And today we're going to do a deep
dive on Azure Reservations. I am.
Yashesvi Sharma, PM for Azure Reservations.
So key topics that we will cover today.
How to get prices and recommendations
for the reservation purchase?
What are the scoping options
with the reservations?
What are the permissions and controls
related to reservation purchase?
Who can purchase who can manage and
what if you want to disable or enable
reservation purchases in your organization?
Reservation reports after your purchase
reservation you want to see the utilization
you want to see the cost management
reports we're going to cover that.
What if your needs change after
your purchase reservation?
You want to exchange.
You want to change the scoping of it.
Want to apply to a different subscription?
We will cover that.
And last is how to renew your reservation
once it's at the end of life.
Before we go through details,
let's just do a summary first.
What are reservations,
reservations let you commit to use the
service on Azure and get great discounts.
In return lets you bring your cost down.
And get predictable month or month spend.
They are available for most popular
services for compute databases,
storage, analytics and we are
always adding new services,
so there's always something
on which you can save.
They are flexible.
And.
They can save money,
but what I mean by that is you can
purchase for one or three years you
can purchase upfront or monthly.
They automatically apply to your resources.
You don't need to shut down or tag
your resources to a reservation.
Reservation will automatically
apply to a matching resource.
They apply to all sizes and instance size.
Flexibility group.
And you can exchange your
counsel if your needs change.
And then it gives you the
controls that you need.
You can apply to a resource
Group A subscription EA or a
billing group billing profile.
You can choose to centralise the
purchases so only your billing admins or
purchasers can purchase the reservations.
And we provide very image showback
chargeback reports that can be consumed
by your phone apps for cost reporting.
So the next topic is how
to get reservation prices.
There are three ways that you
can get reservation prices.
First, you can go to Azure Calculator.
Second, you can use the API pricing API.
3rd,
you can use the reservation purchase
experience to see the prices.
So let's go through the Azure Calculator.
Then you go to the Calculator,
click sign in and once you do that,
scroll all the way down and select the
account licensing program in which
you are and that sets the pricing on
the Calculator to match your program.
So it shows your pricing on Azure Calculator.
After that just select the size,
the region that you want to
purchase a reservation for,
and then you can see your
pay as you go rates.
You can see the reservation rates
and you can see the discounts which
are applicable to you based on your
pricing on that program.
You can also, as I said earlier,
you can use the API to get your pricing.
You can also go to the reservation
purchase experience and select the SKU.
And it will show you the price of that SKU.
And the discount percentage which is
applicable to you based on your pricing.
So that's how you can get
the prices for reservations.
The next topic is reservation
recommendations, how to use reservation
recommendations to make decisions.
First of all,
we calculate the recommendations
based on your usage pattern and based
on your prices and we recommend the
quantity that maximizes your savings,
and I'll show that in the demo
little bit later.
But to calculate our recommendation,
we look at your usage pattern
over last 730 and 60 days.
We use your usage pattern,
your prices to figure out the sweet
spot that saves you the most money.
You can get the recommendations in
the reservation purchase experience.
You can get them from Azure advisor.
You can get them from API's and you
can also see the recommendations in
the cost management power BI app.
You can also see the recommendation
details in the purchase experience and
we're going to cover that in the demo.
So let's go to Azure Portal,
search for reservations.
And you will see the list of reservations
that you have purchased here.
The ones that are expiring soon.
And the utilization percentage.
I hit add to purchase a new reservation.
This is where you can see the
list of products for which we
offer reserved instances.
And in this case I'm going
to go into virtual machines.
What we are showing you is the list
of SKUs which are recommended.
To you and the quantities that are
recommended based on your usage
pattern over last 7, 30 and 60 days.
We calculate these recommendations
By analyzing the usage pattern.
So in this case you can
see that DS1V2 in East US.
Over last 30 days,
this was the usage pattern.
It has a pretty consistent baseline usage
of seven quantity and then some spikes.
We recommended 7 quantity here because that
seven quantity saves you the most money.
And you can see that in the
savings by quantity.
Dab so at 7 you're saving $6000.
If you buy less quantity.
Your savings are reduced.
And if you buy more quantity.
Again, your savings are reduced,
so we recommend the point.
That saves you the most money.
And we use your users’ data and your pricing.
To calculate these recommendations.
Now I'm going to look at a
different VM size in which
we have more variable usage.
So here I am going to pick up
F4 S V2 in Southeast Asia.
And my usage pattern used to
be consistent almost and now
it has ramped up quite a bit.
But because we are looking at last
30 days, my recommendation is 4.
I change it to 7 days.
And based on the new baseline
over last seven days,
my recommendation is 8 quantity.
So now you can see.
With the new baseline,
here is the usage pattern,
and eight is the quantity
that saves you the most money.
You buy less, you buy more,
your savings are reduced.
So hopefully this helps you understand
how we calculate these recommendations.
And makes your purchasing
decision a little bit easier.
Scoping options for reservations.
There are three scoping
options for reservations.
The recommended option is shared scope.
When your reservation will apply
to all the subscriptions which are
in your EA or your billing profile.
On your account, if you are in pairs, you go.
This is the recommended one as that
maximizes your utilization and savings.
If you are choosing reservation
for an individual subscription
owner or a resource group owner,
you can scope the reservation to
that subscription or resource group,
but the reservation benefit only
applies to that subscription or
resource group and nowhere else.
Usually used when reservation is
meant to be used only for that scope.
So how to scope your reservations
to one of these three scopes
that we spoke about when you go
to purchase experience,
you will see the scoping
option and you will see the.
Shared single subscription single
resource group to select that
scope and purchase the reservation.
It will apply to the scope that you selected.
You can always change it after you have
purchased the reservation as well.
So if you want to move it from shared,
To single subscription or one
subscription one to subscription two,
you can change that after the
reservation has been purchased as well.
So reservation controls and permissions.
Your billing administrator can restrict
reservation purchases to themselves
by turning off reservation purchases
from the air Portal or Azure portal
for Microsoft Customer Agreement.
When you do that,
other subscription owners in the
organization cannot purchase and
only the billing users can purchase.
You need to be a billing administrator,
owner, contributor,
or purchaser to purchase the
reservations then.
But choosing permissions again.
As I said,
billing admins can purchase reservation
for any scope or subscription.
Users who aren't billing admins can
purchase reservations if they have
subscription owner or reservation purchase.
Purchaser permission on the
subscription and if the purchase
is enabled by the billing admin
who can manage the reservations.
Billing admins can manage all
reservations so they can go to
cost management and billing and
they can see all reservations which
are purchased using the EA or the
billing profile.
If you are not a billing admin.
Then you will see the reservations that
you have purchased or the reservations
that you have been explicitly added to.
So next we're going to talk
about reservation reports which
are available to you after you
have purchased a reservation.
You can see the utilization
of the reservation.
How it's trending,
what's the current utilization
percentage is and what it has
been in last few days or years?
You can view the charge back show back report
which shows you the dollar amount of usage
by reservation at individual resources.
And you can see reservation transactions in.
Cost management and billing.
Now we'll go and see the demo
about reservation utilization
after your purchase reservation.
You can see the utilization of
those reservations in the portal.
So here is my reservation which is 46% used.
The other one is 80% used.
Let's click on this number
to see what's happening.
So when. Click on it,
it shows me what my utilization
pattern has been over last seven days.
One month, three month, one year, etc.
I can breakdown that utilization
by subscriptions,
so it shows me that I used it
across those three subscriptions and
then these three resource groups.
And this reservation I have a little
bit of 60% under utilization,
so that's also shown here in this chart.
So now we saw how you can monitor the
reservations utilization after purchase.
Next,
let's see how you can see the reservation
costs in the cost management report.
How you can see which resource
use the reservation for how many
dollars on what date.
So in cost management you
will see two datasets.
One is actual cost,
which is shown by default and then
the amortized cost in actual cost.
The usage that gets the reserved
instance you will see the charge 0
for those you will see purchases,
but when reserved instance gets applied
to a usage you will see the charges 0.
If you want to know which resources
used the reserved instance and for
how many dollars or your currency.
You want to go to amortized cost
and people use this for usually
charge back show back purpose.
So go select a reservation.
And it tells me that 689.44
dollar worth reserved instance
got used in the month of January.
I can go see this data.
