Microsoft Azure Stack Pricing: Types & How To Optimize Cost

Microsoft Azure stack pricing

Octobits Blog – Hybrid cloud is becoming a pretty attractive option for IT pros in Australia and the Asia-Pacific region.

That’s why Microsoft Azure Stack lets you bring Azura’s capabilities right into your own data centre.

Given this, it could be useful to understand the Microsoft Azure Stack pricing structure better. So you can plan your budgets effectively and make the right choices when it comes to costs.

What is Microsoft Azure Stack?

Microsoft Azure Stack is a set of products that let you use Azure services and capabilities in any environment, so you get a consistent hybrid cloud experience.

This means you can run Azure services in your data centres with the same tools and experiences as the public Azure cloud.

The Azure Stack range includes three main products: Azure Stack Hub, Azure Stack HCI (Hyperconverged Infrastructure), and Azure Stack Edge.

Azure Stack Hub

Azure Stack Hub is a complete system you can use straight away.

It brings together software and hardware that’s been checked and approved, and it offers Infrastructure as a Service (IaaS) and Platform as a Service (PaaS).

This setup lets businesses run cloud apps on their own servers, so they’re consistent with the public Azure services.

Azure Stack Hub is great for scenarios where you need to keep your data and comply with regulations.

Azure Stack HCI

Azure Stack HCI is a hyperconverged infrastructure solution that lets organisations run virtualised workloads on-site while using Azure for cloud-based services.

This solution is perfect for businesses looking to bring their data centres up to speed with scalable virtualisation and storage solutions.

It’s great for common use cases like virtual desktop infrastructure, high-performance SQL Server, and remote branch office deployments.

For reference, please refer toIs Microsoft Azure Virtual Desktop Pricing Giving You Headaches?

Azure Stack Edge

Azure Stack Edge is a managed appliance with edge compute capabilities designed for AI and IoT applications.

It gives you real-time insights and analytics by processing data right where it’s needed.

This is a big plus for industries that need to process and analyse data quickly, like manufacturing and healthcare.

Having access to data right away can make a big difference to how things are done and the decisions that are made.

What is the Difference Between Azure and Azure Stack?

The primary difference between Azure and Azure Stack lies in their deployment models and use cases. 

Think of Azure as a vast, shared space in Microsoft’s sprawling data centres.

It’s a public cloud platform, meaning you access its services over the internet.

This suits businesses that value scalability, flexibility, and offloading infrastructure management to Microsoft.

Azure’s broad range of services covers everything from virtual machines and databases to machine learning and IoT.

Now, imagine bringing a piece of Azure into your own data centre.

That’s Azure Stack. It’s designed for organisations requiring a hybrid cloud approach.

This is essential when you need to keep data on-premises for compliance, low-latency applications, or scenarios where internet connectivity is unreliable.

Azure Stack gives you control over the hardware and operations, mirroring the Azure experience but within your environment.

Breakdown of Azure Stack Pricing

Azure Stack has a pretty complex pricing structure. The pricing plan reflects the different types of offerings it has.

Each component has its own pricing model, designed to fit its specific use case and deployment scenario.

Azure Stack Hub

Azure Stack Hub is the top of the line, offering the most complete Azure experience on-site. 

If you take a look at the Azure Stack Hub pricing page, you’ll see that there are two main pricing models: pay-as-you-go and capacity-based.

The pay-as-you-use model is based on how much you use, with virtual machines charged per vCPU per hour and storage billed per GB per month.

This model is great for businesses with different workloads, as it offers flexibility and cost efficiency. 

The other option is a capacity-based model, which involves a fixed annual subscription fee.

This model is great for disconnected environments where it’s not possible to metre continuously. This makes budgeting easier, but it’s less flexible than usage-based billing. 

Azure Stack HCI

Azure Stack HCI is a hyperconverged infrastructure solution that uses a simple per-core pricing model.

