Azure Savings Plans are a great way of saving money in Azure – you commit to a fixed hourly Azure spend for 1 or 3 years, and then you’re eligible for special rates for compute resources. Working out the right amount to commit can be hard work and so Azure makes recommendations for you.
If you want to understand how it comes up with those recommendations, then this article is a good read: https://bit.ly/45phn2f, and if you want to get to grips with Azure Savings Plans all-up, then our Azure book is a great read: https://bit.ly/BOK22Azure.