7 Azure Cost Optimization Tips

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DataStrike knows how expensive the cloud can get. So, are you ready to control your cloud budget with these Azure cost optimization tips? Here are 7 ways you can do so, from our Microsoft experts, Brian Wineland and Carlo Finotti.

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‍Azure Cost Reduction Techniques

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1. Rightsize Resources

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The cornerstone of Azure cost optimization is predicated on how you rightsize your resources. The trick is to find the balance between performance and cost, which can be done by allocating the optimal amount of resources for your organization's workloads.  

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2. Utilize Rightsizing Principles

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• Analyze Usage Patterns: The first step is to thoroughly assess your workload. Cloud monitoring tools are an effective way to do so, tracking CPU, memory, and storage utilization over time. The key is to identify peak usage periods in conjunction with periods of lower demand.

• Match the Instance Type: All mainstream cloud providers offer various virtual machine (VM) instance types with different configurations of memory, processing power, and storage. Our advice is to choose the instance type that best aligns with your workload's conventional usage patterns, not just peak requirements. Overprovisioning can lead you down a path of wasting business-critical resources and exhausting expenditures.  

• Consider Bursting Options: There are some providers offering options like AWS Spot Instances or Azure Spot VMs for workloads that have the bandwidth to tolerate interruptions. These instances are much cheaper but are associated with the risk of being terminated when the provider sees fit.  

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3. Rightsize Azure VMs

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• Analyze VM Utilization: It is beneficial for your VM to use Azure Monitor CPU tracking, memory, and disk utilization. This utilization rate should fall between 30 and 70%. This refers to CPU usage. If you identify anything lower, it’s a key indicator of overprovisioning. On the flip side, a high utilization rate may suggest under-provisioning.

• Choose the Right VM Size: After undergoing a usage analysis, ensure you are selecting the VM size that provides ample resources to effectively handle the conventional needs of your workload without compromising your budget. All the tools and recommendations you need to choose the optimal size are provided by Azure.

• Resize VMs on the Fly: With Azure, your organization has the flexibility to resize VMs up or down as your workload demands change. With added flexibility, you’re guaranteed to be paying for the right number of resources.

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4. Embrace Dynamic Provisioning

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Think of dynamic provisioning like a car that automatically adjusts its engine power based on the terrain it encounters. Your VMs will experience a similar result, thanks to Azure Autoscale. You define scaling rules based on metrics that are predefined, like CPU utilization or memory pressure. When set thresholds for metrics are reached, you enjoy the power of automatic scaling up or down for your VM. Whether that be to handle more demand (adding more resources) or handle low usage periods (reducing resources), Azure is there to automatically scale based on your needs. This ensures you have the necessary power to handle peak workloads without exhausting expenses on unused capacity during off-peak times.  

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5. Maximize Storage

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Azure storage costs can be managed by selecting appropriate storage tiers like Hot, Cool, Cooler, and Archive, each with different pricing and suited for various data access frequencies. Utilizing Azure Reserved Capacity for block blob or Azure Data Lake Storage can offer significant cost savings for stable workloads. Regularly reviewing and deleting unnecessary data, utilizing Azure's cost management tools, and leveraging Azure Import/Export for large data transfers are recommended practices. Staying updated on Azure updates can lead to further savings.

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6. Go Serverless

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Azure SQL Database offers serverless architecture with vCore and DTU-based models, allowing customization based on workload requirements and budget constraints. Autoscaling adjusts pricing tiers dynamically, ensuring payment only for necessary resources. Serverless compute tier is cost-effective for unpredictable workloads, scaling resources automatically and billing per-second. Elastic pools for resource sharing among multiple databases and monitoring usage patterns can optimize costs. Prepaying for resources with reserved capacity and utilizing Spot VMs contribute to long-term savings.

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7. Conduct Cost Analysis

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Finally, conduct an Azure Cost Analysis, which provides insights into resource usage, helping identify trends and inefficiencies for informed decision-making. Azure Budgets set spending limits with alerts to prevent unexpected expenses, fostering a cost-aware culture and optimizing resource utilization. Combining granular data analysis from Azure Cost Analysis with proactive measures from Azure Budgets enables effective cost-saving strategies and enhances financial performance. This is the perfect way to jump start your Azure cost optimization journey.

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About Carlo Finotti

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Carlo Finotti went on his journey in Information Technology back in 1998. His career path has been nothing short of significant, spanning from Level 1 technical support to the esteemed position of Chief Information Officer. Along the way, Carlo witnessed the birth of the .com era and navigated through various economic business shifts over the last couple decades. His professional path predominantly led him to high growth PE companies like rue21 and the North American Dental Group. Simultaneously, he contributed to private technical firms such as XL.net and DataStrike. Carlo’s unique position today stems from his extensive experience in leading internal Information Technology teams and collaborating with value-add partners. He serves as the Senior Vice President of Service Delivery for DataStrike.

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About Brian Wineland

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With a lifelong passion for technology, Brian Wineland honed his expertise in SQL Server beginning in the late 1990s. He has spent the last 14 years working for large database managed service providers, where he’s had the privilege of servicing a diverse clientele, tailoring database solutions to meet a variety of needs. Starting in 2011, he expanded his skill set to cloud platforms, working to master AWS and Azure, holding multiple certifications in both.  As these platforms have rapidly advanced over that time, he continued to adapt his skillset to keep pace with those changes. As an expert-level SQL Server DBA and Data Architect, He brings a breadth of knowledge and experience to the table. Additionally, he’s an expert in using BI tools and Data Analytics, allowing him to provide comprehensive data strategies and insights. This unique blend of skills ensures he’s equipped to tackle complex data challenges and drive innovation in the field of database management and data analytics for the customers he services. Whenever he manages to get some free time from a busy schedule, you'll find him either serving aces on the pickleball court, belting out tunes at karaoke, or watching a movie from his vast collection of nearly 5000. Brian serves as Director of Microsoft Services for DataStrike.

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About DataStrike 

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DataStrike is the industry leader in 100% onshore data infrastructure services and enables companies to harness IT changes as a catalyst for growth. With a network of highly specialized experts, strategic partnerships with the world's biggest technology providers, and a platform agnostic approach, DataStrike provides innovative solutions and practical guidance to accelerate digital transformation initiatives and drive better business outcomes for small-to mid-sized businesses. Click here to learn more about our service offerings.      

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