Azure Savings Plans - Step-by-Step Execution

Process Flow - Azure Savings Plans

Start: Choose VM or Compute Service

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Select Savings Plan Type

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Commit to 1 or 3 Years

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Apply Savings Plan to Eligible Usage

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Receive Discount Automatically

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Monitor Usage and Savings

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End

This flow shows how you select and apply an Azure Savings Plan to reduce compute costs by committing to usage over time.

Execution Sample

Azure

1. Choose VM family or compute service
2. Commit to 1 or 3 years
3. Azure applies discount to matching usage
4. Monitor savings on billing

This sequence shows how Azure Savings Plans work step-by-step to reduce your compute costs.

Process Table

Step	Action	Input/Condition	Result/Effect
1	Select compute resource type	VM family: D-series	Savings plan applies to D-series VMs
2	Choose commitment duration	3 years	Discount locked for 3 years
3	Start usage	Run D-series VM for 100 hours	Discount applied automatically to usage
4	Use different VM family	Run E-series VM for 50 hours	No discount applied to E-series usage
5	Monitor billing	Check monthly bill	Savings shown as reduced compute charges
6	End	Commitment period ongoing	Savings continue until commitment ends

💡 Commitment period ends or plan is canceled, discount stops applying

Status Tracker

Variable	Start	After Step 1	After Step 2	After Step 3	After Step 4	After Step 5	Final
Selected VM Family	None	D-series	D-series	D-series	D-series	D-series	D-series
Commitment Duration	None	None	3 years	3 years	3 years	3 years	3 years
Discount Applied	No	No	No	Yes (to D-series usage)	Yes (to D-series only)	Yes (to D-series only)	Yes (until commitment ends)
Billing Savings	$0	$0	$0	Discount on 100 hours usage	Discount on 100 hours usage	Discount reflected in bill	Savings continue

Key Moments - 3 Insights

Why doesn't the discount apply to E-series VM usage in step 4?

Because the savings plan was selected for D-series VMs only, discounts apply only to matching VM families as shown in execution_table row 4.

What happens if you stop using the committed VM family before the commitment ends?

The discount stops applying to usage, but you still pay for the commitment period as explained in the exit_note.

Can you change the commitment duration after purchase?

No, the commitment duration is locked at purchase time, as shown in step 2 of the execution_table.

Visual Quiz - 3 Questions

Look at the execution_table, at which step does the discount start applying to usage?

A Step 2

B Step 3

C Step 4

D Step 5

💡 Hint

Check the 'Discount Applied' column in execution_table row 3

According to variable_tracker, what is the commitment duration after step 2?

A 3 years

B None

C 1 year

D No commitment

💡 Hint

Look at 'Commitment Duration' variable after Step 2 in variable_tracker

If you run 50 hours of E-series VM usage, what happens to the discount according to execution_table?

A Discount applies to E-series usage

B Discount applies partially

C No discount applies to E-series usage

D Discount doubles

💡 Hint

See execution_table row 4 under 'Result/Effect'

Concept Snapshot

Azure Savings Plans let you commit to a VM family or compute service for 1 or 3 years.
You get automatic discounts on matching usage during the commitment.
Discounts apply only to selected VM families or services.
You pay for the commitment regardless of usage.
Monitor savings on your Azure billing dashboard.

Full Transcript

Azure Savings Plans help reduce compute costs by committing to usage over 1 or 3 years. You select a VM family or compute service, commit for a duration, and Azure automatically applies discounts to matching usage. Discounts do not apply to other VM families. You pay for the commitment even if you use less. Monitoring your billing shows your savings. This visual trace shows each step from selection to discount application and billing impact.