In this Azure Essentials Show episode, Thomas and Britt from Microsoft Azure provide practical guidance for estimating and managing Azure cloud costs, focusing on essential Microsoft tools and strategies.

Azure Cost Estimation: Practical Strategies and Tools Explained

Presented by Thomas Maurer and Britt Henderson (Microsoft Azure)

Estimating and managing cloud costs can be daunting—Azure’s pricing is often seen as complex and difficult to predict. In this episode, Thomas and Britt walk you through a practical, three-layer framework and showcase critical Microsoft tools to help you take control of your Azure pricing journey.

Key Takeaways

  • Three-layer Framework
    • Architecture: Understanding which resources and services you’ll use lays the foundation for estimating costs. Careful architecture design is the first step.
    • Configuration: The exact specs and configurations of your resources (such as VM sizes, storage options, networking choices) drive costs up or down.
    • Usage Estimation: Anticipating how your workloads will operate (e.g., run-time hours, data transfer, scaling) allows for accurate price estimates.
  • Essential Tools for Cost Estimation
    • Azure Pricing Calculator: Build estimates for new or migrating workloads by simulating configurations. Try it here
    • Azure Advisor: Receive recommendations specific to your environment to reduce costs and improve resource utilization. Learn more
    • Azure Monitor: Track resource performance and usage trends to predict ongoing costs. Details
    • Microsoft Cost Management: Monitor and control real-world spending, set budgets, and create alerts. Overview
    • Azure Migrate: Estimate pricing for planned migrations from on-premises.
    • Microsoft Copilot in Azure: AI-driven assistance for interpreting billing data and finding optimization opportunities. About Copilot

Practical Steps

  1. Start with a high-level architecture draft.
  2. Use the Pricing Calculator to model possible configurations and get cost estimates.
  3. Refine your predictions by specifying workload characteristics (e.g., anticipated hours of operation).
  4. After deployment, monitor usage with Azure Monitor and Cost Management.
  5. Use Azure Advisor and Copilot to continually optimize resource choices and spending.

Resources

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This session arms you with a clear understanding of Azure pricing and the tools you need for effective, predictable budgeting. With these resources and strategies, managing cloud costs becomes part of your standard Azure workflow.