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The application of the reservation to the VM infrastructure costs for Windows VMs is the same as for non-Windows VMs. When you're running Windows VM instances, the reservation is applied to cover the infrastructure costs. To understand and view the application of your Azure Reservations in billing usage reports, see Understand reservation usage. You’re charged the pay-as-you-go rate for the remaining 0.5 hours. Instance 1 is fully covered by the reservation and 0.5 hours of instance 2 is covered.

For hour 4, instance 1 runs for 0.5 hours and instance 2 runs for 1 hour.

One instance is covered by the reservation and the other is charged at pay-as-you-go rates.

For hour 2 and hour 3, both instances ran for 1 hour each.

You're charged the pay-as-you-go rates for the remaining 0.25 hours.

In hour 1, instance 1 runs for 0.75 hours and instance 2 runs for 0.5 hours.

You're not charged for any usage below the reservations line, since it has been already paid as part of reservation purchase.

Any usage that's above the reservation line gets charged at the regular pay-as-you-go rates.

The illustration is based on one reservation purchase and two matching VM instances. The following graph illustrates the application of a reservation to billable VM usage. In the event a VM doesn't run for an hour or concurrent VMs within the hour don't fill the hour of the reservation, the reservation is underutilized for that hour. At the end of the hour, the reservation application for VMs in the hour is locked.

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For VMs that may not run the full hour, the reservation will be filled from other VMs not using a reservation, including concurrently running VMs. The reservations that you have purchased are matched to the usage emitted by the running VMs to apply the reservation discount.

The Azure reservation discount is applied to running VM instances on an hourly basis. Deallocate or delete VM resources or scale-in other VMs to use your available reservation hours with other workloads. Stopped VMs are billed and continue to use reservation hours. If no matching resources are found in the specified scope, then the reserved hours are lost. When you deallocate, delete, or scale the number of VMs, the reservation discount automatically applies to another matching resource in the specified scope. You can't carry forward unused reserved hours. So, if you don't have matching resources for any hour, then you lose a reservation quantity for that hour. Any additional software is charged separately.Ī reservation discount is " use-it-or-lose-it".

The Windows software costs are covered by the Azure Hybrid Benefit. The reservation covers the infrastructure costs. You're charged for Windows software and for additional software. Windows VMs with additional software (For example, SQL server) Linux VMs with software charges (For example, Red Hat) The reservation covers your VM infrastructure costs. In all cases, you're charged for storage and networking at the normal rates. The following table illustrates the costs for your virtual machine after you purchase a Reserved VM Instance. Azure doesn't offer reservations for Spot VMs.