When not to use the Azure Storage Reserved Capacity blog post (2023)

For several years, Azure users have been able to significantly reduce the price of virtual machines by purchasing Reserved Instances (RI). Microsoft is slashing the price of Azure computers - in some cases by as much as 72 percent - in exchange for paying upfront compute costs of one to three years.

Now,How Reserved Instances reduce the cost of Azure VMs, Azure Storage Reserved CapacitypromiseReduce the cost of Azure Blob Storage.

It seems very simple.

Assuming you've committed to long-term data retention in Azure and can afford itcapital outlayswhy don't you want to lower your storage costs?

However, there are some key requirements for Azure Storage reserved capacityforwardgo buy it.

Carrot: potential for significant cost savings

Let's look at the main motivation for using Azure reserved storage capacity: cost savings.

Figure 1. Azure Storage reserved capacity savings.

as you can see,Azure Storage reserved capacityHave a measurable impact on spending on Azure. Here's another look at the data arranged in tabular form:

(Video) Reserved Instance and Capacity Reservations

Table 1. Monthly comparison of storage costs per GB of reserved Azure storage capacity.

as you can see,Savings using Azure Storage reserved capacity are very attractive - 34% savings on hot and cold tiers and 17% on archive tiers.

Given the huge savings, especially on hot and cold tier data, why not just buy reserved capacity? What is a stick?

(Video) Microsoft Azure Reservations (Reserved Instances) Deep Dive

Item 1: Make sure you are actually storing the blob

While this may seem obvious, an important first step is to ensure that your data in Azure Blob Storage is actually eligible for reserved capacity savings. There's nothing more irritating than making a large prepaid purchase only to find out it doesn't work.

To apply Azure Storage Reserved Capacity to data in Azure, you must:

  • Make sure the data is thereblob storage.For Azure Storage, a lot of data may not be a blob.Azure Storage reserved capacity can only be used for blobs or data from Azure Data Lake Storage Gen2.
  • Make sure you're not using a premium storage account.Premium storage accounts, even blobs in premium storage accounts, don't support reserved capacity.

In other words, the following items do not apply to reserved capacity savings: Premium Storage Accounts, General Purpose v1 (GPv1) Storage Accounts, Azure Data Lake Storage Gen1, Page Blob, Azure Queue Storage, Azure Tables, and Azure Files.

Stick 2: Is it economically viable for your level?

As you can see in the chart above, the savings on data stored in the hot and cool tiers are around 34%, assuming a 3-year upfront payment. For many companies, this is enough to justify the initial capital expenditure.

However, the situation looks less encouraging when it comes to the archival layer. Saving 17% and 3 years upfront, there's a hard question to ask:17% savings really worth investing 3 years in advance? While this varies from company to company, I think for many the answer is no.

However, there is a really nice option available:You can choose to be billed monthly for Azure Storage reserved capacity at no additional cost! This basically makes the whole opex vs capex thing moot as you can use any model with reserved capacity.

Having said that, here's another point: is there an option to cancel early? if you doMicrosoft will charge a cancellation fee of 12%.for the remainder of the term. If you think you might want to cancel sooner, please be aware of this before proceeding.

Stick 3: Get the saved data first

At Veritas, we've noticed a pattern in some of our customer conversations. From the beginning, these customers wanted to take advantage of the cost savings associated with reserving Azure storage capacity.

(Video) Azure SQL Database Reserved Capacity

The problem is that often these customers are in the early stages of deployment and are still busy entering data from the registry into Azure Blob Storage accounts managed by Veritas.Azure Storage reserved capacity works on a use-or-lose basiswhich means if you prepay for 1 PB of reserved capacity and use less than that amount,Unused reserved capacity is not transferred, it is simply lost.

The obvious requirement here is to delay the purchase of reserved capacity until the data is processed. That said, a tiered approach also makes sense, where you buy blocks of reserved capacity when you reach a certain threshold. The size of these limits basically comes down to the smallest commit that allows for reserved capacity, which we'll discuss next.

