Azure Savings Plans - Commands & Configuration

Introduction

Azure Savings Plans help you save money on your cloud costs by committing to use a certain amount of compute power over time. This way, you pay less compared to paying for compute resources as you go.

When you know your app will run steadily for a long time and want to reduce costs.

When you want to plan your cloud budget with predictable monthly expenses.

When you want to save money on virtual machines or other compute services without changing your usage.

When you want to avoid surprises from fluctuating cloud bills.

When you want to commit to a one- or three-year plan to get discounts.

Commands

This command creates a new Azure Savings Plan named 'mySavingsPlan' in the East US region. It commits to 100 compute units for one year (P1Y). This commitment helps reduce your compute costs.

Terminal

az savingsplan create --name mySavingsPlan --location eastus --plan-type Compute --commitment 100 --term P1Y

Expected Output

{

  "id": "/subscriptions/xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx/resourceGroups/myResourceGroup/providers/Microsoft.SavingsPlans/savingsPlans/mySavingsPlan",

  "name": "mySavingsPlan",

  "planType": "Compute",

  "commitment": 100,

  "term": "P1Y",

  "location": "eastus",

  "provisioningState": "Succeeded"

}

→

--name - Sets the name of the savings plan.

→

--plan-type - Specifies the type of savings plan, here for compute resources.

→

--commitment - Defines the amount of compute units you commit to.

→

--term - Specifies the duration of the savings plan commitment, e.g., P1Y for one year.

→

--location - Specifies the Azure region for the savings plan.

This command shows the details of the savings plan named 'mySavingsPlan' in East US. It helps you verify the plan was created and see its current status.

Terminal

az savingsplan show --name mySavingsPlan --location eastus

Expected Output

{

  "id": "/subscriptions/xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx/resourceGroups/myResourceGroup/providers/Microsoft.SavingsPlans/savingsPlans/mySavingsPlan",

  "name": "mySavingsPlan",

  "planType": "Compute",

  "commitment": 100,

  "term": "P1Y",

  "location": "eastus",

  "provisioningState": "Succeeded"

}

→

--name - Specifies the savings plan to show.

→

--location - Specifies the Azure region of the savings plan.

This command lists all savings plans in the East US region. It helps you see all your active savings plans and their details.

Terminal

az savingsplan list --location eastus

Expected Output

[{

  "id": "/subscriptions/xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx/resourceGroups/myResourceGroup/providers/Microsoft.SavingsPlans/savingsPlans/mySavingsPlan",

  "name": "mySavingsPlan",

  "planType": "Compute",

  "commitment": 100,

  "term": "P1Y",

  "location": "eastus",

  "provisioningState": "Succeeded"

}]

→

--location - Filters savings plans by region.

Key Concept

If you remember nothing else from this pattern, remember: committing to a fixed amount of compute usage with Azure Savings Plans lowers your cloud costs compared to pay-as-you-go pricing.

Common Mistakes

Trying to create a savings plan without specifying the location.

Azure requires a location to know where to apply the savings plan, so the command fails.

Always include the --location flag with a valid Azure region like eastus.

Setting a commitment value that is too low or too high compared to actual usage.

If commitment is too low, you miss savings; if too high, you pay for unused capacity.

Estimate your average compute usage and set the commitment accordingly.

Not verifying the savings plan after creation.

You might think the plan is active when it failed or is pending.

Use az savingsplan show to confirm the plan's provisioning state is 'Succeeded'.

Summary

Create an Azure Savings Plan with az savingsplan create to commit to compute usage and save money.

Check your savings plan details with az savingsplan show to confirm it is active.

List all savings plans in a region with az savingsplan list to manage your commitments.

Practice

1. What is the main benefit of using Azure Savings Plans?

easy

A. Lowering costs by committing to use services over time

B. Increasing the speed of virtual machines

C. Automatically scaling app services

D. Improving security of cloud resources

Solution

1. Step 1: Understand the purpose of Azure Savings Plans

   Azure Savings Plans are designed to reduce costs by committing to use certain Azure services over a period.

2. Step 2: Compare options to the main benefit

   Options A, B, and D describe performance or security improvements, which are not the primary goal of Savings Plans.

