What does Azure RI 'Instance Size Flexibility' mean and how does it work?

Can I upsize or downsize within the same instance family, is there a price reduction in the monthly AWS bill?

Azure Standard RIs for VMs offer instance size flexibility meaning that regardless of the RI size you have, it can cover running instances of any size in its particular family.

This means that if you scale up an instance, the smaller contract sizes will accumulate to cover the machine, as long as the total hours being used are less than what is reserved. You can easily verify this on your invoice and observe it reflected on our billing savings page.

Azure offers more detailed information regarding Instance Size Flexibility for Azure Reserved Instances, including details about the instance sizes and their associated normalization factors.