Planning and managing costs

Understanding Microsoft Azure Management and Governance

Maarten Van den Broeck

Senior Content Developer at DataCamp

Factors that affect costs

  • Consumption

    • Using resources leads to costs

  • Subscription type

    • Depending on subscription type, there might be allowances or free products

  • Resource type and settings

    • Resources can have higher tiers that increase costs

  • Azure region

    • Regional pricing differs, and data transfers to other regions are more expensive

Drawing of stack of coins with a dollar sign

Understanding Microsoft Azure Management and Governance

Ways to manage costs

  • Maintenance and monitoring: find underused or over-expensive resources
  • Other pricing models: short-term flexibility vs. long-term engagement
  • Geography: minimize inter-regional data transfers
  • Cost management tools: cost estimation, budgets, and alerts

Azure Reservations pricing model example

Understanding Microsoft Azure Management and Governance

Cost management tasks

  • Compare costs for running on-premises infrastructure vs. Azure cloud
  • Estimate cost for provisioning resources in Azure
  • Analyze costs
  • Set up budgets and automatic alerts

https://assets.datacamp.com/production/repositories/6524/datasets/50db4d98f8f53e285f7e1b67551b799b51189c3d/cost_management.png

Understanding Microsoft Azure Management and Governance

Example use case: costs of a virtual machine (VM)

For your data project, you create a new VM in Azure, balancing the requirements for the project with budget limits

  • You can estimate the costs of the VM and other needed resources beforehand
  • Azure informs you of the cost per month when creating the VM and choosing its size
  • Once the VM is created, you can also monitor costs and usage

GIF demonstrating cost of VM

Understanding Microsoft Azure Management and Governance

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Understanding Microsoft Azure Management and Governance

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