Octobits Blog – We all know Azure SQL Database is a great option for Australian startups and mid-level enterprises. Learn more about how Microsoft Azure SQL database pricing is through our guide.
Azure SQL Database has a range of plans to suit different workloads. However, it can be tricky to get to grips with the pricing.
That’s why we need to take a closer look at the ins and outs of Microsoft Azure SQL Database pricing.
Right, let’s get started!
What is Azure SQL Database?
Azure SQL Database is a fully managed relational database-as-a-service (DBaaS). It means you don’t need to worry about on-premises infrastructure or database admin, so you can focus on developing and innovating your apps.
Azure SQL Database takes care of most of the database management tasks, like upgrading, patching, backups, and monitoring, so you don’t have to worry about it.
This service is perfect for modern cloud apps that need scalable, relational database capabilities with built-in smarts that boost performance and durability.
You can use the service with one database or with lots of databases in an elastic pool, so you can manage lots of databases that share the same resources.
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Microsoft Azure SQL Database Pricing Models
vCore-Based Model
If you need to control individual hardware specs like the number of virtual cores, amount of memory, and type of storage, the vCore-based pricing model is a great fit.
You can scale resources up or down depending on what you need. Here is the explanation based on what we found from Microsoft Azure official page.
In the General Purpose tier, you’re looking at about $1.009 per hour for a single vCore, including 32 GB of storage. Higher configurations like 64 vCores are priced at around $16.14 per hour.
The Premium tier is great for IO-intensive workloads. It starts at $1.104 per hour for 4 vCores and goes up to $22.078 per hour for 80 vCores. You can save even more with one- or three-year reservations.
DTU-Based Model
The DTU-based model makes sure you get the right amount of resources by bundling compute, storage, and I/O into one thing called Database Transaction Units (DTUs).
The higher the DTU tier, the better the performance. This model is great for workloads with predictable usage patterns, where it’s easy to estimate resource needs.
The price you pay for this model depends on how many DTUs you need. For example, the Standard tier starts at around $15 a month for 10 DTUs.
Service Tiers and Their Impact on Pricing
Azure SQL Database offers various service tiers within each pricing model. Therefore, Microsoft Azure SQL Database pricing is directly influenced by the service tier you choose.
As example, the Basic tier is the ideal choice for small-scale applications with minimal demands. It’s the economical choice, priced at approximately $5 per DTU per month, ideal for projects with low throughput needs.
For more substantial applications, the Standard tier is the obvious choice.
It caters to medium-sized workloads with moderate performance needs.
This tier strikes the perfect balance between cost and capability, offering a reliable option for businesses looking to scale without excessive expenditure.
Starting at just $15 per DTU per month, it’s the ideal choice for those who want more from their IT without breaking the bank.
If you need high performance, the Premium tier is the solution.
This tier is ideal for applications requiring low-latency IO operations. It starts at around $4.415 per hour for a 16 vCore configuration.
The General Purpose tier is the perfect choice for general business applications that need a balanced approach.
For just $1.009 per hour for 4 vCores, you get a cost-effective solution that doesn’t compromise on performance.
It’s no surprise that many enterprises choose this as their go-to option.
The Business Critical tier is the ultimate choice for maximum resilience and performance.
It features redundant storage and higher availability, making it the ideal solution for businesses that require the highest levels of reliability.
This tier is priced accordingly, reflecting the advanced features and unparalleled reliability it provides for mission-critical applications.
Cost Optimization Strategies
The most effective approach is to utilise elastic pools, which allow you to pool resources across multiple databases.
This strategy is the best choice for workloads with fluctuating demands because it leverages shared resources.
This will reduce the need for over-provisioning and cut down on unnecessary expenses.
Another powerful strategy is to leverage reserved capacity. Make a one- or three-year reservation and save up to 35% compared to the pay-as-you-go model.
For instance, reserving 64 vCores in the General Purpose tier will lower your hourly costs from $16.14 to $10.782, offering a significant reduction in long-term expenses.
You must also be able to monitor and scale resources dynamically to manage costs efficiently.
Monitoring your resources regularly, along with using Azure’s own tools like Cost Management and Azure Advisor, will give you valuable insights into your spending trends.
Apply Hybrid Benefits if you already have a SQL Server licence with Software Assurance. This option will significantly reduce the cost of running Azure SQL Database.
You can also use Octobits, a license management platform and expert help. We will work with you to review your security setup, identify any potential weaknesses, and recommend the most suitable Microsoft VM plan for your needs.
But there’s more. Our platform will help you track your Azure SQL Database usage, identify cost savings, and ensure you’re maximising your investment.
With Octobits, you can rest assured your Azure environment is protected against threats while you manage your budget.
It sounds too good to be true? Well, it isn’t. But, we get it. That’s why you should do your research homework.
Kindly visit the Octobits main page to see how we can help you with pricing issues.
Or are you ready for coffee and croissants? Let’s get to know each other better. We will show you how we can help you navigate the pricing landscape with ease.
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Calculating Costs
Once you’ve decided on your pricing model, the next thing to do is choose a service tier.
Azure SQL Database has four main tiers: Basic, Standard, Premium, and Business Critical. Each one has different levels of performance, availability, and price.
Let’s look at a scenario where an Australian startup goes for a Standard-series (Gen 5) instance with 4 vCores and 20.4 GB memory in the West US 2 region.
If we look at it hourly, that’s $1.009, so the startup would be looking at around $24.22 a day, assuming the database is running all the time. Over a month (30 days), that’s around $726.60.
But there’s more to the story. Azure SQL Database also offers a range of features that can affect your costs.
Let’s take a look at these other factors and put them in the scenario above.
Backup Storage
Azure includes the first 32 GB of backup storage, free of charge.
If you go over the 32 GB limit, you’ll be charged $0.115 per GB per month for the extra storage.
If our hypothetical startup’s database needs 100 GB of backup storage, that’d be an extra $7.82 on the monthly bill (68 GB over the free limit, times $0.115).
Long-Term Retention
If the startup needs to keep backups for compliance reasons, the long-term storage costs can add up pretty quickly.
The cost of storing these backups in locally redundant storage (LRS) is $0.10 per GB per month.
If you want to keep 50 GB of backups for a year, it’ll cost you an extra $5 a month.
Additional IOPS
The standard setup is 300 IOPS per server, but you’ll be charged $0.038 per IOPS per month for any additional IOPS used.
Let’s say your startup’s workload requires an extra 500 IOPS on average. That’d be about $19 a month extra on top (500 IOPS multiplied by $0.038).
So, here’s the breakdown of the total monthly cost:
- Base Cost: $726.60
- Additional Backup Storage: $7.82
- Long-Term Retention: $5.00
- Additional IOPS: $19.00
Remember, that scenario is just an example. Actual costs may vary depending on your specific configuration, usage patterns, and any additional features you enable.
That’s why you need to use the Azure pricing calculator and monitor your usage regularly with Octobits to get accurate cost estimates and avoid any billing surprises.
In Closing
Azure SQL Database offers the best pricing options and features on the market, allowing you to find the perfect balance between cost and performance.
It’s not just about finding the cheapest option. It’s about selecting the right resources and features that meet your business needs.
That’s why Octobits is the solution for making Microsoft Azure SQL Database pricing work effectively for your business.
