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AZ-900Chapter 111 of 138Objective 3.1

Azure Reservations and Savings Plans

This chapter covers Azure Reservations and Savings Plans. AZ-900 tests under 3.1.

6 min read
Intermediate
Updated Aug 20, 2026
Editorial oversight: Johnson Ajibi· Security Systems Architect · MSc IT Security · IEEE Senior Member

A simple way to picture Azure Reservations and Savings Plans

Buying in Bulk

Committing to buying 100 items monthly gets you a bulk discount. Azure Reservations offer similar discounts for committing to resource use for 1 or 3 years.

How It Actually Works

Reservations commit to 1 or 3-year resource use, receiving large discounts (20-72% typically). Suitable for stable, predictable workloads.

Walk-Through

1

Identify predictable resources

Determine which resources run consistently.

2

Purchase Reservations

Purchase 1 or 3-year commitments for those resources.

3

Apply discount

Discount applies automatically to matching resources.

What This Looks Like on the Job

A production database running 24/7 is perfect for a 3-year reservation, saving 60% versus pay-as-you-go.

How AZ-900 Actually Tests This

Objective 3.1 expects understanding of Reservations for long-term cost savings.

Key Takeaways

Large discounts for 1-3 year commitments.

Suitable for stable workloads.

Higher upfront cost, lower ongoing cost.

Frequently Asked Questions

What are Azure Reservations?

Commitments to 1 or 3-year resource use that offer significant discounts (20-72% typically), suitable for predictable workloads.

Terms Worth Knowing

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