Octobits Blog – Microsoft Azure pricing is a pretty complex topic ‒ it can be tough to figure out. As the top cloud computing platform, Azure offers a wide range of services with different pricing models.
Over the years, companies have been increasingly turning to Azure to use its solid infrastructure, which can support everything from simple web apps to complex machine learning models.
So, is it right that Azure’s benefits go beyond cost savings? Let’s break it down.
Understanding Microsoft Azure Pricing
Pay-as-you-go Model
Azure’s pay-as-you-go (PAYG) model is a flexible pricing structure that lets businesses only pay for the resources they use, so there’s no need to make upfront investments in hardware.
This model is great for startups and small businesses that need to be careful with their cash flow.
For example, a company can scale its computing resources up or down based on demand, so it only pays for what it needs at any given time.
This flexibility helps you align costs with actual usage, which can maximize cost efficiency and minimize waste.
For instance, if a company runs an A7 eight-core Azure virtual machine for four hours, they’d pay $5.28. This way, costs are tightly controlled based on usage.
Reserved Instances and Commitment Plans
If you’ve got a steady workload, Azure’s reserved instances are a great way to save money.
If you sign up for a one- or three-year plan, you can save up to 72% compared to PAYG prices.
This model is great for companies with apps that don’t change much and need to perform consistently over a long period.
For instance, a three-year reserved instance for a D8s v4 Windows Server VM in the US West 2 Region costs a lot less than its PAYG equivalent, which makes it a great choice for reducing the total cost of ownership on Microsoft Azure.
Free Tier and Trial Options
Azure’s free tier and trial options allow businesses to explore its services without any financial commitment.
New users receive a $200 credit for the first 30 days and access to popular services like virtual machines, storage, and databases for free.
This helps businesses experiment with Azure’s offerings and understand their potential before making any significant investments.
For example, services like Azure Functions and Azure DevTest Labs provide substantial free usage amounts, making it easier for businesses to test and develop applications without immediate costs.
Factors Affecting Azure Pricing
There are a few things that affect the price of Azure, like the type of service, where the service is hosted, and how much customer support you need.
For instance, prices for virtual machines change depending on the instance type, operating system, and whether the instance is part of a reserved or on-demand plan.
Also, you might have to pay for data transfer, storage, and software licenses. Tools like the Azure Pricing Calculator can help businesses figure out and manage these costs.
For a reference on Dynamics 365 CRM, you can read “Drowning in CRM Options? Microsoft 365 Pricing Can Be Your Budget BFF.”
Components of Azure Pricing
So, now, what is the current cost of an Azure subscription? Actually, there is no single answer. Why?
The cost of an Azure subscription varies significantly depending on the services and resources you use.
Azure offers a wide range of services, each with its own pricing structure that can be customized based on the user’s needs. Let’s see the several fundamental factors.
Virtual Machines
Azure offers a diverse range of virtual machines (VMs) tailored to various business needs.
The pricing of these VMs is influenced by factors such as the number of cores, memory size, and storage options.
For example, D-series VMs are designed for general-purpose workloads, featuring a balance of compute, memory, and temporary storage.
On the other hand, F-series VMs are optimized for compute-intensive applications, offering higher CPU-to-memory ratios, ideal for workloads like batch processing and gaming servers.
Storage
Azure has got all kinds of storage solutions, including Blob Storage, Disk Storage, and File Storage.
The price of these services depends on things like the redundancy options you choose—Local Redundant Storage (LRS), Zone Redundant Storage (ZRS), Geo-Redundant Storage (GRS), and Read-Access Geo-Redundant Storage (RA-GRS)—and how you access them, like with hot, cool, and archive tiers.
For example, the price of Azure Blob Storage depends on the redundancy and tier you choose. Hot-tier storage costs more because it’s more accessible than cool and archive tiers.
Networking
Azure’s networking services, like Virtual Network, Load Balancer, and ExpressRoute, help businesses build secure and high-performance network infrastructures.
The price for these services depends on how much data you transfer, the number of endpoints you use, and how long you use them for.
For instance, the cost for using a load balancer is based on the number of rulesets, the number of hours used, and the amount of data processed in gigabytes.
ExpressRoute, which gives you a private connection to Azure, is priced based on the bandwidth and location.
Databases
Azure has got you covered when it comes to managed database services, with options like SQL Database, Cosmos DB, and PostgreSQL.
The price you pay for these services depends on things like how much computing power you need, how much storage space you want, and how much redundancy you require.
