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Azure On-Demand Capacity Reservations Explained

Apr 3, 2025

On-demand Capacity Reservation in Azure - Azure Virtual Machines

Introduction

  • On-demand capacity reservation allows reserving compute capacity in Azure for any duration, without long-term commitments.
  • Available for both Windows and Linux VMs, supporting both uniform and flexible scale sets.

Benefits

  • Immediate Usage: Use resources immediately after reservation creation.
  • Flexibility: Create/delete reservations anytime.
  • Control: Target critical workloads, noncritical workloads run without reserved capacity.

Key Properties

  • VM Size: Each reservation is specific to a VM size (e.g., Standard_D2s_v3).
  • Location: Specific to a region or availability zone.
  • Quantity: Number of instances reserved.

Reservation Process

  • Creation: Requires passing parameters like VM size, location, quantity.
  • Quota: Requires adequate subscription quota; requests can fail for insufficient quota.

Benefits and Usage

  • SLA: Provides capacity guarantee within service-level agreements.
  • Flexibility: Combine with reserved instances for discounts.
  • No Term Commitment: Capacity can be deployed/deleted anytime.

Limitations & Restrictions

  • Supported VM Series: Limited to specific series (e.g., Av2, B, D, E series).
  • Deployment Types Supported: Single VM, VM scale sets with uniform/flexible orchestration.
  • Unsupported Types: Spot VMs, Azure Dedicated Host nodes, availability sets, etc.
  • Constraints: No support for proximity placement, update domains, specific disk storage options, etc.

Pricing & Billing

  • Pricing: Same as underlying VM size, charged at pay-as-you-go rates.
  • Billing: Charges for the reservation, even if unused, eligible for discounts with reserved instances.

Differences from Reserved Instances

  • Term: No commitment vs. fixed-term for reserved instances.
  • Billing: Pay-as-you-go vs. discounted rates.
  • Capacity SLA: Provides capacity guarantee, unlike reserved instances.

Capacity Reservation Lifecycle

  • Group Management: Defined per VM size and region.
  • Adjustment: Reservation quantity adjustable post-deployment.
  • Deletion: Requires dissociation of VMs before deletion.

Usage Scenarios

  • Ideal for business continuity, disaster recovery, and scaling mission-critical applications.

FAQs

  • Pricing: Charged at VM size rates, no double charging.
  • Discounts: Reserved VM instances can apply to reservations.
  • Scenario Suitability: Best for continuity and critical application scaling.

Additional Resources

  • Create, modify, associate, and manage capacity reservations through Azure documentation and tutorials.