Azure SQL Database Reserved vCores (SQL reservations) significantly reduce your SQL compute costs compared to pay-as-you-go prices. With SQL reservations you make an upfront commitment and get a significant discount for the compute usage of your Azure SQL Database PaaS deployments (SQL Database Elastic Pool or Single Database).

To purchase a SQL reservation, you need to specify the Azure region, deployment model, performance tier and term. SQL database compute usage in your subscription(s) that match the attributes of the purchased SQL reservation will automatically get the billing discount. You do not need to assign the SQL reservation to matching SQL database instances. SQL databases that are already running or ones that are newly deployed and match the SQL reservation attributes will automatically get the benefit.

SQL reservations do not cover SQL License, networking or storage charges associated with the Azure SQL Database usage. At the end of the reservation term the billing benefit expires and the SQL databases are billed at the pay-as-you go price. Reservations do not auto-renew, to continue getting the billing benefit you need to purchase a new SQL reservation at the end of the term.