How to Master Azure Cost Optimization and Monitoring: A Step-by-Step Guide

I recall my first experience with Azure. It was the thrill of discovering a new cloud platform. I received a surprisingly large bill that left me stunned.

The more I learned, the more I realized that cost management in cloud computing is one major decision factor. I am very excited to share this basic tutorial. I will guide you through the setup and use of Azure cost optimization and monitoring tools.

These steps will help you control your Azure costs. You will get the best value from your cloud investment.

What is Azure Cost Optimization and Monitoring?

Basically, cost optimization and monitoring mean managing and controlling your Azure costs. This covers understanding your usage, finding savings, and acting on them with a cost-cutting strategy.

Ignorant at Great Cost: Why Cost Control Matters

If not managed properly, your spending in Azure can spiral upwards very quickly. This may cause budget overruns that could hurt your business. Tracking and optimizing your costs will prevent pitfalls. It will ensure you get value for money from this investment.

Getting Started: Essential Requirements

Now that we've covered the importance of cost optimization, let's dive into the first step: setting up Azure Cost Estimator. This tool will help you forecast your costs and identify potential cost savings. To get started, follow these steps:

• An Azure subscription

• Access to the Cost Management + Billing section

• Necessary permissions and roles for cost optimization

Monitoring Azure Costs

With Azure Cost Estimator set up, it's time to start monitoring your costs. This will help you identify trends and anomalies in your spending. To monitor your costs, follow these steps:

1. Navigate to the Cost Management + Billing section:

   • Log in to the Azure portal

   • Go to the Search bar and type “Cost Management + Billing”.

• Select "Cost Management" from the left menu bar.

2. Click on "Cost Analysis":

   • In the Cost Management section, click on "Cost Analysis" in the navigation menu.

3. Select a subscription and time range to view cost data:

   • Choose the subscription you want to monitor.

• Select a time range for which you want to view cost data (e.g., last 30 days, last 12 months)

• Click "Apply" to view the cost data

Identifying Cost Optimization Opportunities

Now that you're monitoring your costs, it's time to identify areas for optimization. Azure Advisor will provide you with personalized recommendations for cost savings. To get started, follow these steps:

1. Navigate to the Advisor section:

   • Log in to the Azure portal.

   • Go to the Search bar and search "Advisor".

• Select "Advisor" from the list. You will see the interface as shown below.

2. Click on "Cost" to view recommendations:

   • In the Advisor section, click on "Cost" in the navigation menu.

   • Select "Cost" from the dropdown menu.

3. Review and implement recommended optimizations:

   • Review the list of recommended optimizations

   • Click on each recommendation to view more details

   • Implement the recommended optimizations to reduce costs

Implementing Cost Optimization Strategies

Now that you've identified areas for optimization, it's time to implement cost optimization strategies. Here are three key strategies to get you started:

1. Right-size your resources

Ensure your resources are properly sized for your workload. Overprovisioning can lead to unnecessary costs, while under provisioning can impact performance. To right-size your resources:

• Monitor usage patterns and adjust resource sizes accordingly

• Use Azure Advisor recommendations for resource optimization

• Consider using auto scaling to dynamically adjust resources

2. Use reserved instances

Reserved instances can provide significant cost savings for predictable workloads. By committing to a one- or three-year term, you can save up to 72% on virtual machine costs. To use reserved instances:

• Identify workloads with predictable usage patterns

• Purchase reserved instances for eligible resources

• Ensure you understand the commitment terms and conditions

3. Implement automation using Azure Automation

Automation can help streamline cost optimization efforts. Use Azure Automation to:

• Schedule regular resource cleanup and optimization tasks

• Implement automated scaling and provisioning

• Integrate with Azure Advisor for automated optimization recommendations

Personal Insights

Managing Azure costs is an ongoing process that requires attention and refinement. I've learned that monitoring and analysis are crucial. Automation and right-sizing resources can save a lot. Azure Advisor and Azure Automation are powerful tools in this journey. I've cut costs and maximized my cloud investment by following these steps.

Follow Umesh Pandit

linkedin.com/in/umeshpandit

x.com/umeshpanditax

https://www.linkedin.com/newsletters/umesh-pandit-s-notes-7038805524523483137/