Is a stopped VM still billed?

It depends on the state. A VM shut down from inside the guest OS shows as Stopped (allocated) and is still billed for compute. Only Stopped (deallocated), where the VM releases its host, ends compute charges. Disks and networking keep incurring charges in either state.

Should we buy a reservation or a savings plan for a client?

Rightsize first, because discounts lower rates rather than removing waste. Reservations suit VMs that run continuously with no expected change to size, family or region. Savings plans suit workloads that are changing or span several instance families, services or regions.

Can one reservation cover several of a client's subscriptions?

Yes. A reservation can be scoped to a resource group, a subscription, a management group or a shared scope covering eligible subscriptions in the same billing context. The scope can be changed later, and CSP partners can buy reservations for authorised customers in Partner Center.

Coverage

Azure VM cost optimisation for MSPs

Most wasted VM spend sits on machines that are running but no longer used, or sized larger than their workload needs. Microsoft's guidance is to remove unused resources first, then check the remaining VMs are sized correctly, because VM size is a major factor in overall Azure cost.

18

automated finders for virtual machine

Read-only, across every connected client tenant, tied to real billing data.

Commitments
Remove unused
Rightsizing
Scaling
Off-hours schedules

Where virtual machine spend goes to waste

The main cost levers Microsoft documents for virtual machine, and the ones an MSP should check across every client.

Rightsize underused VMs

Azure Advisor flags VMs to shut down or move to a cheaper SKU from CPU, memory and outbound network utilisation, with a lookback you can extend to 90 days. Its savings use retail rates and ignore existing reservations and savings plans, so check a client's commitments before resizing into a different VM series. ^[2]

Reserve steady workloads

For VMs that run consistently, a one- or three-year Azure Reservation can cut compute costs by up to 72% compared with pay-as-you-go, applied automatically to matching usage. It covers compute only, not Windows licences, storage or networking. ^[3]

Use a savings plan for changing estates

Azure savings plan for compute commits to a fixed hourly spend for one or three years, for up to 65% off pay-as-you-go on selected compute services. Because it is not tied to a VM family, size or region, it suits estates that are still changing. Usage above the commitment is billed at pay-as-you-go rates. ^[4]

Apply Azure Hybrid Benefit

Clients with Windows Server licences under active Software Assurance, or qualifying subscription licences, can run Windows VMs at reduced cost with Azure Hybrid Benefit. It can be switched on for existing VMs by changing the licence type, with no restart. ^[5]

Run interruptible work on Spot VMs

Spot VMs offer discounts of up to 90% on pay-as-you-go prices, but Azure can evict them when it needs the capacity. Keep them for work that tolerates interruption, such as dev and test, CI/CD, batch processing and rendering. ^[6]

Shut down outside working hours

The built-in auto-shutdown setting powers VMs off at a set time each day, with an optional email or webhook notice beforehand. Set the time zone deliberately for each client, because it defaults to UTC. ^[7]

How Cerberus Cloud covers virtual machine

Cerberus Cloud runs 18 automated finders for virtual machine across every connected client tenant. Each one ties a technical signal to real billing data, so findings arrive with an estimated recoverable value, ranked by impact, effort and risk, with evidence and remediation scripts for your engineers to review.

Access is read-only, so nothing changes in a client environment until your team decides it should. See how it works or the multi-tenant portfolio view.

Commitments
Remove unused
Rightsizing
Scaling
Off-hours schedules

Frequently asked questions

Is a stopped VM still billed?: It depends on the state. A VM shut down from inside the guest OS shows as Stopped (allocated) and is still billed for compute. Only Stopped (deallocated), where the VM releases its host, ends compute charges. Disks and networking keep incurring charges in either state.
Should we buy a reservation or a savings plan for a client?: Rightsize first, because discounts lower rates rather than removing waste. Reservations suit VMs that run continuously with no expected change to size, family or region. Savings plans suit workloads that are changing or span several instance families, services or regions.
Can one reservation cover several of a client's subscriptions?: Yes. A reservation can be scoped to a resource group, a subscription, a management group or a shared scope covering eligible subscriptions in the same billing context. The scope can be changed later, and CSP partners can buy reservations for authorised customers in Partner Center.

See virtual machine findings on a sample portfolio

A 15-minute walkthrough: tenant connection, prioritised findings, remediation scripts and savings history.

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Sources

Last checked 15 October 2026. Product details change; tell us if something here is out of date.

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