Optimising your cloud costs with Azure Reserved VM Instances

Public Cloud

If you think your public cloud is well optimised and costing what it should – you may well be wrong. In a recent customer study, 45% of respondents running services on a Public Cloud platform are looking at running cost efficiency exercises but what options are available?

With the introduction of Azure Reserved VM Instances (RIs), Microsoft have provided another option for optimising costs in the Cloud. Azure RIs offer opportunities for up to 82% savings (yes, that wasn’t a typo!) when compared to Pay as You Go rates and the flexibility needed for changing business needs.

For an upfront payment Azure RIs provide the ability to reserve Virtual Machine capacity for a 1-year or 3-year term and because of that long-term commitment, they are available at a reduced rate when compared to pay-as-you-go prices and significant savings can be made by purchasing RIs.

It’s worth to note that savings are dependent on region, instance type and Windows licensing requirements but can still be as high as 72%. When you combine the benefits of an RI with the Azure hybrid benefit that saving increases to up to 82% (yes, I’ve said it again!)

In addition to the savings, Azure RIs provide budget predictability and give prioritised usage of Azure compute capacity – by reserving that capacity you can ensure mission critical workloads are deployed before any other type of VM deployment.

And if that isn’t tantalising enough, Azure RIs offer a great deal of flexibility. If workloads or application requirements change during the course of an RI term, it can be exchanged to a new instance family, size, location and term. The time remaining on the current RI will serve as credit applied to the next RI purchase. There is no fee for carrying out the exchange, the only caveat is the new RI purchase must be of equal or greater value than the pro-rated amount.

As well as exchanging, there is the option to cancel the RI, so if the RI is underutilised and there is no need to exchange, you can thankfully, cancel. You’ll receive a pro-rated refund minus a small 12% early termination fee.

The bottom line is, purchasing in RIs offers significant discounts on your cloud spend!

You may well say this is all very interesting but how do I go about finding out how much I could save. Well we’ve thought about that too.

ANS offer a no obligation Cloud Check Service for organisations already using public cloud.  So whether you need to reduce platform spend, validate your security or increase operational efficiency, we will help you achieve best practice by delivering an architecture efficiency report with key recommendations.

You can find out more about our Cloud Check Service here.

Posted by Dale Marshall