Stick 4: Store enough data

The minimum Azure Storage reserved capacity commitment is 100 TB. This means that if you store less than 100 TB, you end up with unused capacity that is just wasted.

Nothing shocking here; a clear requirement is to have at least 100 TB of data before considering reserved capacity.

Step 5: Make sure the level of access and redundancy suits you

When purchasing Azure Storage Reserved Capacity, you must choose:

  • sign.
  • Disk size (100 TB or 1 PB drives).
  • zone.
  • access layer.
  • Redundancy level.

All five of these ingredients block their retention capacity and only apply to sites that meet these criteria. So now the bar is raised:You not only need at least 100 TB of data, but also 100 TB more with the same subscription, region, access level and redundancy.

Figure 2. Buying Reserved Capacity from Azure Storage.

What happens if you decide to change your data access level or redundancy level after purchasing reserved capacity? APPROX,The affected data will no longer be eligible for the reserved capacity, and will be charged at Pay-Ahead (PAYGO) rates, and unused reserved bandwidth is forfeited.

This means you must be absolutely sure that the level of access and redundancy is right for you before you decide to purchase Azure Reserved Storage capacity.

Clause 6: Do not include operations

Another important consideration is that the savings you get from reserved Azure storage capacity is not a percentage of the total cost, but only a portion of the storage. Reserved capacity is not available for operations and all operations will continue to be billed on a pay-as-you-go basis.

This may seem like a minor issue, but at Veritas, customers with billions of objects are surprised to realize that they are saving less than they expected by reserving capacity. This doesn't mean they still don't save with reserved capacity, it's just that the actual storage cost savings they achieve is only a fraction of the total cost of Azure Blob Storageaccount.

at the end

While Azure Storage Reserved Capacity can provide incredible cost savings for many businesses, there are some issues. Please consider these requirements carefully before deciding to purchase reserved capacity.

If you decide that Azure Blob Storage is the perfect destination for your data,Ochrona Veritas Alta™ SaaSIt helps you get the most out of your Azure investment by providing a feature-rich cloud platform built on Azure Blob Storage and fully utilizing the reserved capacity of Azure Storage (which we'll cover in the next blog post).

With Veritas Alta SaaS Protection, you can meet the challenges of backup and archiving on the same unified data platform, includingsoftware as a service, platform as a serviceand shared storage and archiving of messages, voice, medical records, and other compliant data with immutable retention and legal discovery.

(Video) Deep dive: On-demand capacity reservations with Azure Virtual Machines | Azure IaaS Day

If you think the Veritas Alta SaaS Protection platform can help your business, please contact usbeginning.

(Video) Microsoft Azure Reservations deep dive


What is the limitation of Azure file storage? ›

Storage account scale targets
AttributeGPv2 storage accounts (standard)
Number of storage accounts per region per subscription250
Maximum storage account capacity5 PiB1
Maximum number of file sharesUnlimited
Maximum concurrent request rate20,000 IOPS1
8 more rows
Mar 29, 2023

What problems is Azure Archive storage solving and how is that benefiting you? ›

Azure Archive Storage offers low-cost, durable, and highly available secure cloud storage for rarely accessed data with flexible latency requirements. Archive Storage provides secure data transfer to the cloud using HTTPS, and automatically secures that data at rest using 256-bit AES keys.

Under which circumstance should you configure your blob storage account as a hot storage tier? ›

You should configure your blob storage account as a hot storage tier when your data is accessed frequently, requires low latency, and is actively in use, such as for big data analytics, content delivery, backups, and telemetry data.

When might you use Azure file storage? ›

Azure Files can be used to replace or supplement traditional on-premises file servers or network-attached storage (NAS) devices. Popular operating systems such as Windows, macOS, and Linux can directly mount Azure file shares wherever they are in the world.

What is the disadvantage of Azure files? ›

Azure file shares require using the storage account key, which provides access to your entire storage account. You have to distribute this key to users, which can cause severe security issues. File shares are also accessible externally using the UNC path and key, and there is no way to block access from outside Azure.

