Managing Azure Costs - Summary
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In this course, you’ll learn how to forecast Azure costs, choose the right subscription and purchasing options, track spending, and use cost reduction strategies.

Learning Objectives

  • Use the Total Cost of Ownership Calculator to determine cost savings from migrating to Azure 
  • Understand Azure subscription and purchasing options
  • Use the Pricing Calculator to forecast Azure service costs
  • Apply Azure cost reduction strategies
  • Create budgets and analyze spending using Azure Cost Management

Intended Audience

  • Anyone who needs to manage costs on Azure
  • People preparing to take either the Azure Fundamentals or Azure Solutions Architect exam




Let’s do a quick review of what you’ve learned.

The Total Cost of Ownership Calculator helps you compare how much your current workloads cost in your on-premises environment with how much they would cost in Azure. It takes into account a wide range of costs, such as real estate, electricity, and IT labor costs. You don’t need to have an Azure subscription to use the TCO Calculator.

A subscription is used by Microsoft for billing purposes. Each Azure resource is assigned to one subscription. A billing account contains the payment details, such as your credit card information. Every subscription needs to be linked to a billing account.

The person who creates an Azure subscription becomes the global administrator for it and has full access to every aspect of that subscription.

The three types of subscriptions are free, pay-as-you-go, and member offers. The free trial subscription lets you use a limited amount of certain Azure services. The pay-as-you-go subscription lets you pay for the Azure resources as you use them. Member offers give you reduced rates for Azure services if you’re a member of certain groups.

There are three options for purchasing Azure subscriptions. With Web Direct, you purchase directly through the Azure website. With an Enterprise Agreement, you sign a long-term commitment to use a certain amount of Microsoft products and services. The third option is to purchase Azure through a Cloud Solution Provider, which is a Microsoft partner that develops Azure-based solutions.

The Azure Marketplace lets you buy third-party virtual machine images that run on Azure.

The Pricing Calculator gives you cost estimates for Azure services. Each type of Azure service has different options that affect the price.

If network latency or data residency requirements aren’t important for your application, you could reduce costs by running it on Azure services in one of Microsoft’s less expensive regions.

When you transfer data to an Azure resource, it’s known as ingress traffic, and the cost is free. When you transfer data from an Azure resource, it’s known as egress traffic, and there’s often a cost. If you transfer within the same region, it’s free, but if you transfer to another region or to a location outside of the Azure network, then there’s a cost.

If you know that you’re going to be using an Azure resource for more than a year, then you can save money by purchasing a reserved instance.

With the Azure Hybrid Benefit, if you have existing Windows Server or SQL Server licenses, and they’re covered by a Microsoft Software Assurance plan, you can move those licenses to Azure to save money.

Azure Spot VMs can be up to 90% cheaper than regular VMs, but spot VMs can be removed with only 30 seconds’ notice, so they should only be used for tasks that can be restarted.

Azure Advisor gives you recommendations on how to reduce costs, such as letting know if you have underutilized VMs that could be resized to a cheaper option or shut down entirely.

To stop a VM from incurring charges, you need to delete the VM itself plus any associated data disks and public IP addresses.

Azure Cost Management provides cost analysis, budgets, alerts, and recommendations. You can track costs separately at three different levels: management groups, subscriptions, and resource groups. You can also track the total cost of all resources that have the same tag applied to them.

That’s all for now. Please give this course a rating, and if you have any questions or comments, please let us know. Thanks!

About the Author
Learning Paths

Guy launched his first training website in 1995 and he's been helping people learn IT technologies ever since. He has been a sysadmin, instructor, sales engineer, IT manager, and entrepreneur. In his most recent venture, he founded and led a cloud-based training infrastructure company that provided virtual labs for some of the largest software vendors in the world. Guy’s passion is making complex technology easy to understand. His activities outside of work have included riding an elephant and skydiving (although not at the same time).