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Dominik Heinrich

Reservation or savings plan: break-even

From which utilisation a commitment pays off, with the return rules of Azure and AWS.

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Does the commitment pay off?

A reservation or savings plan is cheaper per hour, but you pay for it whether you use it or not. Here is the utilisation from which it pays off, and what is left over the term.

Commitment

Term

65%

break-even utilisation

+€1,000

net per month

+€36,000

net over the term

If plans change: Azure reservation

Exchanges are possible. Refunds too, but cancelled commitments can't exceed USD 50,000 in a rolling 12-month window per billing profile or enrollment.

Microsoft Learn

My rule: buy after right-sizing, and only for the base that has run steadily for months. Below break-even you pay for capacity you don't use.

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