How To Reduce Your Monthly Azure Usage

In the age of digital transformation, organizations are progressively integrating cloud computing into their operations to enhance efficiency, adapt resource allocation to meet demand, and notably decrease IT costs. Microsoft Azure emerges as a leading global provider of cloud computing services, offering a comprehensive suite of tools and solutions spanning computing capabilities, storage, network infrastructure, databases, and artificial intelligence.

In this article, we will provide an insightful overview of the various strategies for optimizing resource usage that ensures cost-efficiency and how to maximize the benefits of Microsoft Azure. Whether you’re an Azure pro or just dipping your toes into Microsoft Azure, our handy guide will help you make the most of your resources in the cloud.

Use the right tools.

Microsoft Azure provides us with the tools to monitor and optimize your workloads.

Cost Management:?

• Users can enhance their ability to assess and improve cloud expenditure by gaining insights into their spending habits. This enables them to pinpoint patterns and areas within their Azure usage that can be optimized.
• You have the option to establish budgets and set up alerts that will notify you when you surpass pre-established limits.
• Cost analysis provides valuable insights into the primary consumers of your Azure resources. This includes the ability to access your monthly projections, forecasts for individual services, expenses associated with specific tags, and a variety of other cost-related details.

Azure Advisor:

• This serves as your personalized recommendation system, empowering you to fine-tune your Azure workloads for optimal performance.
• You can identify underutilized resources, such as over-provisioned virtual machines, that you can downgrade to save costs.
• Offers recommendations regarding which services are well-suited for Azure Reservations.

Azure Monitor:

• The monitoring dashboard provides the capability to gather, analyze, and take action based on telemetry data from both your cloud and on-premises environments.
• Track resource performance and utilization, providing data for identifying inefficient resources and potentially aiding you in managing your Azure expenditures.
• Establish alerts based on performance or usage metrics, enabling you to anticipate and prepare for resource demand, thus mitigating unexpected surges in resource consumption that could result in higher costs.

Reduce Azure spend by committing.

Azure Reservations:

• Enables you to secure resources for a duration of one year or three years, offering a discounted rate of up to 72% in comparison to the pay-as-you-go pricing model.
• You have the flexibility to make your reservation payment either upfront or on a monthly basis. Even if you opt for monthly payments, the total cost will remain consistent with the upfront payment option.

Azure savings plan for compute:

• This pricing model offers flexibility and can lead to savings of up to 65% compared to pay-as-you-go rates, provided you commit to a predetermined hourly spending amount on compute services for either one or three years.

Bring your own license (BYOL)

Azure Hybrid Benefit:

• Suppose you have existing on-premises Windows Server or SQL Server licenses with Software Assurance. In that case, you can use the Azure Hybrid Benefit to save on Azure virtual machines (VMs), and Azure SQL Database managed instances. This can significantly reduce the cost of running Windows Server and SQL Server workloads in Azure.

Reduce Azure spend by following best practices:

Here are some general tips on how to reduce your Azure usage.

Right-sizing your resources:

• When configuring particular resources, you will be prompted to specify their type, size, and location, all of which can impact associated expenses. It's advisable to remain deliberate when provisioning your resources and begin with a modest setup. Remember that you can easily upgrade your resources as needed, typically within a matter of minutes.
• During the provisioning of a virtual machine, you will also be prompted to specify the type and size of your disk. It's important to choose the performance level that aligns with your workload needs and budget considerations. Keep in mind that disks are priced based on tiers, and it's advisable not to overprovision your tier to avoid being charged at a higher tier if you do.

Shutdown and deallocate virtual machines when not in use:

• Azure services can be likened to your power or water utilities, and just like you wouldn't leave them running when not in use, the same principle applies to virtual machines. If your virtual machines are only required during specific timeframes, there's no need to keep them running constantly. Azure automation can help you automatically shut them down when they are not in use. Leaving unused resources active is akin to having a leak in a water pipe – it may go unnoticed, but it can lead to unexpected costs if left unattended.

Implement autoscaling and schedule:

Employ autoscaling to dynamically adapt the quantity of your resources in response to real-time demand or by scheduling increases according to anticipated demand. This approach guarantees that you only incur costs for the resources necessary at any given moment.

Implement caching:

Azure Cache for Redis can be utilized to cache frequently accessed data, thereby reducing the strain on your applications and databases. This helps in lowering operational costs and enables you to run your resources more efficiently.

Optimize application performance:

Continuously enhance and optimize your application code to minimize resource consumption. More efficient applications will demand fewer resources, resulting in reduced costs.

Bandwidth:

Data transfer costs are frequently underestimated, making it challenging to predict these expenses when planning an Azure migration. It's crucial to bear in mind that data ingress (data going into Azure) is generally free, while data egress (data transfer out from Azure) and transfers between availability zones incur fees. Whenever feasible, try to keep your data transfers within the Azure network. You can accomplish this by making use of service endpoints and private endpoints.

Use the Azure Calculator:

• Whenever you plan on migrating or deploying new resources to Azure, it is wise to use the Azure calculator to estimate how much your resources will cost you once they are in Azure. Play around with the calculator and learn how to use it effectively.

Remember that cost optimization is a never-ending process. Always look for ways to save costs without sacrificing security and application performance. You can effectively manage your Azure usage by applying the cost-saving measures we discussed to avoid encountering the so-called “bill shock”.

* This newsletter was sourced from this Tutorials Dojo article.