What are the naming limitations for Azure storage account? ›

Storage account names must be between 3 and 24 characters in length and may contain numbers and lowercase letters only. Your storage account name must be unique within Azure.

What is not an advantage of using a cloud storage service? ›

Disadvantage #3: Requires Internet

Internet failure thus leads to costly downtime when your business heavily relies on cloud storage. Furthermore if your Internet connection is slow you will need to wait a long time in order to access your remotely stored data. No cloud provider offers an outage free service.

What are three 3 general benefits and risks of using cloud storage? ›

The three main advantages to cloud storage are:
  • It's affordable and scalable. Local storage can become very expensive, very quickly. ...
  • It's accessible anywhere. ...
  • It's easy to recover data. ...
  • It can drain bandwidth. ...
  • It's vulnerable to attacks. ...
  • It may not be compliant with your industry.
Sep 12, 2019

What is a disadvantage of cloud storage since it can take long to access your file online? ›

Privacy and security risks—the main disadvantage of cloud storage. Data leakage or loss is the main cloud concern users have, which makes sense considering your files are stored in a remote virtual location.

What are the 3 tiers for Azure storage? ›

Hot, cool, and archive access tiers for blob data - Azure Storage. Microsoft Learn.

What are the 3 tiers of blob storage? ›

Azure offers three storage tiers to store data in blob storage: Hot Access tier, Cool Access tier, and Archive tier.

Which storage tier will you use to store data that is rarely or never accessed? ›

You can use Tier 5 for cold data which is rarely or never accessed.

Which two scenarios are common use cases for Azure blob storage? ›

Blob Storage is ideal for:
  • Serving images or documents directly to a browser.
  • Storing files for distributed access.
  • Streaming video and audio.
  • Storing data for backup and restore, disaster recovery, and archiving.
  • Storing data for analysis by an on-premises or Azure-hosted service.
Mar 8, 2023

Why would a company use Azure storage? ›

From storing large structured and unstructured binary data, looking for a cloud accessible file share, to developing an asynchronous application which might require a messaging queue, and for many other use case scenarios, Microsoft Azure Storage helps businesses to store, secure and manage their data.

How do you tell if an Azure storage account is being used? ›

Sign in to the Azure portal. Select Monitor from the left-hand pane in the Azure portal, and under the Insights section, select Storage Accounts.

When not to use Azure? ›

Azure Functions are NOT designed to carry out multiple tasks. The service was designed to perform one thing or as few things in the shortest time possible. Azure Functions is NOT recommended for infrequent, time-sensitive tasks.

What are two disadvantages of using cloud storage? ›

Disadvantages of Cloud Storage
  • You Need an Internet Connection. To use the cloud, you need to be connected to the internet. ...
  • Extra Storage Space Comes at a Cost. This isn't really surprising, as very few online services are fully free. ...
  • Security and Privacy Concerns With Some Providers.
May 31, 2022

What is the one major disadvantage of cloud storage? ›

Disadvantages of Cloud Storage
  • Disadvantage 1: Lack of Control. ...
  • Disadvantage 2: Security and Privacy concerns. ...
  • Disadvantage 3: Difficult to Migrate. ...
  • Disadvantage 4: Internet-dependent. ...
  • Disadvantage 5: Fixed Contracts.
Mar 13, 2022

What is the limitation of Azure? ›

A single user can belong to a maximum of 500 Azure AD tenants as a member or a guest. A single user can create a maximum of 200 directories. You can add no more than 5,000 managed domain names.

What are the limitations of storage account? ›

Scale targets for standard storage accounts
Default maximum storage account capacity5 PiB 1
Maximum number of blob containers, blobs, file shares, tables, queues, entities, or messages per storage account.No limit
Default maximum request rate per storage account20,000 requests per second1
13 more rows
Jul 14, 2022

What is the difference between container and blob in Azure? ›

A container organizes a set of blobs, similar to a directory in a file system. A storage account can include an unlimited number of containers, and a container can store an unlimited number of blobs.

