>> Welcome back to another episode of the Azure Enablement Show.
Today we're going to talk about
the Azure savings plan for compute and
how this can help customers to
save money for their compute services,
especially when you compare it to the pay-as-you-go pricing.
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Welcome back. My name is
Thomas and I'm here with Kyle to talk about
the Azure savings plan for compute and how this
can help save you money for you compute services.
Now, we have a ton of different offerings when it
comes to compute offerings like spots, VMs,
reservations and many,
many more which help our customers to
be more efficient when it comes to pricing.
However, we recognize that there we can do more
to make sure that you can optimize your costs.
I'm excited to have Kyle with me today,
who will talk about the Azure savings plan for compute.
Kyle, first of all, great to have you.
Secondly, can you tell me or
us what the Azure savings plan for compute is.
>> Thomas, happy to be on
the show and thank you so much for having me.
I'm very excited to talk about the Azure saving space for compute.
Its latest offering to Microsoft has for our customers to
help grow their Cloud consumption while being cost optimize.
Saving space for compute is the new savings plans where
customers can commit to an early commitment that
say five dollars an hour for one or three years.
Up to that five dollars an hour customers will get
a reduced savings plan price
versus pay-as-you-go on a select compute services.
>> That's fantastic. If I'm a customer and I know that I
actually commit to run compute services in Azure,
this will definitely help me.
Can you tell me a little bit more how
this will actually help me and
what the benefits are of the savings plan.
>> Definitely, there's a few benefits that I'd highlight that
come with the Azure saving space for compute.
One is what we just talked about.
You're going to save significantly versus
pay-as-you-go prices on a select compute services.
The second one is that the savings
automatically apply to your compute environment.
The way it works is that saving plan is going
to look at a customer's entire computing environment
and identify what services it can be applied to you and make
sure the customer gets a high savings with their savings plans.
An example would be if a customer had
a VM running and with
savings plans they would get a five percent savings.
Yet another VM, and they would get a 20 percent savings.
Savings plans are going to apply
to the VM that's going to give them
the 20 percent statements
because the customers can save more money that way.
Also with the flexibility of savings plans,
because you're not tied down to a specific instance series,
a region or operating system,
customers can modernize their workloads,
adapter compute environments to their business needs
without having to worry about the savings plans being impacted.
The last benefit that comes with savings plans is
the flexibility on how you want it
to be applied to your environment.
With savings plans, you can choose the billing frequency,
the hourly commitment, where it can
be applied to and the term length.
We'll go into a little bit more details on
those in a demo coming up.
>> This is fantastic. Absolutely,
I love that we give the customer
the flexibility when it comes to the savings.
It's not that he needs to think in advance.
What do I need over
the next couple of years to get really the benefit?
We're really making sure that he gets the most out of it.
We're not we don't want him to manage
something more just to save even more cost.
Secondly, what I also like what you just mentioned is like
how we can like if you're in charge of managing this,
to assign it to different management groups,
resource groups and so on.
We're going to have a look at that as you
just mentioned in just a bit.
That's absolutely fantastic.
Now how does that actually work?
>> Let's say for an example that you
purchase a savings plans for one-year for five dollars an hour.
If your usage is below or at the five dollar per hour commitment,
you're going to be billed at their lower prices.
Note that you're going to be billed five dollar
an hour regardless of your usage.
If for an hour that
your usage is above the five are our commitment,
you're going to get billed
pay-as-you-go pricing on a separate line item.
>> Well, that sounds pretty simple.
Can you show me how we can get
started with Azure savings plans for compute?
>> Yes, definitely. In your Azure portal,
you can go to your cost management and billing section.
In here, if you scroll down to the products and services,
you're going to see savings plans come up on
the left. You click on that.
Then here in our environment here we
have one that's already purchased.
But if you wanted to purchase a brand new one,
you go to add.
Then here you'll be prompted with
a question that I referred to below,
giving you the flexibility to see
how this is going to be built in your environment.
You can change the name of the savings plan,
the billing subscription you want it to be applied to.
Then also here you can choose at
what level do you want to save misspent that be applied to you?
Do you want it to go across the entire building scope?
Only wants specific subscription
resource group or a management group.
Again, we want customers have the flexibility
to get the most benefit out of the savings plan.
The next option you'll be prompted to is
a term length one or three years.
The inherent, you can choose the hourly commitment,
and then the billing frequency can choose
all upfront or monthly and no extra cost.
Once you decide what you want to do,
you go to next review and by you get
a overall review summary of what you've purchased or what
you selected and then click "Buy Now" and it
will automatically start applying to your environment.
>> That's super cool. It looks like it's like super easy
to set up the savings plan for environment.
Once I set these up,
how can I see the current utilization and
like how I can see how I'm doing basically in my environment.
>> That's a great question. If we go back
out to the Cost Management and Billing,
and we go to the Savings plan section,
as I mentioned before,
we have a purchase statements plans already for this environment.
You click on the one that you've purchased,
you can have multiple savings plans,
but click on the one you wanted to review.
Down here you see a utilization over time.
Then there's a chart that you can see what the utilization has
been over the past seven days,
one month, three months,
or you can customize it.
This is a great way to monitor and make sure that you're getting
the most utilization in
value out of the savings plans that you've purchased.
>> More fantastic. I really want to make sure that
I have utilization on what I purchased. That's great.
Earlier we talked about
that if I'm managing the budget and the savings and so on,
that I can assign these to
different scopes such as subscription management groups.
Can you show me like how I would do that?
>> Yes. As mentioned before,
you can do it at purchase,
but also say again, your needs change.
Different decisions have been made either the changes
scope of where the savings plans can be applied to you.
Same thing, you stay in
the same savings planes that you want to focus in on.
Go to configuration under settings.
In here if you want to change the management group,
the single subscription or single resource group,
so even post-purchase, you had
the option to change the scope of where this has been applied to.
>> This is fantastic. I can really set and manage where I want to
assign to saving plan to if it's
a different management group subscription or even resource group.
That is great. Now,
one of the question which comes up is,
how does the Azure savings plan for compute compare
to reserved instances? Do they work together?
>> That's a great question.
Reserved instances aren't going away.
Reserved instances are more
suited for stable, predictable workloads.
While seamless planes, as mentioned before,
is more suited for
dynamic workloads that have maybe planned or unplanned changes.
The good news is that they work together.
RIs would be say,
you have a fleet of RIs and savings plans.
The RIs will be applied
first to your computing environment because again,
RIs you need, there's
more specific requirements to
VM-Series to region an operating system.
Then once that's fully applied,
anything that's left over of
the compete usage will be picked up by the savings plans.
They work together. Again, different workloads
work for Azure for savings plans.
But again, it they did work together and RIs are not going away.
>> Well, that's fantastic.
I love that they are working together.
If I'm like really stable and I know and can predict
exactly what VM size I'm using for the next couple of years,
I'm going to probably use reserved instances.
But if I want to have an need
more flexibility but still want to do to savings,
I go into basically use Azure saving plan,
which makes it easier for me to see
or to like save money across different things I want to do.
That is fantastic. Kyle,
I'm excited about this.
I'm sure our viewers to.
If I want to learn more about this, where do I go?
>> That's great question. There is a URL that's going to be
posted on this channel and you click on
there and there we have the FAQs,
break gets house payments, plants work.
I highly encourage you,
anyone that's interested in savings plans, you go to that URL,
look around, there's great information in there,
so that would be a great first place to get started.
>> Thank you very much, Kyle, this was absolutely great.
Thank you to everyone watching.
Make sure you check out and aka.ms/cm. [MUSIC]