Octobits Blog – The Microsoft Azure pricing calculator is a handy tool for users to get a rough idea of what they’ll be spending based on how much they think they’ll use it, which makes it easier to plan and budget effectively.
In today’s world, where we cannot spend money stupidly, we need to understand every dollar we spend on cloud computing.
So, let’s talk about how this calculator can help you plan for cloud expenses. It can help businesses avoid unexpected costs and make informed financial decisions.
But, before too far, you can check “Drowning in CRM Options? Microsoft 365 Pricing Can Be Your Budget BFF,” for the detailed price of Microsoft 365.
How to Calculate Azure Consumption
Azure offers a variety of services, each with its own pricing model. These can include factors like compute hours, storage usage, data transfer, and more.
So, here are a few structured approaches we can use to get an accurate estimate of the cost.
Service Selection
The first step is figuring out which Azure services you need. This can include anything from virtual machines (VMs) and databases to storage solutions and networking components.
Please be aware how each service has its own pricing structure and factors that affect the cost.
Resource Configuration
Once you’ve picked the right services for you, set them up based on what you need.
For instance, when you’re picking a VM, you’ll need to decide on the right region, instance size, operating system, and any extra features like disk type.
Each of these configurations affects the cost in a different way. For example, running a D2 v3 VM in the East US region for 730 hours (a full month) costs about $153.12 at pay-as-you-go rates.
Usage Estimation
Just give us an idea of how much you’ll be using each service each month. For VMs, this includes how long the VM will run for.
For storage services, it’s about the amount of data stored and the number of transactions.
Being on the money with your usage estimation is key because it directly affects your cost calculation.
For instance, if you cut the VM usage in half—from 730 hours to 200 hours a month—the estimated cost will change along with it.
Pricing Plans
You can choose from different pricing options, such as pay-as-you-go, reserved instances, or savings plans. These plans can really affect your costs.
For example, reserved instances can save you up to 72% over pay-as-you-go prices if you sign up for a one- or three-year term.
Azure also has flexible pricing models that let you scale resources up or down based on demand, so you only pay for what you use.
Additional Costs
Think about any extra costs, like data transfer charges, software licenses, or support plans.
Just to give you an idea, data transfer costs can vary depending on how much data you move in and out of Azure data centers.
Also, you might have to pay more if you use Application Insights and Azure Monitor for monitoring and telemetry.
For reference about how to avoid costly cloud spending, kindly read “Worried About Hidden Costs in Microsoft Azure pricing? We’ve Been There.”
How to Use the Microsoft Azure Pricing Calculator
When you start, just go to the Azure Pricing Calculator and start with an empty estimate.
The interface is simple and lets you either look through the list of services or search for a specific Azure service.
Once you’ve found the service you need, like a virtual machine (VM), you just add it to your estimate. You can tweak different settings for each service.
For instance, when you’re working with a VM, you’ll choose where you want it hosted, decide on the instance size, pick the operating system, and add any extra features like disk type.
Just a heads-up: Each of these choices affects the price, so it’s important to be as detailed as possible when you’re putting together your estimate.
So, be as specific as you can and adjust to suit your situation, needs, and goals.
Once you’ve added the products, the next thing to do is tweak the default configurations to match your expected usage.
Let’s say you want to run a VM for 200 hours a month instead of the default 730 hours.
You just update the configuration to reflect the change, and the calculator automatically adjusts the estimate to show the new cost.
The calculator then breaks down the costs into upfront and monthly expenses, giving you a clear picture of your financial commitments.
For instance, if you deploy a Windows VM, the calculator will break down the costs for you, showing you what you’ll pay for the chosen region, instance type, and usage hours.
It’ll also point out ways you can save money, like reserved instances or hybrid benefits, which can really cut down on the overall cost.
You can save your estimates for later or share them with your team via a unique link. This feature is great for planning and budget talks because it makes sure everyone involved has the same financial info.
Tips for Effective Cost Estimation
One of the best ways to cut your Azure costs is to use reserved instances. If you sign up for a one-year or three-year plan, you’ll save a lot more than you would if you just pay as you go.
For instance, companies can save up to 72% on reserved instances.
You can also save even more by using Azure Hybrid Benefits.
This feature lets you use your existing on-premises Windows Server and SQL Server licenses with Software Assurance on Azure. You can even extend this benefit to Linux and Azure Stack HCI.
And it’s always a good idea to regularly review and adjust your resources to make sure you’re not paying for idle resources.
Azure Advisor gives you tips on how to save money by spotting resources that aren’t being used much.
You need to keep an eye on your Azure spending and make adjustments when needed. Tools like Azure Cost Management help you keep track of and manage your expenses.
They give you insights into your spending patterns and ways to cut costs.
And please, make sure you choose the right support plan for your needs. That way, you can avoid any unexpected costs.
Azure has a range of support plans, from Basic to Professional Direct, to suit different levels of support and usage requirements.
One last thing: optimizing your cloud investments isn’t just about the infrastructure. Your SaaS applications play a pivotal role in your overall Azure ecosystem.
That’s why we at Octobits offer seamless integration with Azure. Yes, Octobits brings you a comprehensive SaaS management platform.
By connecting with Azure, Octobits gives you a complete view of your SaaS setup.
The main goal is you can keep track of how you’re using SaaS, ensure you’re getting the most out of your licenses, and spot ways to save money.
This lets you align your SaaS investments with your broader Azure strategy.
Now, kindly visit the Octobits website to see how we can adjust and bring the tools, insights, and automation you need to drive growth, efficiency, and innovation.
In Closing
For sure, when you stick to best practices and use tools like Octobits, you can make cloud spending more efficient, avoid unexpected costs, and keep your finances in check.
This approach helps you align your cloud investments with your budget goals, which is key to the success of your cloud initiatives.
The Microsoft Azure Pricing Calculator is a key part of this plan. It gives you the transparency and control you need to make sense of the different costs involved in cloud computing.
