Mastering Azure Cost Optimization: Dominate Your Cloud Spending with 5 Powerful Tools

Pricing and Total Cost of Ownership calculators in Microsoft Azure

Pricing Calculator: Estimates the cost of Azure services based on usage and selected services.

Total Cost of Ownership (TCO) Calculator: Evaluates the overall cost of using Azure, considering factors like infrastructure, licensing, and operational expenses.

Compare the Pricing and Total Cost of Ownership calculators

Two calculators help you estimate Azure costs:

Pricing and Total Cost of Ownership
Pricing and Total Cost of Ownership
  • Pricing calculator: Estimates costs for specific Azure resources.
  • TCO calculator: Estimates the total cost of moving to Azure, including potential savings.

Pricing calculator

The pricing calculator estimates the cost of specific Azure resources. You can use it for individual resources, solutions, or example scenarios.

With the pricing calculator, you can estimate the cost of any provisioned resources, including compute, storage, and associated network costs. You can even account for different storage options like storage type, access tier, and redundancy.

 Note-  The Pricing calculator is for information purposes only. The prices are only an estimate. Nothing is provisioned when you add resources to the pricing calculator, and you won’t be charged for any services you select.

TCO calculator

The TCO calculator compares the cost of your current on-premises infrastructure with the estimated cost of running it in Azure. You enter your current configuration and assumptions, and the calculator provides a cost comparison.

Define your requirements

On-premise web app with 2 VMs, load balancer, and SQL Server can be migrated to Azure using:

  • Azure Virtual Machines (VMs)
  • Azure Application Gateway (load balancing)
  • Azure SQL Database
  • Internal use: Not accessible to customers.
  • Moderate computing power: No massive requirements.
  • Continuous operation: 730 hours/month for VMs and database.
  • Network traffic: 1 TB/month.
  • Database storage: 32 GB maximum, no high-performance needs.

With these details, we can start exploring Azure options that best fit your application.

Explore the Pricing calculator

  • Products: This is where you’ll select specific Azure services to include in your estimate. Think of it as building your cloud solution from individual components.
  • Example scenarios: These are pre-configured scenarios that you can use as a starting point. They offer common cloud solutions for various needs, saving you time and effort.
  • Saved estimates: This section allows you to store and revisit your previous estimates, making it easy to compare different options or track changes over time.
  • FAQs: If you have any questions about the Pricing calculator or need clarification on specific terms or features, this is where you’ll find answers.

Add services to the estimate

On the Products tab, select the service from each of these categories:

Category

Service

Compute

Virtual Machines

Databases

Azure SQL Database

Networking

Application Gateway

Configure services to match your requirements

  1. Under Virtual Machines, set these values:

Setting

Value

Region

West US

Operating system

Windows

Type

(OS Only)

Tier

Standard

Instance

D2 v3

Virtual machines

2 x 730 Hours

  1. Under Azure SQL Database, set these values:

Setting

Value

Region

West US

Type

Single Database

Backup storage tier

RA-GRS

Purchase model

vCore

Service tier

General Purpose

Compute tier

Provisioned

Generation

Gen 5

Instance

8 vCore

  1. Under Application Gateway, set these values:

Setting

Value

Region

West US

Tier

Web Application Firewall

Size

Medium

Gateway hours

2 x 730 Hours

Data processed

1 TB

Outbound data transfer

5 GB

Here’s a recap of the final steps in the Pricing calculator:

  • Review total cost: Check the estimated cost at the bottom of the page and adjust the currency if needed.
  • Export: Save the estimate as an Excel file.
  • Save: Store the estimate for later reference.
  • Share: Generate a URL to share the estimate with your team.

Once you have your estimate, you can:

  • Make adjustments: Update the estimate as your requirements change.
  • Experiment: Try different configurations and see how they affect the cost.
  • Create a purchase plan: Use the estimate to plan your Azure purchases.

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