A company has several production virtual machines running 24/7 that they expect to use continuously for the next three years. Which Azure pricing option provides the highest cost savings for this predictable compute workload?

Direct Answer (Verified)Reviewed by Sunny (Senior Cloud Engineer)

Correct Answer: Azure Reservations

Azure Reservations help you save money by committing to one-year or three-year plans for multiple products (like Virtual Machines). This commitment can provide up to 72% cost savin...

๐Ÿ“‹Part of Microsoft Certified: Azure Fundamentals (AZ-900) ยท Azure Certification Practice
Real Exam ScenarioAzure Pricing & Support

A company has several production virtual machines running 24/7 that they expect to use continuously for the next three years. Which Azure pricing option provides the highest cost savings for this predictable compute workload?

โœ“ Correct Answer & ExplanationAzure Pricing & Support

Correct Answer

Azure Reservations

Why This Answer Is Correct

Azure Reservations help you save money by committing to one-year or three-year plans for multiple products (like Virtual Machines). This commitment can provide up to 72% cost savings compared to pay-as-you-go prices. Spot VMs are cheaper but can be evicted at any time, making them unsuitable for production workloads.

๐Ÿ“š What This Question Tests

This question evaluates your knowledge of Azure Pricing & Support โ€” a core concept tested in Microsoft Certified: Azure Fundamentals (AZ-900). Understanding Azure Pricing & Support is essential for designing scalable, secure, and cost-effective cloud architectures. Mastery of this topic will help you answer scenario-based questions confidently on exam day.