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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.

Image by Milad Fakurian

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.

Get Started with CloudHiro Effortlessly
Setting up CloudHiro is a seamless process. Follow these steps to ensure your account is ready to optimize your cloud costs:

For New Customers

For Existing Customers

  1. Register for CloudHiro: If you're new to CloudHiro, start by creating an account.

  2. Follow the Setup Guide: Once registered, proceed with the steps outlined for existing customers below.

  1. Create a New Subscription: Set up a dedicated subscription for Reservation Purchases (if you don't have one already).

  2. Assign Permissions: Grant the RI Purchaser role to Costi within the subscription.

  3. Update Your Settings: Add the subscription ID to your CloudHiro account settings.

What's Next?

Once your setup is complete, we'll coordinate a personal onboarding session to help you start smoothly. During this session, we'll guide you through the platform, answer any questions, and ensure you're fully equipped to maximize CloudHiro's benefits.

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Let's get started today!

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