Automated Azure Reservation Management
CloudHiro's Automated Azure Reservation (RI) Management.
A bit about reservations in Azure:
Azure Reservations are a cost-effective way to save money on your Azure resources by committing to a one- or three-year term. By making a reservation, you can save up to 72% on virtual machines, 45% on SQL databases, and up to 24% on other Azure resources. While reservations can provide significant cost savings, manually managing them can be time-consuming.
Designed to Optimize ESR and Reduce Risk
The Effective Savings Rate (ESR) is a measure of the savings achieved by using financial cloud tools such as Reservations (RIs) and Saving Plans (SPs). It is calculated as the difference in percentage between what you would have paid without using RIs and SPs and your actual final monthly payment. The calculation takes into account all resources used during the period, not just those that are covered by RIs and SPs. It also considers the Over Commitment for the period, which is the portion of the RI or SP that was not applied to any resources and therefore was paid for without any utilization. This is where the risk factor comes into the picture. The idea is to commit, but not to over-commit. Otherwise, we end up paying for nothing and seeing a rapidly decreasing ESR.
Here's a sneak peek at the results
How does it work
We start by working closely with our customers to determine the most effective strategy for their specific usage patterns and future goals. We purchase three-years, no-upfront (monthly) payment reservations as they offer significant discounts without affecting cash flow. Additionally, CloudHiro continually monitors our customers' usage and reservation utilization to ensure that RIs are being used efficiently and effectively. Using this approach, we prevent overcommitment and maintain the flexibility to adapt to changes in the customer's needs.
Installation is as simple as adding an RI pruchaser pemission to the Costi service principal.
- First, please register to CloudHiro.
- Then, please follow the guide for existing customers.
If you do not already have one, please create a new subscription for Reservation Purchases. Give Costi the RI Purchaser role on that subscription. Add that subscription ID to your settings.
That's it. You're all done. Now we need to schedule a kick-off meeting.