What are 3 disadvantages of the cloud? ›

Disadvantages of cloud computing
  • data loss or theft.
  • data leakage.
  • account or service hijacking.
  • insecure interfaces and APIs.
  • denial of service attacks.
  • technology vulnerabilities, especially in shared environments.

What are the potential disadvantages of using the storage as a service? ›

Common disadvantages of STaaS include the following: Security. Users may end up transferring business-sensitive or mission-critical data to the cloud, which makes it important to choose a service provider that's reliable. Potential storage costs.

Why should you not use cloud storage for critical data? ›

Risks of cloud storage

But the bigger risk with cloud storage is privacy. Even if data isn't stolen or published, it can still be viewed. Governments can legally request information stored in the cloud, and it's up to the cloud services provider to deny access.

What are the two biggest concerns about cloud storage? ›

Main Cloud Security Issues and Threats in 2021
  • Misconfiguration. Misconfigurations of cloud security settings are a leading cause of cloud data breaches. ...
  • Unauthorized Access. ...
  • Insecure Interfaces/APIs. ...
  • Hijacking of Accounts. ...
  • Lack of Visibility. ...
  • External Sharing of Data. ...
  • Malicious Insiders. ...
  • Cyberattacks.

What is a disadvantage of using online storage for backups rather than local storage? ›

Backups May Be Slower

Internet bandwidth and cloud storage max ingest speeds may be more limited than the local network/disk. There's also more communication latency involved.

What are the files you should never store in the cloud? ›

Sensitive information – Any personally identifiable information, such as date of births, employees numbers, personnel files and credit card data should not be kept in the cloud, where they can be easy pickings for hackers.

Do I really need cloud storage? ›

Cloud storage is one of the best ways to keep your digital files safe and accessible. With the best cloud storage (opens in new tab), you can easily share your latest design with collaborators, back up your video clips for long-term storage, or make your photos accessible across all your devices.

What are the 5 types of storage in Azure? ›

Azure Storage offers five core services: Blobs, Files, Queues, Tables, and Disks.

What are the differences between Tier 1 and Tier 3 storage? ›

Tier 3 is used for hot data such as ERP and CRM data which users must access often without too much delay. Compared to Tier 1 and Tier 2, this usually means medium to high performance, high capacity hard drives at a low cost per Gigabyte stored and substantially more data.

What are the 3 system properties of Azure tables? ›

System Properties
  • PartitionKey property.
  • RowKey property.
  • Timestamp property.
Feb 3, 2023

How many containers can blob storage have? ›

Blob Storage
ResourceType of BlobLimit
Maximum size of single blob container5 PB
Maximum number of blocksBlock / Append50,000
Maximum block sizeBlock100 MB
Maximum total block sizeAppend4 MiB
7 more rows
Dec 21, 2020

What is the difference between blob storage and data lake? ›

In summary, Azure Data Lake Storage Gen2 is ideal for big data analytics workloads, while Blob storage is ideal for storing and accessing unstructured data. Both solutions offer strong security features and are cost-effective compared to traditional data storage solutions.

What is the difference between blob and object storage? ›

Blob storage is a type of object storage. Object storage keeps files or blobs in a flat "data lake" or "pool" with no hierarchy; a data lake/pool is a large collection of unstructured data.

What type of data you should not store? ›

Finally, you shouldn't store credit card information in your database unless you absolutely need to. This includes credit card owner names, numbers, CVV numbers, and expiration dates. There is far too much risk involved.

What is the safest data storage method? ›

A solid-state drive (SSD) for an external backup will be an excellent choice if you plan on keeping the data for an extended length of time. Because there are no moving components in an SSD, dropping the drive does not pose a significant danger of data corruption like dropping a regular hard disk drive does.

What is the safest form of data storage? ›

Types of Safe Data Storage Devices
  • SSD and flash storage - Flash storage uses flash memory chips for writing and storing data. ...
  • Hybrid storage - This option mixes the speed of flash with hard drive storage capacity. ...
  • Cloud storage - Data storage on the cloud is an alternative to storing everything on your hard drive.

