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Is Premium V4 Actually Cheaper Than V3?

October 25, 2025 7 answers
Asked by CuriousCoder99
I'm setting up some new app services and I've noticed that the Premium V4 tier is now available. However, when I check the Azure pricing plans in the portal, I can't see V4 pricing. But according to the Azure pricing calculator, the V4 tier seems to be cheaper than the V3 tier. For instance, in the East US region, the P1V4 costs $174/month, while P1V3 is $230/month. I was expecting the newer V4 to be more expensive due to higher performance. Am I misunderstanding something?
App Services Applications Azure cloud computing Premium V4 pricing comparison

Answers

VMWatcher
Costs can fluctuate based on the types of underlying machines these services use. For example, there’s been a lot of VM capacity issues lately, and some regions prioritize cheaper AMD machines over Intel ones, which can affect pricing.
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CloudExplorer
Pricing can vary by region—I've noticed that V4 is more expensive in West Europe and cheaper in North Europe. It really depends on local demand and capacity.
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CautionaryTale
Just a heads-up, V4 App Services don’t offer stable outbound IP addresses. You can check the docs for more info. We’re primarily using US East 2, and while V4 was available, we couldn't find clear pricing. We did create an app service plan with V4 via CLI, though!
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TechWhiz88
It's likely due to new hardware being more cost-effective to operate. Azure might be offering V4 at a lower price to incentivize users to make the switch before phasing out older options.

HumorMe42: Then JACK THE PRICES TO THE ROOF BABYYYY LETS GO DADDY CSUITE NEEDS A NEW YACHT!

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SkepticalTechie
It's actually a misconception to think that newer means more expensive in the cloud; that's not always the case!
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BusinessSavvyCEO
We're opting for Premium V3 right now because it has reservation options making it less expensive overall. I've heard they’re working on allowing reservations for V4, so that might change things soon.
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InfoGuru77
The V3 tier is actually cheaper compared to some original premium options as well. Azure changes things up based on demand and server availability.
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