In this blog, we will examine the second-most popular public cloud service provider - Microsoft Azure, understand Azure cost optimization in detail, explore the key elements and tools, a run-down on the built-in pricing models, and the ways to maximize those benefits on your Azure portal. In our previous blog, we evaluated the key aspects of optimizing cloud spend of AWS, its key drivers, the various pricing models, as well as best practices to follow.
Multi-Factor Authentication-as-a-ServiceĪzure Cost Optimization - 10 Best Practices to Optimize Your Cloud Costs on Azure.Enterprise Applications Managed Services.Most clients can benefit from both the PaYG model and Reserved Instances. NPI encourages clients to do the math when considering moving workloads to the cloud. While I agree that it’s unlikely that you will turn your virtual instances on at 7:00a and turn them off at 5:00p every day, you’ll know your demand and peak utilization better than any outsider. Instead of paying over $100 a month for those VMs, you’ll pay about a third of that:
Let’s call it 10 hours a day for 20 days a month. Those are more modest virtual machines and, perhaps, you’ll only need those virtual instances during business hours. But for the first two skus above (F2s V2 & D2 v3 sku), it could be a different story. If you’re moving big data to Microsoft’s cloud and are processing trillions of calculations a year, you’ll undoubtedly benefit from Reserved Instances. And, if you’re curious, that works out to 365 days a year at 24 hours a day. Divide 730 by 24 and you’ll see that you’re being quoted for 30.416 days. The pricing above, which came from the Azure Online Pricing calculator referenced at the top of this blog post, is based upon 730 hours. It’s obvious that you’ll receive significant savings using the Reserved Instances, isn’t it? Well, maybe. Common compute VMs and the associated Microsoft Azure pricing: It’s important to determine your intended usage for Pay as You Go to prepare a proper analysis. Meanwhile, the Reserved Instances look great if you just look at the pricing calculator. This leads to a somewhat skewed analysis if you compare 730 hours Pay as You Go vs. The monthly cost of a Reserved Instance is based upon the entire month (730 hours) and is designed for continuous use, yet the quotes on the pricing calculator for the Pay as You Go model are also based upon 730 hours. The Pay as You Go model is billed on a per second basis and you can start or stop the service at any time – paying only for what you use. There are many options available under Azure: compute, networking, storage, databases, analytics, identity, security, and more. In either event, we would recommend that you do the math and view the Azure Online Pricing Calculator. If you have seasonality to your workloads, or if you know certain workloads are only run during business hours, you may wish to consider the Pay as You Go model. Why would you buy a Reserved Instance? If you know that you have a high demand workload that will be running 7x24x365, the Reserved Instance is a great choice. A Reserved Instance is an upfront commitment for an Azure service, and in return for your upfront commitment, you can receive up to a 72% discount. Confused by Microsoft Azure pricing? It’s actually pretty simple – the company offers Azure on a Pay as You Go basis, or you have the option to pre-purchase a “Reserved Instance” for one or three years for many of the Azure products.
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