For example, the price of Azure SQL Database depends on which service tier you choose (Basic, Standard, or Premium), the number of vCores, and the amount of storage you need.
Cosmos DB is a globally distributed, multi-model database service. You’ll be charged based on how much data you use, how much storage you need, and how many regions you want to replicate.
Networking
Azure’s networking services, like Virtual Network, Load Balancer, and ExpressRoute, help businesses build secure and high-performance network infrastructures.
The price for these services depends on how much data you transfer, the number of endpoints you use, and how long you use them for.
For instance, the cost for using a load balancer is based on the number of rulesets, the number of hours used, and the amount of data processed in gigabytes.
ExpressRoute, which gives you a private connection to Azure, is priced based on the bandwidth and location.
Databases
Azure has got you covered when it comes to managed database services, with options like SQL Database, Cosmos DB, and PostgreSQL.
The price you pay for these services depends on things like how much computing power you need, how much storage space you want, and how much redundancy you require.
For example, the price of Azure SQL Database depends on which service tier you choose (Basic, Standard, or Premium), the number of vCores, and the amount of storage you need.
Cosmos DB is a globally distributed, multi-model database service. You’ll be charged based on how much data you use, how much storage you need, and how many regions you want to replicate.
Analytics and Big Data
If you’re looking to handle big data and analytics, Azure has got you covered with services like Azure Synapse Analytics, HDInsight, and Data Lake Storage.
You pay for these services based on how many compute hours you use, how much data you process, and how much storage you use.
Azure Synapse Analytics, for instance, charges you for the data warehousing units (DWUs) you use, while HDInsight, a cloud distribution of Hadoop components, is priced based on the cluster configuration and how long you use it for.
AI and Machine Learning
Azure’s AI and machine learning services, including Azure Machine Learning, Cognitive Services, and Bot Services, are priced based on the number of API calls, training hours, and model deployments.
For example, Azure Machine Learning charges for the compute resources used to train and infer models.
Cognitive Services, which provides prebuilt AI models for tasks such as text analysis and image recognition, is billed based on the number of transactions.
For further information on email hosting, please refer to “Guide to Microsoft 365 Email Hosting Pricing for Your Smart Spending.”
Why is Microsoft Azure so Expensive?
Azure’s pricing may seem high compared to other cloud providers, but it reflects the comprehensive features, security, and reliability it offers.
The cost reflects Azure’s extensive global infrastructure, which includes data centers in multiple geographies, providing redundancy and compliance with local regulations.
Azure also invests heavily in continuous innovation and integration capabilities. In the past year, Azure has introduced more than 1,000 new features, focusing on areas such as AI, machine learning, and virtualization.
Another cost driver is Azure’s commitment to security and compliance.
Microsoft invests more than $1 billion annually in cybersecurity research and employs more than 3,500 security professionals to protect data.
Azure offers the most comprehensive compliance coverage among cloud providers, with more than 90 certifications, ensuring that organizations can easily meet regulatory requirements.
For more details on Azure pricing and some of the issues behind it, we recommend you visit the Microsoft Azure page here.
Managing Azure Costs
Effectively managing Azure costs requires the use of tools such as Azure Cost Management and the Pricing Calculator.
These tools enable organizations to monitor usage, set budgets, and forecast future spending.
Azure Cost Management provides detailed insight into cloud spending, allowing organizations to identify cost-saving opportunities and optimize usage.
Leveraging Azure’s cost-saving options, such as reserved instances and spot pricing, can also significantly reduce spending.
Reserved instances allow organizations to commit to one- or three-year plans, providing savings of up to 72% over pay-as-you-go pricing.
Spot pricing provides additional savings by utilizing unused compute capacity at a lower cost, which is ideal for non-critical workloads that can tolerate interruption.
You can also use Octobits as a license management platform that integrates with Azure.
In short, we at Octobits offer all the tools you need to monitor and manage your SaaS applications, increase productivity, and stay current with industry standards.
In fact, our goal is to become your support system, from choosing the right SaaS to managing it and making it work for you.
This means we are your supporting system in your SaaS management to drive growth and efficiency.
To learn more about how Octobits can help you manage your SaaS solutions, kindly visit Octobits.io.
In Closing
Microsoft Azure offers different pricing models to meet different needs, allowing organizations to pay only for what they use.
With a comprehensive suite of services and platforms like Octobits to help optimize costs, you can navigate the cloud journey and get the most out of Microsoft Azure pricing.
