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Azurecloud~5 mins

Azure Reserved Instances - Commands & Configuration

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Introduction
Azure Reserved Instances let you save money by paying upfront for virtual machines you plan to use for a long time. This helps reduce costs compared to paying as you go.
When you know you will run a virtual machine continuously for one or three years.
When you want to lower your cloud costs for steady workloads like databases or web servers.
When you want to plan your cloud budget with predictable monthly costs.
When you want to reserve capacity in a specific Azure region to ensure availability.
When you want to combine reserved instances with pay-as-you-go for flexible scaling.
Commands
List all your virtual machines with their names, resource groups, locations, and sizes to decide which VM size to reserve.
Terminal
az vm list --query "[].{Name:name, ResourceGroup:resourceGroup, Location:location, Size:hardwareProfile.vmSize}" -o table
Expected OutputExpected
Name ResourceGroup Location Size myVM1 myResourceGroup eastus Standard_DS1_v2 myVM2 myResourceGroup eastus Standard_DS2_v2
→
--query - Filters and formats the output to show only needed fields.
→
-o table - Displays output in a readable table format.
Purchase a reserved instance for one Standard_DS1_v2 virtual machine in the East US region for one year to save costs.
Terminal
az reservations reservation-order create --reserved-resource-type VirtualMachines --sku Standard_DS1_v2 --term P1Y --quantity 1 --location eastus
Expected OutputExpected
{ "id": "/providers/Microsoft.Capacity/reservationOrders/12345678-1234-1234-1234-123456789abc", "name": "12345678-1234-1234-1234-123456789abc", "properties": { "provisioningState": "Succeeded", "term": "P1Y", "quantity": 1, "reservedResourceType": "VirtualMachines", "sku": "Standard_DS1_v2", "location": "eastus" }, "type": "Microsoft.Capacity/reservationOrders" }
→
--reserved-resource-type - Specifies the type of resource to reserve, here virtual machines.
→
--sku - Specifies the VM size to reserve.
→
--term - Specifies the reservation duration, here one year (P1Y).
→
--quantity - Number of reserved instances to purchase.
→
--location - Azure region where the reserved instance applies.
List all your active reservation orders to verify your reserved instances.
Terminal
az reservations reservation-order list
Expected OutputExpected
[ { "id": "/providers/Microsoft.Capacity/reservationOrders/12345678-1234-1234-1234-123456789abc", "name": "12345678-1234-1234-1234-123456789abc", "properties": { "provisioningState": "Succeeded", "term": "P1Y", "quantity": 1, "reservedResourceType": "VirtualMachines", "sku": "Standard_DS1_v2", "location": "eastus" }, "type": "Microsoft.Capacity/reservationOrders" } ]
Key Concept

If you remember nothing else from this pattern, remember: buying reserved instances saves money by committing to use specific virtual machines for a set time.

Common Mistakes
Trying to reserve a VM size that does not match your running VM.
The reserved instance discount only applies if the VM size and region match exactly.
Check your VM size and region carefully before purchasing a reserved instance.
Buying reserved instances without knowing the term commitment.
You pay upfront for one or three years, so canceling early is not possible and can waste money.
Plan your usage duration before buying reserved instances.
Summary
List your current virtual machines to identify which VM size and region to reserve.
Purchase a reserved instance using the Azure CLI with the correct VM size, region, and term.
Verify your reserved instances by listing your reservation orders.

Practice

(1/5)
1. What is the main benefit of using Azure Reserved Instances?
easy
A. Automatically scale virtual machines up and down
B. Save money by pre-paying for virtual machines
C. Create virtual machines without any cost
D. Backup virtual machines to Azure Storage

Solution

  1. Step 1: Understand the purpose of Azure Reserved Instances

    Azure Reserved Instances allow you to pre-pay for virtual machines to get a discount compared to pay-as-you-go pricing.

  2. Step 2: Compare options with this purpose

    Only Save money by pre-paying for virtual machines mentions saving money by pre-paying, which matches the main benefit.