3. Final Answer:

   Lowering costs by committing to use services over time -> Option A

4. Quick Check:

   Cost savings = Lowering costs by commitment [OK]

Hint: Savings Plans reduce cost by commitment, not performance [OK]

Common Mistakes:

• Confusing cost savings with performance improvements
• Thinking Savings Plans improve security
• Assuming Savings Plans scale resources automatically

2. Which of the following is the correct Azure CLI command to create a savings plan?

easy

A. az savingsplan deploy --name MyPlan --scope subscription

B. az savingsplan new --name MyPlan --scope subscription

C. az savings create --plan MyPlan --scope subscription

D. az savings-plan create --name MyPlan --scope subscription

Solution

1. Step 1: Identify the correct Azure CLI syntax for savings plans

   The official command to create a savings plan uses az savings-plan create with parameters like --name and --scope.

2. Step 2: Check other options for invalid commands

   Options B, C, and D use incorrect verbs or command structures not supported by Azure CLI.

3. Final Answer:

   az savings-plan create --name MyPlan --scope subscription -> Option D

4. Quick Check:

   Correct CLI command = az savings-plan create [OK]

Hint: Use 'az savings-plan create' to make a new plan [OK]

Common Mistakes:

• Using 'new' instead of 'create' in CLI
• Mixing 'savings' and 'savingsplan' commands
• Incorrect parameter names

3. Given a steady workload of virtual machines running 24/7, what is the expected behavior when applying an Azure Savings Plan?

medium

A. Costs for the virtual machines will decrease due to the commitment

B. Virtual machines will automatically increase CPU cores

C. The workload will be moved to a cheaper region

D. Virtual machines will restart daily to apply savings

Solution

1. Step 1: Understand how Savings Plans affect steady workloads

   Azure Savings Plans reduce costs by committing to usage, so steady workloads like 24/7 VMs benefit from lower prices.

2. Step 2: Eliminate options unrelated to cost savings

   Options A, B, and C describe changes to performance, location, or VM behavior, which Savings Plans do not cause.

3. Final Answer:

   Costs for the virtual machines will decrease due to the commitment -> Option A

4. Quick Check:

   Steady workload + Savings Plan = Lower cost [OK]

Hint: Savings Plans cut cost, not change VM specs or location [OK]

Common Mistakes:

• Thinking Savings Plans change VM performance
• Assuming workload moves to cheaper regions automatically
• Believing VMs restart to apply savings

4. You tried to create an Azure Savings Plan but received an error: "Invalid scope parameter." What is the most likely cause?

medium

A. The savings plan name is too long

B. The scope value is not a valid subscription or resource group ID

C. You did not specify the VM size

D. The Azure CLI version is outdated

Solution

1. Step 1: Analyze the error message about scope

   The error "Invalid scope parameter" indicates the scope argument is incorrect or malformed.

2. Step 2: Identify what scope should be

   Scope must be a valid subscription ID or resource group ID; an invalid or mistyped value causes this error.

3. Final Answer:

   The scope value is not a valid subscription or resource group ID -> Option B

4. Quick Check:

   Invalid scope = wrong subscription/resource ID [OK]

Hint: Check scope is valid subscription or resource group ID [OK]

Common Mistakes:

• Ignoring scope format and using wrong IDs
• Blaming name length for scope errors
• Not updating Azure CLI before retrying

5. A company has fluctuating app service usage but wants to save costs with Azure Savings Plans. Which strategy best fits their needs?

hard

A. Avoid savings plans and pay pay-as-you-go only

B. Commit to the highest possible usage to cover all peaks

C. Commit to a savings plan based on their average steady usage to maximize savings

D. Create multiple savings plans for each app service separately

Solution

1. Step 1: Understand Savings Plans suit steady predictable usage

   Savings Plans work best when usage is steady; fluctuating usage means committing to average steady usage is optimal.

2. Step 2: Evaluate options for cost efficiency

   Commit to the highest possible usage to cover all peaks wastes money by committing to peak usage; C misses savings; D complicates management without extra benefit.

3. Final Answer:

   Commit to a savings plan based on their average steady usage to maximize savings -> Option C

4. Quick Check:

   Average steady usage commitment = best savings [OK]

Hint: Commit to average steady usage, not peaks, for best savings [OK]

Common Mistakes:

• Committing to peak usage wastes money
• Avoiding savings plans due to usage fluctuation
• Creating many small savings plans unnecessarily