Tag: Cost

How to Reduce the Costs of your Azure IaaS VMs

How to Reduce the Costs of your Azure IaaS VMs

Azure Infrastructure-as-a-service (IaaS) offers significant benefits over traditional virtualization. With benefits like the possibility to quickly spin up a couple of virtual machine in any Azure region around the world whenever you need it, is pretty powerful. There are a lot more benefits to Azure IaaS virtual machines. However, that’s not part of this blog. This blog post is focused on helping you saving money by reducing the costs when you are using Azure IaaS virtual machines (VM). Some of the tips here will help everyone out there, some of the tips

Pick the right Azure VM series and the right Azure VM size

Reduce cost by picking the right Azure VM size

Reduce cost by picking the right Azure VM size

First of all, obviously, you pay more for larger virtual machines. Something I realized by working with a lot of customers is that they take the on-premises VM size and use the equivalent size in Azure. Not realizing that the VM size they had was way to oversized. But since they had the static capacity on-prem, they didn’t’ care. Now when you pay for more capacity in the cloud, the story is different. So make sure you realize that the Azure VM sizes are not oversized. You can still change the size later to a larger virtual machine if needed. And if you are looking at tools like Azure Migrate to migrate your existing VMs to Azure IaaS, you will have some additional advantages. Azure Migrate asses your environment and helps you pick the right Azure VM size depending on performance data history. Azure Migrate works with Hyper-V and VMware virtual machines, if you want to know more about Azure Migrate, check out my blog post. If you are already running the virtual machine in Azure, Azure Advisor can be helpful to figure out that your virtual machine is underutilized. Picking the right size will help you to save money and reduce the cost of Azure IaaS VMs.



Azure Reservations Reserved Instances and reserved capacity

How to Save Money on Azure using Azure Reservations

I wanted to quickly share something which existing for quite some time but talking with customers still a lot of people don’t know about it yet. And since yesterday the Azure team also shared some news on it, so it is the perfect time to have a look at Azure Reservations (Azure Reserved VM Instances or Reserved capacity). Usually, you pay Azure services in a Pay-As-You-Go model, which gives you the pricing flexibility and agility you expect from the cloud. But, a lot of customers have services like virtual machines or databases which need to run continuously for the next years. With purchasing reservations for these Azure services, you give the Azure team visibility into your one-year or three-year resource needs in advance, and this allows the Azure team to be more efficient with capacity planning. In return, reservations will give you back these savings to you as discounts of up to 72 percent.

The significant change which was announced yesterday is that there are now monthly payment options available for Azure reservations. Which means you can now pay reservations upfront or on a monthly basis. You can find more information about Azure Reservations on Microsoft Docs.

Azure Reservations Chart

Azure Reservations Chart

No worries, you can mix Azure reservations for your predictable capacity needs, with the Pay-As-You-Go model for your unpredictable capacity needs. While purchasing reservations is only a few simple steps in the Azure portal, we also understand that your workload and application needs may change, and exchanging reservations is easy. You can even cancel your reservation at any time and get the remaining months returned for a termination fee.

Azure Reservations are currently available as Azure reserved instances (RIs), for Windows and Linux virtual machines. As well as Azure reserved capacity for Azure data services, like Azure SQL Database, Azure Cosmos DB and Azure SQL Data Warehouse. But there are also a lot of other services available.

Azure Reservations Reserved Instances and reserved capacity

Azure Reservations Reserved Instances and reserved capacity

Combining the Azure Reserved VM Instances and the Azure Hybrid Benefit, you even can save up to 80 percent. To learn more about Azure RIs or reserved capacity, check out the following pages:

To find out more about reservations, check out the Azure reservations page. You should also have a look at the lastest new options like the Azure Dedicated Host and VMware solutions on Azure. If you have any questions, please let me know in the comments.