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>> Hey, so Azure Advisor
gives me personalized recommendations based on
the Well-Architected Framework so I can better
use my cloud resources. Why don't we take a look?
Let's go to "Advisor", right over here.
I'm going to click on "All recommendations".
This one says "Buy virtual machine
reserved instances to save money over pay-as-you-go costs".
That's a little confusing.
I wish I knew what that meant.
I wish I could have
some Advisor Clinic where I could ask people about this.
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Maybe I can. I happen to have Priyanshi Mittal here,
who is a Product Manager in the Reservations group.
>> Hey, Priyanshi, I'm wondering if you can help me a little bit
with this buy virtual reserved instances thing.
What is this reserved instance
and how does that help me save money or something?
>> Absolutely, that's a great question.
Let me talk a little bit about reservations.
Let's say if you have consistent VM usage
that supports reservations,
buying a reserved instance would actually
give you much more savings and would reduce your costs.
For example, when you continuously are
using instances of VMs without reservations,
you are charged on pay-as-you-go prices.
Once you have or you purchased a reservation,
you immediately get the reservation discount.
The resources are no longer charged at pay-as-you-go rates,
but they're actually charged on the reservation rate.
>> What I'm confused about here is I get would save me,
as a customer money.
But what's in it for Microsoft?
>> Absolutely, and that's a great point.
It's actually also as an advantage for
Azure teams since we can prioritize and
optimize our capacity planning accordingly for VM Instances.
>> Okay, that makes sense.
Can we go into this how's it all work thing?
>> Absolutely. There are multiple ways
where you see the recommendations today.
Definitely, you saw it in the Advisor where it gives you
recommendations for the VMs based on your subscription,
based on dome, etc.
There are different ways you can look
at your reservations recommendations.
Through the purchase blade in Azure Portal,
then we have the cost management Power BI app,
and through APIs as well.
These reservations are either three years or one year
termed and can give you maybe savings up to 72 percent.
Then a reservation is purchased.
It will automatically apply to the applicable resources.
The recommendations that we have today in
Azure would give you the maximum savings.
But you can definitely buy the quantity you would like to,
but it may not give you the right or maximize savings.
>> Okay. That makes sense to me.
Now you've got me curious,
how are these recommendations calculated and how do I
know I've actually got maximize savings?
>> Absolutely, that's a great question.
For this particular question,
I do want to go to my slide here.
How reservation recommendations are calculated are,
we take into account the hourly usage for past 7,
30, and 60 days.
It simulates the costs with and without
reservations and costs for different quantities.
It actually would recommend you
the quantity that maximize savings.
Let's look at a very simple example here.
Let's say that your VM usage is fluctuating from,
let's say, 35 VMs to 70 VMs for last 30 days.
The quantity that it would recommend is 45,
which might not give you 100 percent utilization for your RIs,
but definitely would give you the maximum savings.
>> That makes sense. By RI mean, reserved instance, right?
>> Absolutely, yes. When we say RI,
they are the reserved instances.
>> Okay, cool. I would love to do a lightning round
with you and ask you some of the questions
that I know that we get asked all the time.
>> Sure.
>> The first question I'm curious about is,
does this recommendation from Azure Advisor taken into
account customer discounts when we're talking about this stuff?
>> Yes, they do. They take into account
the on-demand or pay-as-you-go rates for the customers.
>> That seems like an easy question.
Let me try a harder question.
Does that reservation recommendation
include rightsizing stuff that I also get through Advisor?
>> Actually, not today. We are definitely
working on bringing them together so
that the reservation recommendations
take into account the rightsizing recommendations as well.
>> Okay, cool. I will look forward to that.
Last question, is there a way to get a view of
all my reservations and utilization today before I
go ahead and try to figure out what else I'm going to purchase?
>> Absolutely. There are different ways that you can get
a lot of information on reserved instances or reservations.
Definitely, the Power BI cost management app is
one way to look at your coverage as well as the recommendations.
Then the second aspect is you can go look into the portal,
go to the reservations played,
and look at all your reservations that you've already
purchased and the utilization that you have on those RIs.
>> Okay, cool. Now you've got me
wanting to go actually check this out.
I think that's great because now I think
I understand this stuff really well.
I'd like to thank Priyanshi for joining me
today and I'd like to thank all of you for watching this.
I hope that you've learned as much as I have
about reserved instances and how the stuff works.
Thank you very much for joining us and I hope you'll join us on
another episode of Advisor Clinic
as part of the Azure Enablement Show.
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