# Azure Reservations and Savings Plans

> Chapter 111 of the Courseiva AZ-900 curriculum — https://courseiva.com/learn/az-900/azure-reservations

**Official objective:** 3.1 — Azure Management Governance

## Introduction

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

## 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.

## Core explanation

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

## Real-world context

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

## Exam focus

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

## Step by step

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.

## Key takeaways

- Large discounts for 1-3 year commitments.
- Suitable for stable workloads.
- Higher upfront cost, lower ongoing cost.

## FAQ

**What are Azure Reservations?**

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

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Interactive version with quiz and diagrams: https://courseiva.com/learn/az-900/azure-reservations