Azure Cost Savings

Managing cloud infrastructure efficiently is crucial for businesses in today’s digital age. Microsoft Azure offers numerous benefits but can lead to high costs if not managed properly. This blog post will share insights from our recent webinar and presentation on Azure cost savings, ensuring you maximise your investment.

Common Pitfalls in Azure Management

Managing Azure cloud infrastructure can be challenging, especially if unaware of the common pitfalls. Here are some of the main issues that can lead to unnecessary expenses:

Improper Access Control

• Issue: Untrained personnel accessing the environment can lead to unnecessary resource usage.
• Solution: Implement strict access control policies to ensure only authorized and trained personnel can access and manage resources.

Lack of Housekeeping and Governance

• Issue: Unused resources can accumulate without regular housekeeping and governance, leading to higher costs.
• Solution: Regularly review and clean up your resources to avoid paying for no longer needed services.

Oversized VM Instances and PaaS Resources

• Issue: Using default settings or oversized instances can incur higher costs.
• Solution: Right-size your virtual machines and PaaS resources to match your needs.

Lack of Automation and Monitoring

• Issue: Without automation and regular monitoring, it can be challenging to maintain visibility and control over your cloud environment.
• Solution: Implement automation and regular monitoring to keep track of your resources and optimize costs.

Effective Azure Cost Savings

To manage your Azure spending effectively, consider implementing the following strategies:

Optimal Subscription Plans

• Issue: Using the wrong subscription plan can lead to higher costs.
• Solution: Choose the right subscription plan, such as CSP or DevTest, to save significantly on your overall spend.

Housekeeping

• Issue: Unused resources can accumulate over time, leading to higher costs.
• Solution: Regularly audit your environment to identify and eliminate unnecessary resources. This can save up to 25% on costs.

Reserved Instances

• Issue: Pay-as-you-go pricing can be expensive for long-term use.
•  Solution: Utilize reserved instances for long-term savings on compute resources. This can save up to 70% on costs.

Automation

• Issue: Manual management of resources can be time-consuming and prone to errors.
• Solution: Automate scaling and resource management to optimize costs during peak and off-peak times.

Advanced Techniques for Azure Cost Savings

For more advanced cost optimization, consider the following techniques:

Server-less SQL Databases

• Issue: Traditional SQL databases can be costly, especially when not in use.
• Solution: Use serverless options to automatically pause databases when not in use, saving up to 50% on costs.

Application and Database Optimization

• Issue: Inefficient applications and databases can consume more resources than necessary.
• Solution: Ensure your applications and databases run efficiently to minimize resource consumption.

Hybrid Use Benefits

• Issue: Purchasing new licenses for cloud environments can be expensive.
• Solution: Leverage existing on-premises licenses in the cloud to avoid additional licensing costs.

Tools and Resources

To help manage your Azure cost savings, utilize the following tools and resources:

Azure Pricing Calculator

• Issue: Estimating costs for new resources can be challenging.
• Solution: Use the Azure Pricing Calculator to estimate costs and plan your Azure environment effectively.

Tagging and Policy Management

• Issue: Without proper tagging and policies, it can be challenging to manage resources efficiently.
• Solution: Implement tagging for better resource visibility and use policies to control resource deployment and costs.

Monitoring and Alerts

Effective monitoring and alerts can help you stay on top of your Azure spend:

Cost Management Alerts

• Issue: Unexpected cost spikes can lead to budget overruns.
• Solution: Set up alerts for budget spikes to manage costs proactively.

Scheduled Shutdowns

• Issue: Non-essential resources running during off-peak hours can lead to higher costs.
• Solution: Automate shutdowns of non-essential resources during off-peak hours.

Auto Pause

• Issue: Databases running when not in use can be costly.
• Solution: Use server-less SQL databases that pause when not in use to save costs.

Business and Process Optimisation

In addition to technical strategies, consider optimizing your business processes:

Simplify Systems

• Issue: Complex systems can be expensive and difficult to manage.
• Solution: Avoid complex systems that offer more than needed and use SaaS solutions to reduce infrastructure management costs.

Cross-Training Staff

• Issue: Knowledge silos can lead to inefficiencies and higher costs.
• Solution: Ensure multiple team members are trained on critical systems to avoid knowledge silos.

Automate Repetitive Tasks

• Issue: Manual tasks can be time-consuming and prone to errors.
• Solution: Implement automation for tasks like user provisioning to save time and reduce errors.

Real-World Examples

For practical insights and detailed examples, check out our blog and YouTube channel:

• Blog: How to Reduce Azure Costs with Reserved Instances
• YouTube Channel: LANet Ltd YouTube Channel

Conclusion

Following these strategies can significantly reduce your Azure spending while maintaining a secure and efficient cloud environment.

Check out our full webinar and additional resources on our website for more detailed insights.