Which Azure storage account is recommended for most scenarios? ›

General-purpose v2 storage accounts support the latest Azure Storage features and incorporate all of the functionality of general-purpose v1 and Blob storage accounts. General-purpose v2 accounts are recommended for most storage scenarios.

In which scenario would you choose blob storage over files storage? ›

Blob storage is optimized for storing massive amounts of unstructured data, such as text or binary data.

What is the difference between block blob and page blob? ›

They are named block blobs because files larger than 100 MB must be uploaded as small blocks, which are then consolidated (or committed) into the final blob. Page blobs are used to hold random-access files up to 8 TB in size.

Why might you prefer Azure data storage over an on premises solution? ›

Azure is recommended not only because it is popular, but because it makes sense for your business. It has better security features and offers greater speed, reliability and scalability compared to on-premise solutions. No only that, but it's cheaper as well. You don't even have to worry about upkeep.

Why do Fortune 500 companies use Azure? ›

Enterprises can easily design, deploy, and administer simple to complex applications using Azure cloud services that are intimately integrated. Azure is also compatible with a comprehensive variety of programming languages, platforms, operating systems, networks, and devices.

Why choose Azure blob storage? ›

Azure Blob Storage helps you create data lakes for your analytics needs, and provides storage to build powerful cloud-native and mobile apps. Optimize costs with tiered storage for your long-term data, and flexibly scale up for high-performance computing and machine learning workloads.

What is the point of Azure storage account? ›

An Azure storage account contains all of your Azure Storage data objects, including blobs, file shares, queues, tables, and disks. The storage account provides a unique namespace for your Azure Storage data that's accessible from anywhere in the world over HTTP or HTTPS.

What is the difference between storage account and disk in Azure? ›

A Storage Account is a "serverless storage" to store data. You are able to access the data without running a VM from internet and/or VMs in Azure. A data disk is always attached to a VM. You can't access the data on the data disk directly from internet.

What are the limitations of Azure workbook? ›

In general, Azure Workbooks limits the results of queries to no more than 10,000 results. Any results after that point are truncated. Each data source might have its own specific limits based on the limits of the service it queries.

What are the resource limits for Azure files? ›

Standard Azure file shares offer up to 300 MiB/s per share/volume and up to 60 MiB/s per file. Premium shares offer up to 10 GiB/s per share/volume and 300 MiB/s per file (up to 1 GiB/s with SMB multichannel).

What is the disadvantage of Azure function? ›

Vendor-lock is the biggest drawback of this function. It is very difficult to run code deployed in Azure function outside the azure environment. The language used in function app such as java, NodeJS, etc are not specialized but the code to establish a connection between resources is specific to azure.

What are the cons of Azure container instances? ›

Some of this service disadvantages are:
  • Complexity – forcing to learn about many details related with service operation,
  • Dedicated mostly for web applications, other types of apps support is limited,
  • Usage of services delivered by one cloud provider (in this case Azure) not always translates into universal skills.

What are the project limitations in Azure boards? ›

Azure DevOps Services limits each organization to 1000 projects per organization, an increase over the previous limit of 300 projects. Above 300 projects certain experiences, such as connecting to a project from Visual Studio, may start to degrade.

Can I store huge files in Azure? ›

Use Azure Blob Storage to store massive amounts of unstructured object data, such as text or binary data. Azure Blob Storage is highly scalable and available.

Does Azure free account has a limit for the amount of data that can be uploaded to Azure? ›

NOTE: Each correct selection is worth one point. Azure free account has a 5 GB blob storage limit and a 5 GB file storage limit.


1. How to use on-demand Capacity Reservations for Azure Virtual Machines
(Microsoft Azure)
2. Azure - Capacity Reservation Explained !!!
(Girish Sharma)
3. Azure Cosmos DB Reserve Capacity Explained
(Azure Cosmos DB)
4. Azure Reserved VM Instances (RIs) | Azure Friday
(Microsoft Developer)
5. Azure Master Class v2 - Module 5 - Storage
(John Savill's Technical Training)
6. Azure Storage Update
(Azure Power Lunch)


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