Factors that can reduce costs

By AzureGuru Community Editorial
Published in AZ-900 Training
January 17, 2021
2 min read
*This article could be a summary of content for learning purposes. For more information and knowledge, read the original articles in the References section.

Here are some recommended practices that can help you minimize your costs:

  • Understand estimated costs before you deploy: Calculate your projected costs by using the Pricing calculator and the Total Cost of Ownership (TCO) Calculator. Only add the products, services, and resources that you need for your solution.
  • Use Azure Advisor to monitor your usage: Azure Advisor identifies unused or underutilized resources and recommends unused resources that you can remove. This information helps you configure your resources to match your actual workload.

Azure advisor

  • Use spending limits to restrict your spending: If you have a free trial or a credit-based Azure subscription, you can use spending limits to prevent accidental overrun.
  • Use Azure Reservations to prepay: Azure Reservations offers discounted prices on certain Azure services. Azure Reservations can save you up to 72 percent as compared to pay-as-you-go prices. To receive a discount, you reserve services and resources by paying in advance.
  • Choose low-cost locations and regions: The cost of Azure products, services, and resources can vary across locations and regions. If possible, you should use them in those locations and regions where they cost less.
  • Research available cost-saving offers: Keep up to date with the latest Azure customer and subscription offers, and switch to offers that provide the greatest cost-saving benefit.
  • Use Azure Cost Management + Billing to control spending: Azure Cost Management + Billing is a free service that helps you understand your Azure bill, manage your account and subscriptions, monitor and control Azure spending, and optimize resource use.
    • Reporting
    • Data enrichment
    • Budgets
    • Alerting
    • Recommendations

Cost management

  • Apply tags to identify cost owners: Tags help you manage costs associated with the different groups of Azure products and resources. You can apply tags to groups of Azure resources to organize billing data.
  • Resize underutilized virtual machines: A common recommendation that you’ll find from Azure Cost Management + Billing and Azure Advisor is to resize or shut down VMs that are underutilized or idle.
  • Deallocate virtual machines during off hours: Recall that to deallocate a VM means to no longer run the VM, but preserve the associated hard disks and data in Azure.
  • Delete unused resources: Regularly review your environment, and work to identify these systems. Shutting down these systems can have a dual benefit by saving you on infrastructure costs and potential savings on licensing and operating costs.
  • Migrate from IaaS to PaaS services: Over time, one way to reduce costs is to gradually move IaaS workloads to run on platform as a service (PaaS) services. While you can think of IaaS as direct access to compute infrastructure, PaaS provides ready-made development and deployment environments that are managed for you.
  • Save on licensing costs: Many Azure services provide a choice of running on Windows or Linux. In some cases, the cost depends on which you choose.
  • Use Azure Hybrid Benefit to repurpose software licenses on Azure: If you’ve purchased licenses for Windows Server or SQL Server, and your licenses are covered by Software Assurance, you might be able to repurpose those licenses on VMs on Azure.


  • Manage and minimize total cost on Azure



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