More about Azure Cost Management
- Red Hat OpenShift on AWS and Azure: Hybrid Cloud Made Easy
- Find and Delete Unused Azure Disks to Reduce Azure Storage Costs
- Azure SQL Pricing Simplified
- Azure Blob Storage Pricing: The Complete Guide
- Azure Disk Pricing: Understanding Your Options
- Hidden Azure Data Transfer Costs and How to Find Them
- Azure Pricing Calculator: The First Step to Saving on Azure
- How to Reduce Your Cloud Bill with the Azure TCO Calculator
- Azure Storage Pricing: Blobs, Files, Tables and Managed Disks
- Azure Cost Optimization: 12 Ways to Save on Azure
- Azure Cost Management: Visualize, Predict and Optimize
- Azure Block Storage and Azure Object Storage: A Complete Guide
- Azure Tiers: Leveraging Storage Tiering with Cloud Volumes ONTAP
- Storage Deduplication, Compression and More for Azure
In this post, we’ll explain what the Azure Cost Management service provides, how it works, and which other Azure services can help you understand and reduce your cloud costs. You can also learn more in our series of articles about cost management and optimization on Azure. In addition, we’ll show how NetApp Cloud Volumes ONTAP can help reduce storage costs for your Azure deployments.
In this article, you will learn:
- What is the Azure Cost Management service
- Insights provided by Azure Cost Management
- Getting started with Azure Cost Management
- Additional Azure cost management tools
- Reducing Azure storage costs with Cloud Volumes ONTAP
- Read more about Azure cost management
What is the Azure Cost Management Service?
Azure Cost Management is provided as part of the Azure portal, and provides information about ongoing utilization and cost of your Azure services and Azure Marketplace offerings. The service can also monitor and provide insights into AWS usage and costs, in a multi-cloud setup.
Unlike billing reports, which tell you how much Azure is billing for each service, Cost Management reports help you understand your costs, identify spending anomalies, and find opportunities for optimization.
Key features of Azure Cost Management
- Always on—continuously monitors and reports on activity in Azure
- Integrates with Azure Advisor—displays tailored recommendations for price optimization, such as opportunities to move to reserved instances, rightsizing and idle resources.
- Customization—provides cost management APIs, allowing you to explore cost and usage data programmatically and create customized filters that let you create unique views of the data in your internal systems.
- BI integration—offers a Microsoft Power BI connector, letting you export cost and usage data to Power BI and perform in-depth BI analysis.
Azure Cost Management pricing
The service is offered free for Azure workloads. If you use it for AWS cost management, there is a charge of 1% of AWS monthly spend. Azure provides a 90 day free trial for new AWS connectors. Another way to analyze spend across multiple clouds is Cloudyn, an Azure service that provides cost insights across Azure, AWS, and Google Cloud (see Additional Azure Cost Management Tools below).
What Insights Does Azure Cost Management Provide?
Azure Cost Management allows you to set budgets for your Azure activity, and can answer questions like:
- What will our costs be for the current month? How much have we spent so far and are we on track to meeting our budget?
- Are any Azure services showing anomalous spend? If so, what is causing the anomaly and how can we resolve it?
- Why is the latest invoice different than we expected? Why did an Azure invoice exceed the expected amount, or why were specific services billed more or less than expected?
- How much should we bill to each department? If your organization charges back cloud costs to specific departments or groups, Cost Management can help you understand how much to charge each group based on their usage.
Getting Started with Azure Cost Management
In this section we’ll provide a taste of the types of information provided by Azure Cost Management, and some basic analyses you can perform.
The Azure Cost Management dashboard shows the following information:
- Accumulated costs for the current billing period, separated into actual amounts billed and a forecast for the rest of the billing period
- Actual spend vs the budget you defined
- Hover over a date to see spending for that day vs the relevant portion of the budget
- Customizable donut charts showing breakdown of spend into the biggest components
Azure Cost Management Dashboard:
You can switch from the default Accumulated Costs view to other views:
- Daily Cost—shows a daily breakdown and any bumps in daily spend over a selected period
- Cost Per Service—breakdown of your overall Azure costs per cloud service, such as Azure Blob Storage or Azure Kubernetes Service
- Cost Per Resource—breakdown of costs per specific resources, such as VMs, disks or databases
Daily Spend View:
To learn proven best practices that can help you optimize costs, many of which can be performed using insights from Azure Cost Management, refer to our article on Azure Cost Optimization.
Additional Azure Cost Management Tools
- Azure Advisor—provides specific recommendations for cost savings, customized for your Azure deployment. For example, Advisor can identify idle resources you should shut down to save costs, or VMs that have been running for months in a steady state, which you can switch to reserved instances.
- Azure Cost Calculator—allows you to input parameters like services required, number of VMs and data volumes, and get an estimate of your cloud costs. Also check out the NetApp Azure Calculator which provides deeper insights into storage costs and helps you compare Azure storage services.
