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A company operates critical production virtual machines in Azure that run continuous, steady-state workloads 24 hours a day, 7 days a week.
The organization has committed to maintaining these workloads in Azure for at least the next three years and wants to significantly reduce compute expenses compared to standard pay-as-you-go pricing.
Which cost optimization strategy should the company implement?
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Azure Reserved Virtual Machine Instances (Azure Reservations) provide substantial discounts compared to pay-as-you-go pricing in exchange for committing to consistent compute resource usage over a one-year or three-year period. Reservations do not alter or disrupt running virtual machines; instead, the billing discount is applied automatically to matching virtual machine instances within the designated scope.
For steady-state infrastructure running non-stop over multiple years, Azure Reservations represent the most cost-effective procurement strategy. Other approaches like on-demand scaling or spot instances are unsuitable for continuous, business-critical workloads that cannot tolerate interruption.
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