You just pay a monthly fee for each physical core on your on-premises servers.

Plus, including Windows Server licensing in the HCI subscription is a big plus for businesses that are part of the Microsoft ecosystem.

The Azure Hybrid Benefit can get you out of paying the Azure Stack HCI host service fee and Windows Server subscription for eligible customers, which is a great way to save money.

The standard price is $10 per physical core per month, but you can get this waived with the Azure Hybrid Benefit.

Azure Stack Edge

Azure Stack Edge is an edge computing appliance that you can access through a subscription.

The price depends on the model and what it can do, including the cost of renting the hardware, using the software, and getting support.

For example, the monthly subscription fee for the Azure Stack Edge Pro 2 with 32 vCPUs, 204 GB RAM, and 2 x NVIDIA A2 GPUs is $615.

This pricing covers all the services you need to operate the device efficiently.

This model makes Azure Stack Edge an affordable option for organisations looking to get started with edge computing without a big upfront investment.

Kindly readThe Real Value of Microsoft Azure OpenAI Pricing for Australian Business,” for a definitive reference on Azure OpenAI.

How to Optimise Costs for Azure Stack

The first thing you can do is make sure you’re not paying for more resources than you need.

We’ve all been there: it’s easy to overestimate your needs and end up paying for unused capacity.

So, It’s a good idea to regularly review how you’re using your resources and make adjustments as needed.

Azure Advisor is a great tool for this. It can spot underused resources and suggest ways to make them more efficient.

For instance, if you have a virtual machine running at 10% capacity, it might be worth downsizing to a smaller, more cost-effective option.

Another great tool for cutting costs is the Azure Hybrid Benefit.

If you have existing on-premises licences with Software Assurance, you can apply them to your Azure Stack workloads, significantly reducing your compute costs. 

The good news is you can save a lot on workloads with predictable usage patterns if you go for a reserved capacity plan.

By choosing to commit to either a one-year or three-year term, you can lock in discounted rates and avoid any fluctuations in on-demand pricing.

It’s like buying a season pass instead of individual tickets – you get a better deal if you know you’ll be using the service regularly.

At the end of the day, automation and management tools can be really useful for cutting costs.

Azure has a whole suite of tools that can automate all those boring routine tasks, make sure everyone sticks to the rules, and keep an eye on how much you’re spending.

For instance, you can use Azure Automation to schedule the start and stop of virtual machines, so they only run when you need them to.

How to Accelerate Your Azure Stack Journey

As you can see, the Azure Stack ecosystem is pretty powerful, but the choices and pricing structures can also be a bit overwhelming.

Adopting Azure Stack is just the first step.

Another level of task is figuring out the ins and outs of each component, choosing the best fit for your workloads, and then navigating the complexities of deployment and ongoing management.

The need to see the benefits of Azure Stack quickly adds another layer of complexity.

That’s why we at Octobits are giving you a subscription management platform to help you find your way.

Yes, you can use Octobits for free until December 2024.

With Octobits, you can make your way around the Azure Stack landscape with confidence. 

Octobits is the tools you need to make the right decisions, use your resources wisely, and avoid nasty surprises on your bill.

But Octobits is much more than just monitoring. Our platform uses predictive analytics to forecast future costs.

We’re well aware there are lots of marketing messages here that seem to promise a lot. So, we’d love it if you could take a look at how Octobits performs.

For the first step, kindly visit our Octobits main page to learn more about what we can do for you.

Or, we can grab a coffee (or tea) and have a discussion about the challenges you’re facing with Microsoft Azure Stack. 

In Closing

To succeed with Azure Stack, you must understand the different pricing structures and implement cost-saving measures.

That’s why having the right data-driven insights from Octobits is key to getting to grips with the ins and outs of Azure Stack.

This collaboration approach is the best way to get the optimal Microsoft Azure Stack pricing, which will unleash your business’s potential for growth and innovation.

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