Back to blog

A Guide to Azure Savings Plans and Strategic Cost Optimisation

Azure Savings Plans emerge as a key tool in your cloud management tool box, providing flexibility and cost savings for organisations aiming to streamline their cloud expenses.

In this guide, we will delve into the intricacies of Azure Savings Plans and how partnering with a knowledgeable entity like IG CloudOps, a UK-based Azure consultancy, can help businesses effectively manage their resources and curb unnecessary expenditures.

Azure Cost Audit

Understanding Azure Savings Plans

Azure Savings Plans are a commitment-based pricing model offered by Microsoft Azure, designed to provide significant cost savings compared to pay-as-you-go pricing. With Savings Plans, users commit to a consistent amount of usage (measured in $/hr) for a 1 or 3-year period. In return, they benefit from discounted rates compared to standard pay-as-you-go pricing.

There are two main types of Azure Savings Plans: Compute Savings Plans and EC2 Instance Savings Plans. Compute Savings Plans offer flexibility across a wide range of instance families, sizes, and operating systems, while EC2 Instance Savings Plans provide more specific instance type coverage with potentially higher savings. Choosing the right type depends on your organisation's usage patterns and requirements.

Navigating the Options: Types of Savings Plans

Within each type of Savings Plan, there are various options, and understanding them is crucial to making informed decisions. For instance, there are No Upfront, Partial Upfront, and All Upfront payment options. Each has its own advantages, depending on your organisation's financial strategy and budgeting preferences.

Strategic Cost Optimisation with IG CloudOps

Navigating the complexities of Azure Savings Plans requires expertise, and this is where our dedicated Azure team can help. As a UK-based Azure partner, IG CloudOps brings a wealth of knowledge and experience to the table. Our cloud management platform CloudOps empowers businesses with the tools needed to efficiently handle and optimise their Azure resources.

Many organisations unknowingly overspend on their monthly Azure bills due to inefficient resource allocation and management. IG CloudOps, with its team of experts, conducts thorough assessments of your existing Azure infrastructure, identifying areas where resources are overclocked or can be optimised.

By leveraging our in-depth understanding of Azure services and best practices, IG CloudOps helps businesses implement strategies to reduce costs without compromising performance.

This could involve rightsising virtual machines, implementing auto-scaling policies, or adopting reserved capacity where appropriate. The ultimate goal is to ensure that every penny spent on Azure translates into tangible value for the organisation.

A word of caution if you are on a cloud solution provider agreement (CSP)

It's important to note that if you procure your Azure infrastructure through a partner under a CSP (Cloud Solution Provider) agreement, the option to directly utilise Azure Savings Plans might be limited.

CSP agreements often come with their own pricing structures and discounts negotiated by the partner, potentially rendering Savings Plans incompatible. In such cases, it's advisable to consult with your CSP partner to explore alternative cost optimisation strategies tailored to the specifics of your agreement, ensuring you make the most informed decisions for your cloud expenditure. Read more about how a CSP can impact your business continuity here


Embracing Azure Savings Plans is a strategic move for businesses looking to optimise costs without sacrificing performance. Partnering with a knowledgeable and experienced consultancy like IG CloudOps provides an added advantage, ensuring that your organisation not only understands the intricacies of Azure Savings Plans but also implements them in a way that maximises cost savings.

As organisations continue their journey into the cloud, having a partner like IG CloudOps becomes invaluable. Our commitment to helping businesses save money on their monthly Azure bills by stopping wastage exemplifies the proactive approach needed in today's competitive and cost-conscious environment.

To find out how we can help you implement an Azure saving plan, speak to a member of our team

Or to find out more about our cloud management platform, book a test drive

you might also be interested in:

Optimising Cost and Performance with Azure Monitoring Solutions

Why is an Azure Consultant a Rare Thing?

Mastering Azure Subscription Management: Top 3 Pro Tips and Best Practices

How to Evaluate Azure Cost Management and Ensure You’re Getting Value for Money

Quick steps to reduce your monthly Azure bill