In a itemized manner by resources.
So here is the list of VM's that used
this reserved instance, so Pluto Lander.
Use this reserved instance for $172. And.
Ranban used it $407.70 in this month.
The first row that you see there where the
resources the reserved instance itself.
The cost is $366.
You will see that record only when you have
a reservation which is not fully utilized.
And you can differentiate these
records by using charge type filter.
So here is charge type and usage will
show where the reserved instance was
used by resources and it shows you the
resource subscription etc everything.
An unused reservation.
Customers, usually use this.
View for show back charge back
purpose and you can see and get
the exact same data from exports.
If you go to export and
get the amortized data set,
you will see the cost of reserved
instance usage by individual resources.
You will see which reserved instance.
How many dollars are,
how many euros etc currency usage by
different resources and in the charge
type field you can see which was most
usage and which is unused reservation.
Hopefully this helps you understand
how reserved instances show up in
your cost analysis and your raw data,
which you can use for.
Show back in calculating
reservation savings as well.
In the next section,
we're going to go through what you can do,
what options you have,
if your needs change after you
have purchased a reservation,
you have a few options.
You can exchange your reservation.
You can exchange a compute reservation
for another compute reservation.
You can exchange a sequel reservation
for another sequel reservation so
you can do a like to like exchange.
You can change the term.
You can change the region.
You can change the skew
family or billing option.
You can change pretty much everything for
the reservation when you're exchanging.
When we exchange,
we prorate your existing reservation.
And we create a new reservation
with its own one or three year term.
The prorated value of the existing
reservation is returned back to you and
the new reservation is charged separately.
The total value of the exchange.
Should be such that what you're
purchasing is equal to or greater
than what you're returning.
The other operations that you can
perform after you have purchased a
reservation is changing the scope we
spoke about it a little bit earlier.
You can change from shared scope
to single subscription,
or you can change from subscription
one to subscription two etc.
So you can change the scope if
your needs change and you can
also cancel the reservation.
There is limits that apply 50K USD in
a 12 month rolling window and their
expected real person cancellation fee.
You can see the policy and the details
at AKA Dot Ms Slash RI Cancel policy.
Next we have to go see a demo of
how you can exchange a reservation
from the Azure portal.
To begin exchange,
go to Azure Portal reservations.
Search for the reservations that you
want to exchange. For me, these three.
Select and hit the exchange.
Once the reservations are added to exchange,
you will see the quantity added by default.
You can use auto fill return quantity too.
Get recommendation on the quantity
based on your utilization
percentage over last seven days,
so in that case we will auto fill it.
Now here my products are added.
This is what I want to return.
Next I go to purchase I have selected some of
the other products that I want to purchase.
Usually you can exchange
only like to like product.
So SQL for SQL in case of compute
you can exchange virtual machines
with dedicated host and Azure VM
Ware Solutions and vice versa.
Your new purchase should be equal to
or greater than what you're returning.
And when you complete this exchange you
will get new reservations that will have
their own one or three year time duration.
And your old reservations are going to
be cancelled and they will be refunded.
The prorated amount will be
refunded back to you.
So we went through how to purchase,
how to decide what reservation to purchase.
We went through cost management reports.
We went through optimization.
Now you have a reservation.
You are able to use it properly.
Everything is going fine and the
reservation is at the end of its life
cycle and you want to renew at that time.
You can set up automatic renewal
for reservations from Azure Portal.
That's what I'm going to show you in the
next demo after your reservation expires.
Your resources continue to run as they were.
They're not impacted.
Only thing that happens is that you
are charged using the on-demand
rate instead of the reserve rate.
If you don't purchase a replacement
Reservation. Here, I have two reservations.
The first one is expiring.
I have not set up renewal.
I can just click on that off.
I come there and begin the process of
setting up a renewal which is easy peasy.
So I click there.
I set automatically renew this reservation.
And then I can select how much
quantity I want to remove it.
Billing, frequency, term, etc.
And it's as simple as that.
A replacement reservation will be
automatically purchased upon expiry of.
This. Reservation.
Thank you, thanks for watching.
That's what I wanted to cover today.
If you have any feedback,
please go to feedback@azure.com and
we would be happy to hear from you,
thanks.