Conquering Azure Costs: Overcome Budget Constraints with 3 Critical Factors

Describe factors that can affect costs in Azure

  • services used
  • workloads 
  • networking needs
  • storage requirements

Azure shifts costs from CapEx to OpEx. This means you pay for what you use, not upfront for infrastructure. Many factors affect your costs, including resource type, usage, maintenance, location, subscription type, and marketplace purchases.

Resource type

Azure costs are influenced by several factors:

  • Resource type: Different resources have different pricing models.
  • Resource settings: The size, configuration, and performance of a resource affect its cost.
  • Azure region: Prices may vary depending on the location of the resource.

Azure tracks your resource usage to calculate your bill.

Examples

Azure resource costs are influenced by:

  • Storage account type: Blob, performance tier, access tier, redundancy, and region affect costs.
  • Virtual machine (VM) type: Operating system licensing, processor cores, storage, and network interface affect costs.
  • Region: Prices may vary depending on the location of the resource.

Provisioning the same resource in different regions can result in different costs.

Consumption

Azure pricing models:

  • Pay-as-you-go: You pay for the resources you use.
  • Reserved instances: Commit to using a set amount of resources in advance for a discount (up to 72%).

Using reserved instances can save you money on consistent workloads. However, you can still pay for additional resources as needed. This provides flexibility and significant savings.

Maintenance

Cloud flexibility allows you to adjust resources based on demand. Resource groups help organize your resources. To control costs:

  • Monitor resource usage and deprovision unused resources.
  • Avoid provisioning additional resources unnecessarily.

Geography

Azure region affects resource costs due to variations in power, labor, taxes, and fees. Network traffic costs also vary based on distance.

Network Traffic

Billing zones and bandwidth affect Azure costs.

  • Billing zones: Group Azure regions for billing purposes.
  • Bandwidth: Data moving in and out of Azure datacenters.
  • Inbound data: Usually free.
  • Outbound data: Priced based on zones.

Refer to the bandwidth pricing page for more details on data ingress, egress, and transfer costs.

Subscription type

Azure subscription types can include usage allowances that affect costs.

  • Azure free trial: Provides free access to many products for 12 months and a credit for the first 30 days.

Alwaysfree products are available even after the free trial ends.

Azure Marketplace

Azure Marketplace allows you to purchase third-party solutions and services. These can be pre-configured servers, network appliances, or connectors to other services. You may pay for both Azure services and third-party services. Billing structures are set by the vendor. All solutions are certified and compliant with Azure policies and standards.