How the Azure reservation discount is applied to Azure Dedicated Hosts
After you buy an Azure Reserved Dedicated Host Instance, the reservation discount is automatically applied to dedicated hosts that match the attributes and quantity of the reservation. A reservation covers the compute costs of your dedicated hosts.
How reservation discount is applied
A reservation discount is "use-it-or-lose-it." So, if you don't have matching resources for any hour, then you lose a reservation quantity for that hour. You can't carry forward unused reserved hours.
When you delete a dedicated host, the reservation discount automatically applies to another matching resource in the specified scope. If no matching resources are found in the specified scope, then the reserved hours are lost.
Reservation discount for Dedicated Hosts
Azure Reserved Dedicated Hosts Instance provides you with a discount to the cost of the compute infrastructure used with your dedicated hosts. The discount applies to your dedicated hosts regardless of whether they're actively used by virtual machines or not. The reservation doesn't cover other costs such as licensing, network usage, or storage consumption by virtual machine deployed on the dedicated host.
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Related content
To learn more about Azure Reservations, see the following articles: