Dedicated Host
Azure Dedicated Host — commitment brief
Data sourced: March 2026. Verify current figures at the Azure Pricing Calculator.
Coverage summary
Azure Dedicated Host supports two commitment instruments: Reserved Instances (1-yr and 3-yr) and the Azure Compute Savings Plan (1-yr and 3-yr). Reservations are purchased per host — not per VM — and the discount applies automatically to any running host matching the reservation's scope and SKU family. The Compute Savings Plan covers Dedicated Host infrastructure costs flexibly across host families and regions. Both can be held simultaneously; reservation discounts apply first, then savings plan to remaining eligible spend.
What is covered: Host-level compute infrastructure costs. A reservation for one SKU type within a VM family (e.g., Dsv3-Type3) also applies to other types within the same family (e.g., Dsv3-Type4).
What is not covered: Windows Server and SQL Server software licensing (offset with Azure Hybrid Benefit), storage consumed by VMs on the host, managed disk costs, network usage. Reservations are not available in Germany or China regions.
Azure Hybrid Benefit
AHB applies. Existing Windows Server and SQL Server licenses with Software Assurance can be applied to VMs running on the dedicated host, reducing software licensing costs. AHB covers the software layer; the reservation covers the compute layer. The two stack independently.
SKU / tier coverage
Dsv3 / Dsv4 / Dsv5 (General Purpose)
✅ Yes
✅ Yes
varies by SKU
varies by SKU
Cross-type flexibility within family (e.g., Type3 covers Type4)
Dadsv5 / Dasv5 / Dasv4 (General Purpose)
✅ Yes
✅ Yes
varies by SKU
varies by SKU
Esv3 / Esv4 / Esv5 (Memory Optimized)
✅ Yes
✅ Yes
varies by SKU
varies by SKU
Cross-type flexibility within family
Eadsv5 / Easv5 / Ebdsv5 / Ebsv5
✅ Yes
✅ Yes
varies by SKU
varies by SKU
M-series / Mv2 / Mdsv2 / Msv2 (Memory Extreme)
✅ Yes
✅ Yes
varies by SKU
varies by SKU
Fsv2 / FXmds (Compute Optimized)
✅ Yes
✅ Yes
varies by SKU
varies by SKU
DCsv2 / DCsv3 / DCadsv5 / DCasv5 (Confidential)
✅ Yes
✅ Yes
varies by SKU
varies by SKU
Compute Savings Plan (all eligible hosts)
❌ N/A
✅ Yes
up to ~35%
up to ~65%
Flexible across host families and regions
Reservation vs. Compute Savings Plan
Reservation: Scoped to a specific host SKU family and region. Delivers the highest discount for stable, single-family deployments. Discount applies to the host regardless of whether VMs are actively running on it. Cannot cross VM families (e.g., a Dsv3 reservation does not cover Esv3). 1-yr and 3-yr terms.
Compute Savings Plan: Hourly spend commitment flexible across Dedicated Host families, VM families, App Service (Premium v3/Isolated v2), Container Instances, and Azure Functions Premium. Up to ~65% at 3-yr. Best when host families or regions shift over time.
Regional availability
Azure Dedicated Host reservations are available in all commercial Azure regions where Dedicated Host is deployed. However, Microsoft explicitly excludes two cloud environments from reservation purchasing.
Notable exclusions: "Reservations aren't available for purchase in Germany or China regions." (per Microsoft Learn). Not all Dedicated Host SKU families are available in every region — verify host SKU availability in your target region before purchasing.
⚠️ Availability varies by SKU and region. Always verify in the Azure portal or via the Azure Retail Pricing API before purchasing.
Archera
Azure Dedicated Host is within Archera's commitment management scope. Archera can automate host-level reservation purchase, monitor per-host utilization, and wrap commitments in a GRI/GSP — eliminating downside risk on reserved hosts that go underutilized while preserving the full reservation discount.
Sources
⚠️ Discount percentages vary by host SKU, region, and term. Always verify with the Azure Pricing Calculator.
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