Explanation
Why the waste happens and who it affects.
This leads to underutilization of the committed reservation and continued on-demand charges in other parts of the organization. Enabling Shared scope allows eligible subscriptions in the same billing context (the EA enrollment or the MCA billing profile, which can span multiple Microsoft Entra tenants) to consume the reservation benefit, improving utilization and reducing overall spend. This is particularly impactful in environments with decentralized provisioning, such as across dev/test/prod subscriptions or multiple business units.
Billing model
The pricing dimensions that drive this cost.
Prepaid commitment for reserved capacity (hourly usage covered by reservation, regardless of whether resource is provisioned)
How to detect
4 checks to find it in your estate.
- Check for reservations that consistently show low utilization over a representative time window
- Evaluate whether matching on-demand resources exist in other subscriptions within the same billing context (EA enrollment or MCA billing profile)
- Assess whether the reservation scope is currently set to 'Single' rather than 'Shared'
- Determine if usage patterns across subscriptions are dynamic or uneven, which would benefit from shared scope flexibility
How to fix
3 ways to remove the waste.
- Change reservation scope from Single to Shared in the Azure Portal or via API
- Use management group scope instead when the benefit should be shared only across the subscriptions in a specific management group
- Reevaluate periodically to ensure the scope aligns with current organizational structure and usage distribution
Documentation
Vendor references for pricing and configuration.