How to Reduce Azure Cost: Simple Tips and Best Practices

To reduce Azure cost, start by right-sizing your virtual machines and use reserved instances for steady workloads. Also, enable Azure Cost Management to monitor spending and set budgets to avoid surprises.

Syntax

Here are common Azure cost-saving actions and their usage:

• Right-size VMs: Choose VM sizes that match your workload needs.
• Use Reserved Instances: Pre-pay for VMs to get discounts.
• Enable Auto-shutdown: Automatically stop VMs when not in use.
• Set Budgets and Alerts: Track and control spending with Azure Cost Management.

bash

az vm resize --resource-group MyResourceGroup --name MyVM --size Standard_DS2_v2

az reservations purchase --reserved-resource-type VirtualMachines --sku Standard_DS2_v2 --term P1Y --quantity 1

az vm auto-shutdown --resource-group MyResourceGroup --name MyVM --time 1900

az consumption budget create --amount 100 --time-grain Monthly --name MyBudget --resource-group MyResourceGroup

Example

This example shows how to resize a VM to a smaller size, enable auto-shutdown at 7 PM, and create a monthly budget of $100 to control costs.

bash

az vm resize --resource-group MyResourceGroup --name MyVM --size Standard_B1s

az vm auto-shutdown --resource-group MyResourceGroup --name MyVM --time 1900

az consumption budget create --amount 100 --time-grain Monthly --name MyBudget --resource-group MyResourceGroup

Output

VM 'MyVM' resized to 'Standard_B1s'.
Auto-shutdown set for VM 'MyVM' at 19:00.
Budget 'MyBudget' created with amount $100 monthly.

Common Pitfalls

Common mistakes when trying to reduce Azure costs include:

• Choosing VM sizes too small, causing poor performance.
• Not using reserved instances for steady workloads, missing discounts.
• Forgetting to turn off or delete unused resources.
• Ignoring cost alerts and budgets, leading to unexpected charges.

bash

## Wrong: Using large VM without need
az vm create --resource-group MyResourceGroup --name MyVM --size Standard_DS4_v2

## Right: Resize to smaller VM
az vm resize --resource-group MyResourceGroup --name MyVM --size Standard_B1s

Quick Reference

• Right-size resources: Match capacity to actual needs.
• Use reserved instances: Save up to 72% on VMs.
• Enable auto-shutdown: Stop VMs when idle.
• Delete unused resources: Avoid paying for what you don't use.
• Set budgets and alerts: Monitor and control spending.

Key Takeaways

Right-size your Azure resources to avoid paying for unused capacity.

Use reserved instances for predictable workloads to get significant discounts.

Enable auto-shutdown on VMs to save costs during off-hours.

Regularly delete or stop unused resources to prevent unnecessary charges.

Set budgets and alerts in Azure Cost Management to monitor and control spending.