Using Azure Cost Management and Billing for cloud cost optimization

Introduction

Azure Cost Management and Billing is a tool that provides insight into the costs of running cloud resources on the Azure platform. This tool is essential for companies that want to understand how much they are spending on cloud resources and optimize their costs. Azure Cost Management and Billing provides various features that enable users to monitor and analyze spending patterns, estimate costs, and optimize their costs. In this tutorial, we will explore how to use Azure Cost Management and Billing to optimize cloud costs.

Getting Started

Before beginning, ensure that you have an Azure account and access to the Azure portal. Azure Cost Management and Billing is available for all Azure customers, and it’s free to use. However, some features may require additional privileges or a paid subscription.

Cost Analysis

The first step in optimizing your cloud costs is analyzing your spending patterns. Azure Cost Management and Billing provides a comprehensive view of your Azure resource usage and costs across all your subscriptions. You can use the Cost Analysis feature to view cost data using filters, groupings, and charts.

To access the Cost Analysis feature, navigate to the Azure portal and click on Cost Management + Billing in the left-hand menu. Click on Cost Analysis in the toolbar to access the feature.

Filters

Cost Analysis allows users to filter cost data by various attributes. You can filter by subscription, resource group, tag, region, and time range. Filtering by these attributes enables you to view costs per area of concern in your Azure environment.

To filter costs, click on the Filter button located in the top toolbar. This will open the Filter pane. Click on the attribute you want to filter by, and select the appropriate value. You can add multiple filters to a single chart.

Groupings

Azure Cost Management and Billing provides various groupings for cost data. Groupings allow users to view cost data at different levels of granularity. The available groupings include subscription, resource group, available API dimensions, instance name, and invoice details.

To group cost data, click on the Group by button located in the top toolbar. This will open the Group by pane. Select the desired grouping, and click Apply.

Charts

Azure Cost Management and Billing provides various charts for cost data. The available charts include line charts, bar charts, pie charts, and tables. Charts provide a visual representation of cost data, making it easier to understand and analyze.

To create a chart, select the desired grouping and filter, and click the Chart button located in the top toolbar. This will open the Chart pane. Select the desired chart type, and click Apply.

Exporting Data

Azure Cost Management and Billing allows users to export cost data to various formats, including Excel, CSV, and Power BI. Exporting data enables users to analyze cost data using third-party tools or perform detailed analysis offline.

To export data, select the desired grouping and filter, and click the Export button located in the top toolbar. This will open the Export pane. Select the desired format, and click Export.

Budgets

The next step in optimizing your cloud costs is setting a budget for your Azure resources. Azure Cost Management and Billing provides a feature called Budgets, which enables users to set a limit on their Azure spending. Budgets send notifications when spending is nearing or exceeding the set limit.

To access Budgets, navigate to the Azure portal and click on Cost Management + Billing in the left-hand menu. Click on Budgets in the toolbar to access the feature.

Creating a Budget

To create a budget, click on the Add button located in the top toolbar. This will open the New budget pane. Enter a name for the budget, select the desired subscription, and enter the budget amount. You can set the budget on a monthly or quarterly basis. Once you’ve set up the budget, click Create.

Notifications

Azure Cost Management and Billing sends notifications when spending is nearing or exceeding the set budget amount. Notifications can be sent via email, webhooks, and Azure Action groups. Azure Action groups allow users to take specific actions when a threshold is exceeded, like sending an email notification or running an Azure Function.

To set up notifications, select the desired budget and click on the Notifications button. This will open the Notifications pane. Select the desired notification type, add the necessary details, and click Save.

Reserved Instances

The final step in optimizing your cloud costs is utilizing Azure Reserved Instances. Azure Reserved Instances enable users to save up to 72% on their Azure VM usage. Reserved Instances are pre-paid VMs that can be purchased for a one or three-year term. Once purchased, Azure Cost Management and Billing automatically applies the VM to the Azure subscription.

To access Reserved Instances, navigate to the Azure portal and click on Cost Management + Billing in the left-hand menu. Click on Reserved Instances in the toolbar to access the feature.

Purchasing a Reserved Instance

To purchase a Reserved Instance, click on the New reservation button located in the top toolbar. This will open the New reservation pane. Select the desired subscription, VM type, and term length. Once you’ve selected the desired options, click the Purchase button.

Applying a Reserved Instance

Once a Reserved Instance is purchased, Azure Cost Management and Billing automatically applies the VM to the Azure subscription. The Savings tab within Reserved Instances provides a detailed breakdown of the savings realized from utilizing Reserved Instances.

Conclusion

In conclusion, Azure Cost Management and Billing is an essential tool for optimizing cloud costs. The Cost Analysis feature provides a comprehensive view of Azure resource usage and costs, while Budgets enable users to set limits on Azure spending with notifications. Lastly, Azure Reserved Instances enable users to save up to 72% on Azure VM usage. By utilizing these features, companies can significantly reduce their Azure costs and maximize their cloud resources.

Related Post