  3. Final Answer:

    Save money by pre-paying for virtual machines -> Option B

  4. Quick Check:

    Reserved Instances = Pre-pay savings [OK]
Hint: Reserved Instances = pre-pay to save money [OK]
Common Mistakes:
  • Confusing Reserved Instances with auto-scaling
  • Thinking Reserved Instances are free
  • Mixing backup features with Reserved Instances
2. Which Azure CLI command is used to purchase a Reserved Instance?
easy
A. az vm create
B. az vm start
C. az storage account create
D. az reservations reservation-order create

Solution

  1. Step 1: Identify the CLI command for Reserved Instances

    The Azure CLI command to purchase Reserved Instances is under the 'az reservations' group, specifically 'reservation-order create'.

  2. Step 2: Eliminate unrelated commands

    Commands like 'az vm create' create virtual machines, not reservations. 'az vm start' starts VMs, and 'az storage account create' creates storage accounts.

  3. Final Answer:

    az reservations reservation-order create -> Option D

  4. Quick Check:

    Purchase Reserved Instance = az reservations reservation-order create [OK]
Hint: Reservations commands start with az reservations [OK]
Common Mistakes:
  • Using VM creation commands to buy reservations
  • Confusing storage commands with reservations
  • Trying to start VMs to create reservations
3. Given this Azure CLI command output snippet after buying a Reserved Instance: 
{
  "id": "/subscriptions/123/resourceGroups/myRG/providers/Microsoft.Capacity/reservationOrders/abc123",
  "properties": {
    "term": "P1Y",
    "appliedScopeType": "Shared",
    "skuName": "Standard_D2s_v3"
  }
}
What does the "term": "P1Y" mean?
medium
A. The reservation lasts for 1 year
B. The reservation is for 1 month
C. The reservation is for 1 day
D. The reservation is permanent

Solution

  1. Step 1: Interpret the term format

    The term 'P1Y' follows ISO 8601 duration format, where 'P' means period and '1Y' means 1 year.

  2. Step 2: Match the term to options

    Only The reservation lasts for 1 year correctly states the reservation lasts for 1 year.

  3. Final Answer:

    The reservation lasts for 1 year -> Option A

  4. Quick Check:

    Term P1Y = 1 year reservation [OK]
Hint: P1Y means period of 1 year in ISO duration [OK]
Common Mistakes:
  • Thinking P1Y means 1 month or 1 day
  • Assuming term means permanent
  • Ignoring ISO 8601 duration format
4. You tried to purchase a Reserved Instance but received an error: "Invalid scope type". What is the likely cause?
medium
A. You specified an unsupported scope type for the reservation
B. You forgot to specify the VM size
C. You used the wrong Azure CLI command
D. Your subscription has no active VMs

Solution

  1. Step 1: Understand the error message

    The error 'Invalid scope type' means the scope type parameter for the reservation is not valid or supported.

  2. Step 2: Analyze other options

    Missing VM size or wrong CLI command would cause different errors. Having no active VMs does not cause this error.

  3. Final Answer:

    You specified an unsupported scope type for the reservation -> Option A

  4. Quick Check:

    Invalid scope type error = wrong scope parameter [OK]
Hint: Check scope type parameter when 'Invalid scope type' error appears [OK]
Common Mistakes:
  • Assuming missing VM size causes this error
  • Using wrong CLI command without checking scope
  • Thinking no active VMs cause scope errors
5. You have a steady workload running 4 Standard_D2s_v3 VMs continuously. You want to save costs using Azure Reserved Instances. Which approach is best?
hard
A. Purchase 4 Reserved Instances for different VM sizes
B. Purchase 1 three-year Reserved Instance for Standard_D2s_v3 VM
C. Purchase 4 one-year Reserved Instances for Standard_D2s_v3 VMs
D. Use pay-as-you-go pricing and scale VMs manually

Solution

  1. Step 1: Match workload to reservation quantity and term

    You have 4 steady VMs of the same size. Buying 4 Reserved Instances matching the VM size and quantity saves costs.

  2. Step 2: Choose appropriate term length

    One-year term is common for steady workloads. Three-year is longer commitment but not required here. Different VM sizes do not match your workload.

  3. Final Answer:

    Purchase 4 one-year Reserved Instances for Standard_D2s_v3 VMs -> Option C

  4. Quick Check:

    Match VM count and size with Reserved Instances [OK]
Hint: Match Reserved Instances count and size to steady VMs [OK]
Common Mistakes:
  • Buying fewer Reserved Instances than VMs
  • Choosing wrong VM sizes for reservations
  • Ignoring steady workload benefits
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