Azure Cost Optimization

Reserved Instances vs. Savings Plans

An interactive decision guide for choosing the right Azure commitment model. Click through the decision tree or compare dimensions side by side.

Answer each question to get a recommendation.
DIMENSION RESERVED INSTANCE SAVINGS PLAN EDGE
Most mature Azure environments use a layered approach — not exclusively one or the other.
LAYER 1 — STABLE FLOOR 40–60% of base compute
Reserved Instances
Cover known, long-lived workloads pinned to specific SKUs and regions. Domain controllers, SQL clusters, core app servers. Maximum discount.
LAYER 2 — FLEXIBLE MIDDLE 20–40% of base compute
Savings Plan
Cover compute that's significant but shifting — dev/test, scaling tiers, multi-service workloads, teams in growth mode.
LAYER 3 — ELASTIC TOP 10–30% of peak compute
Pay-as-you-go + Spot VMs
Burst capacity, batch jobs, CI/CD runners, ephemeral workloads. No commitment needed — use Spot VMs for up to 90% savings on interruptible work.
Gov Cloud note: In Azure Government regions (IL4/IL5), workloads are inherently pinned to specific regions with limited migration options. This makes Reserved Instances especially attractive for the stable floor layer, since the region-lock trade-off is already a given.