Octobits Blog – The flexibility and power of Azure cloud computing present a challenge in understanding and managing the associated costs. How much does Microsoft Azure monthly cost?
As organizations increasingly adopt cloud services, the management and estimation of monthly cloud costs have become critical.
Accurately forecasting monthly Microsoft Azure costs is essential to facilitate effective budgeting, financial planning, and cost efficiency.
So, let’s talk about the monthly cost of Azure here.
Is Azure Billed Monthly?
Microsoft Azure services are billed on a monthly basis using a pay-as-you-go model.
This approach provides flexibility and allows organizations to scale their usage as needed.
Monthly billing means you are only charged for the exact amount of resources you use during that period.
Azure also offers alternative pricing models, such as reserved instances and spot pricing, which can help reduce costs through long-term commitments or by taking advantage of lower prices for unused capacity.
For reference about AWS and Azure, please refer to “Microsoft Azure Cloud Services Cost Puzzle: Find the Missing Piece & Tips.”
Components of the Azure Cloud Solution
Azure’s cost structure is made up of a few key parts which all contribute to the overall monthly expense.
Compute
This includes the cost of virtual machines (VMs), Azure Kubernetes Service (AKS), and other compute resources.
Prices change depending on which instance type you choose, where you’re based, and how long you need it for.
For instance, a standard D2s v3 VM in the Eastern US region costs about $0.096 an hour.
Storage
When we talk about storage costs, we’re talking about Azure Blob Storage, Azure Files, and disk storage.
The costs depend on which storage tier you choose (hot, cool, or archive) and whether you want to keep a backup.
For instance, storing 1 TB of data in the hot tier costs about $20 a month, while the cool tier costs about $10 a month.
Networking
Charges for data transfer, load balancing, and VPN gateways fall into this category.
You won’t be charged for transferring data within the same region, but you will be for data transfers between regions.
For instance, transferring data from Azure to another region can cost between $0.01 and $0.087 per GB.
Databases
Managed databases like Azure SQL Database, Cosmos DB, and Azure Database for PostgreSQL are priced based on how much compute power you need, how much storage you want, and how many transactions you’re doing.
For instance, a single Azure SQL Database with 100 DTUs and 250 GB of storage will set you back about $465 a month.
Other Services
This includes AI and machine learning services, IoT services, and more.
Each service has its own pricing structure. For example, you can get Azure Machine Learning for about $2.80 an hour for a standard computer instance.
Let’s say a mid-sized company uses Azure for its operations.
The company might set up ten standard B2ms VMs for its apps, store 5 TB of data in the cool tier, use 100 GB of outbound data transfer, and maintain an Azure SQL Database with 200 DTUs.
So, the estimated monthly cost would be:
- Compute: $0.05 per hour per VM x 10 VMs x 720 hours = $360
- Storage: $10 per TB per month x 5 TB = $50
- Networking: $0.05 per GB x 100 GB = $5
- Database: $930 per month for 200 DTUs
- This results in a total estimated monthly cost of $1,345.
Please be aware—the number above is for illustrative purposes only. So, you really need to adjust the number to fit your needs, goals, and the components above.
Breaking Down The Costs
To manage Azure costs effectively, it’s key to know what you’re spending and how to categorize it. Let’s take a closer look at the costs.
The first thing to do is to provision and rightsize resources. This means making sure that virtual machines (VMs) and other services are the right size for the work they do.
If you overprovision resources, you’ll end up spending more than you need to. And if you underprovision them, you might not get the performance you need.
Rightsizing tools can help you analyze how you’re using your resources and suggest the best way to configure them.
Keeping an eye on your cloud costs is key. Using cost management tools helps you monitor, allocate, and optimize your cloud spending with transparency.
Azure Cost Management and Billing tools give you a clear picture of your spending patterns and show you where you can save money.
Using reserved instances can save you a lot of money compared to pay-as-you-go pricing.
If you commit to one- or three-year reserved instances, you can save up to 72% on certain workloads.
Auto-scaling is a great way to make sure resources adjust automatically based on demand, which helps to optimize usage and cost.
This is especially useful for services with fluctuating workloads. It ensures that resources are scaled up during peak times and scaled down when demand decreases, preventing unnecessary expenditure.
How to enable Cost Management in Azure? Kindly read the answer in “Your Microsoft Azure Cost Management: Power You Didn’t Know You Had.”
What Factors Affect Azure Pricing?
The region is a big factor in pricing because there are differences in infrastructure and operational costs from one region to the next.
For instance, running a standard B2MS VM in the East US region costs about $0.046 per hour, while the same VM costs $0.048 per hour in the West Europe region.
Service type also affects pricing, as different services have different pricing models and rates.
How much you use it, like how much data you process, store, and transfer, affects the overall cost.
High data transfer volumes can really add up, especially for inter-region data transfers.
Service Level Agreements (SLAs) that offer better availability and performance often cost more.
As an example, if you go for a higher SLA with Azure SQL Database, you’ll pay more but get better performance and uptime.
Support plans are another thing to think about when it comes to costs. Premium support plans give you better service and faster responses, but they cost more each month.
Organizations have to figure out how to balance their need for support with the costs to manage their budget effectively.
We also strongly recommend you read Microsoft’s Azure Monitor costs and usage article for a more detailed perspective.
How to Controlling Your Azure Costs with Effective
As we’ve seen, keeping an eye on your Microsoft Azure spending and making smart decisions about it takes some effort.
But when you add in all the SaaS apps you use with Azure (like collaboration tools, productivity suites, and special software), managing the overall cloud cost picture gets even more complicated.
Which is why you can start using Octobits as a SaaS management platform.
Octobits isn’t just for Azure, but it’s a great tool for managing all your cloud costs.
By integrating Octobits into your Azure cost management strategy, you create a powerful synergy.
Octobits works in the background, keeping an eye on how you use your SaaS and suggesting ways you can save money.
It makes sure you’re getting the most out of your software investments by showing you which licenses you’re not using and suggesting cheaper alternatives.
So, kindly visit Octobits website to learn more about how we can be your supporting system to streamline SaaS management, reduce unnecessary spending, and make more informed decisions about your software investments.
In Closing
First, you need a solid understanding of what services you’re actually using and how they’re impacting your bill.
From there, it’s a matter of making smart choices: right-sizing resources, taking advantage of cost-saving options (such as reserved instances), and maybe even using a tool like Octobits to help you keep an eye on things.
By taking these steps, you’re not just managing costs, you’re making the most of your Microsoft Azure monthly cost investment.
