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What Is Azure Cost Management?

Azure Cost Management Azure Cost Management is an absolutely free service available to Azure cloud customers through Azure Cost Management, which is accessible via the Azure portal. It gives you information on the overall cost and usage for all Azure services as well as Azure Marketplace products. It provides insight and reports. It can also provide information about your company’s usage of other cloud service providers.

Once it is enabled, Azure Cost Management continuously monitors your resources and offers regular reports. It is possible to integrate Azure Cost Management with Azure Advisor and receive cost-related recommendations that are tailored to your needs. To further personalize your cost management, you could make use of REST APIs and connect into Microsoft Power BI.

The benefits of Microsoft Azure Cost Management

Cost management in Azure can provide two major advantages for your business getting a better understanding of cloud-based spending, as well as helping you track costs to specific initiatives or departments.

Monitor and optimize Azure Costs

Azure Cost Management lets you examine the past cloud usage and expenditures, as well as predict future costs. It is possible to view costs as the form of a monthly, daily or annual pattern, to spot trends and irregularities and identify ways to optimize and save. The data is directly from Azure thus it displays the exact units upon the basis of which your Azure cost is calculated.

The cost of Map Clouds is borne by Departments or Initiatives

Azure Cost Management classifies your resources into several buckets using concepts of cost entities. A Cost entity can be described as a project or department within your company that is responsible for paying to use Azure’s services. It is also possible to create an cost model that organizes resources based on the tags teams added to the real Azure resources.

After you have properly defined costs and cost models, groups are able to make use of Azure Cost Management to view and analyze costs that are associated with their individual project budgets. It is also possible to set budgets and alerts that warn or restrict overuse of teams, projects, or for specific users.

4 Methods to Reduce Azure Costs using Azure Cost Management and the Related Tools

Azure Cost Management is designed to assist organizations in locating under-utilized resources to reduce waste and cut expenses.

Cost Analysis Report

Cost Analysis report in Azure cost management. Cost Analysis report in Azure Cost Management allows you to examine your company’s expenses in depth, separating costs by using Azure resources attributes.

Here are some examples of questions that you could address using the cost analysis report:

What are the expenses for this month? Check how much you’ve spent and if different cost-related entities are within their budget.

Are there any cost irregularities? Examine the frequency of use or price increases and ensure that the costs are within a reasonable amount and suitable for normal usage.

Are the amounts in your invoice as was expected? Verify your Azure invoice against the actual use of the services and confirm that the billing is what you would have expected. Check if there are significant changes from the previous month and then investigate the reasons for them.

How can we split costs between departments/cost entities? Find out the way Azure costs are distributed over projects, organizational units or even individuals.

Azure Budgets

The Budgets feature within Azure Cost Management allows you to create a budget for Azure services that are based on costs or use. It is recommended to revisit budgets regularly to determine if budgets are not being met and then make adjustments as needed.

Azure Budget also allows you to set up automated triggers to ensure improved cloud governance. For instance, if certain budget thresholds are met it is possible to configure the service to stop VMs in the event that budgets are over. It is also possible to switch your infrastructure to various service levels based on budget triggers.

Azure Pricing Calculator

Azure Pricing Calculator Azure Pricing Calculator often utilized in conjunction with Azure Cost Management to assess pricing for various combination of Azure services. This is useful when you are creating new workloads on Azure or when you are looking to significantly expand existing workloads.

There are a variety of ways to run a particular application or service on Azure and the various options for services, service tiers or choices can have a significant impact on the cost. It is possible to use the Pricing Calculator to test the costs of different configurations and to understand the pricing structure for future usage of Azure.

Azure Advisor

Azure Advisor is an application that helps you identify ways to save money on Azure such as:

Virtual machines that are underutilized, particularly in terms of network or CPU utilization. Then, you can decide to close or increase the size of the VMs.
Purchase reserved Instances (RIs) to VMs which are running continuously for a long time.
Eliminating network resources that are not being used, like ExpressRoute circuits virtual network gateways, or public IPs.
Make your database more efficient through correct-sizing MariaDB, MySQL or PostgreSQL instances.

Azure Cost Management Q&A

How Do I Enable Azure Cost Management?

To enable Azure Cost Management for authorized users:

Log in to the Azure portal using an administrator account for enterprises.
In the drop-down menu choose Cost Management + Billing
Select Billing scopes, then select your bill account
Select Settings, then select Policies from the menu.
Choose the user you wish to allow access to, then set the view Charges option to On

Is Azure Cost Management Free?

Yes, partners and customers of Azure can utilize Azure Cost Management for free to control the Azure costs. The Azure portal offers Azure Cost Management, and additional tools for free that can assist you in managing your spending such as Azure Price Calculator, the Azure Price Calculator, Azure Advisor as well as Azure Migrate.