VM pricing models in Azure - Cheat Sheet & Quick Revision

Recall & Review

beginner

What is the Pay-As-You-Go pricing model for Azure VMs?

Pay-As-You-Go means you pay only for the VM resources you use, billed by the second, with no upfront cost or long-term commitment.

beginner

Explain Reserved Instances in Azure VM pricing.

Reserved Instances let you pre-pay for a VM for 1 or 3 years, offering significant discounts compared to Pay-As-You-Go, ideal for steady workloads.

intermediate

What is the Spot VM pricing model in Azure?

Spot VMs use unused Azure capacity at a deep discount but can be evicted anytime when Azure needs the resources back, suitable for interruptible workloads.

intermediate

How does Azure Hybrid Benefit affect VM pricing?

Azure Hybrid Benefit lets you use your existing Windows Server licenses to reduce the cost of running Windows VMs in Azure, lowering the price you pay for the VM.

beginner

Why choose Reserved Instances over Pay-As-You-Go?

Reserved Instances save money for predictable workloads by committing to a VM for 1 or 3 years, while Pay-As-You-Go offers flexibility without upfront cost.

Which Azure VM pricing model offers the lowest cost but can be interrupted anytime?

A Reserved Instances

B Spot VMs

C Pay-As-You-Go

D Azure Hybrid Benefit

Spot VMs offer the lowest cost by using unused capacity but can be evicted anytime.

What is the main benefit of Reserved Instances in Azure VM pricing?

A Pay only when VM is running

B No upfront cost

C Ability to use existing licenses

D Deep discounts for long-term commitment

Reserved Instances provide deep discounts when you commit to 1 or 3 years.

Azure Hybrid Benefit helps reduce VM costs by:

A Using existing Windows Server licenses

B Pre-paying for VMs

C Paying per second of usage

D Using unused capacity

Azure Hybrid Benefit lets you apply your existing Windows Server licenses to reduce VM costs.

Which pricing model is best for unpredictable or short-term workloads?

A Pay-As-You-Go

B Reserved Instances

C Spot VMs

D Azure Hybrid Benefit

Pay-As-You-Go offers flexibility without upfront commitment, ideal for unpredictable workloads.

What happens if Azure needs capacity back from a Spot VM?

A The VM continues running without interruption

B You are charged extra fees

C The VM is evicted and stopped

D The VM is automatically converted to Reserved Instance

Spot VMs can be evicted anytime when Azure reclaims capacity.

Describe the main Azure VM pricing models and when to use each.

Think about cost, commitment, and workload type.

Explain how Azure Hybrid Benefit can help reduce VM costs.

It involves using licenses you already own.