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Savings plan benefits are flexible and cover usage across various products and regions. Under a savings plan, Azure applies plan benefits to your usage that has the largest percentage discount off its pay-as-you-go rate first, until we reach your hourly commitment.
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Savings plan benefits are flexible and cover usage across various products and regions. Under an savings plan, Azure applies plan benefits to your usage that has the largest percentage discount off its pay-as-you-go rate first, until we reach your hourly commitment.
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The Azure usage and billing systems determine your hourly cost by examining your usage for each hour. Usage of all services that you used in the previous hour is reported to the Azure billing systems. However, usage isn't always sent instantly, which makes it difficult to determine which resources should receive the benefit. To compensate, Azure temporarily applies the maximum benefit to all usage received. This may result in Azure applying benefits that are greater than the hourly commitment. Azure then does extra processing to quickly reconcile utilization back down to 100%. Periods of such overutilization are most likely to appear immediately after a usage hour.
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