- Azure Budgets—Azure lets you define budgets as an integral part of its resource management. You can set policies dependent on budgets, for example, you can decide to prevent resources from running or scaling up if they have exhausted their budget.
- Cloudyn—Cloudyn is a cloud cost management tool, which Microsoft acquired and integrated with Azure. It provides cost management capabilities across Azure, AWS and Google Cloud. Many of Cloudyn’s features have been ported into the Azure portal and Azure Cost Management, but recommendations related to Cloud Solution Provider (CSP) subscriptions (software licenses purchased through indirect Microsoft resellers) and AWS can only be found in Cloudyn.
Reducing Azure Store Costs with Cloud Volumes ONTAP
NetApp Cloud Volumes ONTAP, the leading enterprise-grade storage management solution, delivers secure, proven storage management services on AWS, Azure and Google Cloud. Cloud Volumes ONTAP supports up to a capacity of 368TB, and supports various use cases such as file services, databases, DevOps or any other enterprise workload, with a strong set of features including high availability, data protection, cloud automation, Kubernetes integration, and more.
In particular, Cloud Volumes ONTAP provides storage efficiency features, including thin provisioning, data compression, and deduplication, reducing the storage footprint and costs for your Azure deployments by up to 70%.
Learn More About Azure Cost Management
Azure cost management is a broad topic. To optimize your costs, you should have a good understanding of Azure pricing models and options across the services you heavily use. Read our additional articles below for information that will help you understand and optimize cloud costs on Azure.
Azure Cost Optimization
Azure provides several important pricing options that can help you save costs: reserved instances, spot instances, Azure Hybrid Benefit (the ability to save move your Microsoft licenses from on-premises machines to Azure), dev/test pricing, and AWS price matching.
Understand if and when you can use these options to generate substantial reductions in your cloud bill. Also learn best practices that can help you improve utilization and optimize cloud usage: right-sizing VMs, switching to B-series VMs or containers, moving to elastic databases, and more.
Azure Storage Pricing
Storage is a significant part of cloud costs for most users of Microsoft Azure. However, each storage service has its own pricing model and storage tiers, and pricing can quickly get complex.
Get a quick overview of Azure’s five core storage services, understand each service’s pricing model, and see concise tables that demonstrate pricing for common scenarios.
Azure Blob Storage Pricing
Azure blob storage is possibly the most common Azure service, and its pricing can be difficult to understand. It depends on multiple factors including types of storage accounts in Azure, types of blob storage, storage tiers, and redundancy options. Gain an in-depth understanding of these factors and how to calculate and forecast your storage costs.
Azure SQL Pricing Pricing
Azure SQL provides the popular Microsoft SQL server as a Platform as a Service (PaaS) offering. There are multiple deployment models and service tiers, adding up to as many as 18 flavors of the Azure SQL service. To add to this complexity, there are two different pricing models you can choose from: Database Transaction Units (DTU) and vCores.
To avoid getting lost in the huge number of pricing tables, start with a quick overview of Azure SQL service options, and a few pricing examples across the most common scenarios. This will make it easier when you dive into Azure’s official pricing and use the price calculator to compute your actual Azure SQL costs.
Read more: Azure SQL Pricing Simplified
Azure Backup Pricing
Backup is a critical part of any Azure deployment, and it comes at a price. Learn about Azure’s backup model and what you can back up on Azure—this can include both resources in the Azure cloud and resources deployed on-premises.
Understand the two main components of Azure backup pricing—a fixed monthly cost per “protected instance”, or machine being backed up, and a storage price per GB-month, and see simple examples that demonstrate how to calculate pricing for your own usage.
Read more: Azure Backup Pricing for Dummies
Azure Storage Efficiencies
Learn how Cloud Volumes ONTAP can help you achieve significant storage efficiencies and cost savings, for both premium and standard Azure storage. Cloud Volumes ONTAP uses a combination of techniques including compression, deduplication, data compaction, thin provisioning to ensure you pay for your true on-demand capacity, efficient and instant snapshots, and near-zero-capacity volume cloning.
Storage Tiering in Azure
Leveraging storage tiers is a critical strategy to reducing your costs in Azure. However, it is complex to manage large volumes of data and ensure the right data ends up in hot, warm, cool or archive storage. Cloud Volumes ONTAP can help by automatically tiering infrequently accessed active data as well as snapshots, standby disaster recovery environments and backups, from expensive block storage to lower cost object storage tiers. For some customers this has achieved a reduction of up to 70% in storage costs.
Azure Block Storage and Object Storage
Understand the difference between block storage on Azure, offered in the form of Virtual Hard Disks (VHD), and object storage, provided as part of the Azure Blob Storage service. Understand when it’s optimal to use each type of storage, the comparative storage costs, and the cost savings you can achieve by leveraging storage tiers on Azure Blob Storage.
Want to get started? Try out Cloud Volumes ONTAP today with a 30-day free trial
Learn how to migrate your workloads and data to Google Cloud, including in-depth comparisons between GCP and other cloud providers, tools, strategies, costs, and more.
See top articles in our guide on Google Cloud migration: