Last updated: May 2026
Azure App ServiceBeginnerAZ-104⏱ 13 min read

App Service Plans

An App Service Plan defines the region, VM size, OS, and number of instances that your App Service apps run on. It's the compute layer — everything you deploy to App Service must live within a plan, and the plan is what you actually pay for. Choosing the right plan tier is one of the most important decisions — it determines available features, scale limits, and cost.

What you'll learn All plan tiers — Free, Shared, Basic, Standard, Premium, Isolated · What features each tier unlocks · Sharing one plan across multiple apps · Scale-up vs scale-out · App Service Environments (ASE) · Choosing between plan tiers · Creating a plan via CLI

Plan Tiers Overview

TiervCPURAMCustom DomainSSLAuto-ScaleSlotsSLA
Free (F1)Shared1 GB0None
Shared (D1)Shared1 GB0None
Basic (B1-B3)1–41.75–7 GB❌ (manual only)099.95%
Standard (S1-S3)1–41.75–7 GB599.95%
Premium v3 (P0v3-P3v3)2–84–32 GB2099.95%
Isolated v2 (I1v2-I6v2)2–328–128 GB2099.95%

Free and Shared Tiers

The Free (F1) and Shared (D1) tiers run on shared infrastructure — your app shares CPU with other customers' apps. There is no SLA, limited compute, and the app may be suspended when compute quotas are exceeded.

  • Free (F1) — 60 CPU minutes/day limit, no custom domain, no SSL. Dev/test only.
  • Shared (D1) — 240 CPU minutes/day, supports custom domain. Still no SLA.
⚠️
Never use Free/Shared for production Free and Shared tiers have no SLA, shared CPU that can spike unpredictably, and daily compute quotas. Any production workload should be on Basic tier minimum.

Basic Tier

The entry-level dedicated tier — your app runs on its own VMs not shared with other customers. Basic provides:

  • Dedicated compute (B1: 1 vCPU, 1.75 GB RAM; B2: 2 vCPU, 3.5 GB RAM; B3: 4 vCPU, 7 GB RAM)
  • Custom domains and SSL certificates
  • Manual scaling up to 3 instances
  • 99.95% SLA
  • No deployment slots, no auto-scale
💡
Basic is fine for low-traffic production apps If your app doesn't need auto-scaling or deployment slots, Basic is the most cost-effective production tier. A B1 instance costs ~₹1,200–1,500/month.

Standard Tier

The most commonly used production tier. Standard adds auto-scaling and deployment slots over Basic:

  • Auto-scale — scale out to 10 instances based on metrics
  • 5 deployment slots (staging environments)
  • Daily backups
  • Traffic Manager integration
  • Same VM sizes as Basic (S1/S2/S3)

Premium Tiers

Premium v3 provides significantly more powerful VMs and additional features for high-traffic production apps:

  • Up to 20 deployment slots
  • Scale out to 30 instances
  • Larger VMs (P1v3: 2 vCPU/8 GB RAM up to P3v3: 8 vCPU/32 GB RAM)
  • VNet Integration (built-in, not add-on)
  • Zone redundancy — deploy across Availability Zones
  • Private endpoint support
ℹ️
Premium v3 is Recommended Over v2 Premium v3 (Pv3) is the current generation with better performance per price than Premium v2 (Pv2). If you're on Pv2, consider migrating to Pv3.

Isolated Tier (ASE)

The Isolated tier runs in an App Service Environment (ASE) — a fully dedicated, single-tenant environment deployed into your own VNet. Every aspect is dedicated exclusively to your apps.

  • Complete network isolation — deployed entirely within your VNet
  • No public internet exposure (unless you configure it)
  • Scale to 100+ instances
  • Largest VMs (I6v2: 32 vCPU, 128 GB RAM)
  • Required for regulatory compliance (PCI-DSS, HIPAA) needing network isolation
  • Much more expensive — the ASE itself has a fixed hourly charge plus per-instance charges

Sharing Plans Across Apps

Multiple apps can run on the same App Service Plan — sharing compute resources. This reduces cost but means all apps compete for the same CPU and memory.

StrategyWhen to Use
Share one plan for multiple appsLow-traffic apps, dev/test, apps with complementary usage patterns
Separate plan per appHigh-traffic apps, apps requiring different scale settings, production isolation

Scale-Up vs Scale-Out

Scale Up (Vertical)Scale Out (Horizontal)
What changesMove to a bigger VM size (B1 → B2 → B3)Add more instances of the same VM size
HowChange the plan tier/sizeManual or auto-scale rules
Downtime?Brief restartNo downtime
LimitMax VM size in tierMax instances for tier (10–100+)

Choosing the Right Tier

ScenarioTier
Learning, development, prototypingFree (F1)
Low-traffic production app, no auto-scale neededBasic (B1/B2)
Standard production app needing auto-scale and slotsStandard (S1/S2)
High-traffic app, needs more VMs, more slotsPremium v3 (P1v3/P2v3)
Compliance, network isolation, single-tenantIsolated v2 (ASE)

Creating a Plan via CLI

Azure CLICreate App Service Plan and Web App
# Create App Service Plan (Standard S1, Linux)
az appservice plan create \
  --name myAppServicePlan \
  --resource-group myRG \
  --location centralindia \
  --sku S1 \
  --is-linux

# Create Web App on this plan
az webapp create \
  --name mywebapp-2026 \
  --resource-group myRG \
  --plan myAppServicePlan \
  --runtime "NODE:20-lts"

# Scale up to S2
az appservice plan update \
  --name myAppServicePlan \
  --resource-group myRG \
  --sku S2

# Manually scale out to 3 instances
az appservice plan update \
  --name myAppServicePlan \
  --resource-group myRG \
  --number-of-workers 3
💡
AZ-104 Exam Tip Know which features require which tier — auto-scale and deployment slots require Standard or above. Know Free/Shared use shared infrastructure with no SLA. Know Isolated runs in an ASE within your VNet. Know Basic supports custom domains and SSL but not auto-scale.
📝 Practice Questions
Click an option to check your answer.
Q1. Which App Service Plan tier is the minimum required to use deployment slots?
A — Basic
B — Standard
C — Premium
D — Isolated
Q2. A company requires complete network isolation for their web app — it must run inside their own VNet with no shared infrastructure. Which App Service Plan tier provides this?
A — Premium v3
B — Isolated (App Service Environment)
C — Standard
D — Basic
Q3. What is the difference between scaling up and scaling out in App Service?
A — Scale up deploys to more regions; scale out adds more instances in the same region
B — Scale up increases VM size (more CPU/RAM); scale out adds more instances of the same size
C — Scale up adds more instances; scale out increases VM size
D — Scale up is for Linux; scale out is for Windows
Q4. Can multiple Web Apps share the same App Service Plan?
A — Yes — multiple apps can share one plan and its compute resources
B — No — each Web App must have its own App Service Plan
C — Only on Premium tier plans
D — Only if apps are in the same resource group
Q5. A development team needs to host a low-traffic internal tool with custom domain and SSL. What is the most cost-effective production-ready tier?
A — Free (F1)
B — Shared (D1)
C — Basic (B1)
D — Standard (S1)
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