Octobits Blog – Microsoft Azure is a top cloud service provider that offers a wide range of VMs to suit all kinds of computing needs.. So, what about the Microsoft Azure VM pricing?
That’s why it’s essential to know how much virtual machines (VMs) are going to cost, so you can manage your budget effectively and make sure you have the resources you need.
So, why are we still here? Let’s get into the nuts and bolts.
Types of Azure VMs
First of all, we have General Purpose VMs, which are designed to provide a balanced CPU-to-memory ratio.
This type is great for all kinds of apps, like testing and development, small to medium-sized databases, and web servers.
The D-series and B-series VMs are good examples of this.
The D-series VMs are known for their speedy processors and loads of memory, making them great for handling batch processing tasks and gaming servers.
Then there are the Compute Optimised VMs, which have a high CPU-to-memory ratio and are ideal for tasks that require more processing power than memory.
These include medium-traffic web servers, network appliances, batch processes, and application servers.
The F-series VMs are a great example. They’ve got powerful processors that can handle compute-intensive applications really well.
They’re also great for gaming servers and data analytics apps that need to crunch numbers fast.
Thirdly, we have Memory Optimised VMs for those who need a lot of memory.
This type is perfect for relational database servers, medium to large caches, and in-memory analytics.
The E-series and M-series VMs are great examples. The E-series is great for in-memory apps like SAP HANA, with a high memory-to-core ratio.
Next up are our Storage Optimized VMs, which are great for Big Data, SQL, and NoSQL databases thanks to their high disk throughput and input/output operations per second (IOPS).
The Lsv2-series is a great example of this category, offering high-performance local storage that is crucial for data-intensive applications.
You can also get GPU VMs for tasks that need a lot of graphics rendering and video editing, as well as model training and inferencing with deep learning.
The NV and NC series are the go-to for this category, offering solid GPU resources for tasks like virtual desktops and large-scale deep learning models.
Finally, we have High-Performance Compute (HPC) VMs, which are perfect for high-performance computing applications like risk modelling, geoseismic processing and scientific simulations.
The HB-series and HC-series VMs are great for workloads that need a lot of processing power and can’t wait around for complex operations to finish.
For reference on Azure, kindly read “Here’s How to Cancel Microsoft Azure Subscription Without the Drama.”
Pricing Models for Azure VMs
Azure VM pricing is based on a few different models to suit different financial and operational needs.
And yes, the pay-as-you-go model is the most flexible one, where you’re charged based on how much you use the VMs.
This model is great for unpredictable workloads because there are no long-term commitments.
You only pay for what you use, so it’s great for short-term or experimental projects.
Or, you can choose the reserved instances model that offers big discounts to customers who can commit to one-year or three-year terms.
This model is ideal for workloads that you can predict, where you can accurately forecast how much resource you’ll need.
The good news is you can save a lot of money. In fact, you can save up to 72% compared to pay-as-you-go pricing.
Azure Savings Plans are another way to cut costs. This model lets you agree on a fixed hourly rate for a set amount of vCPU usage across different VM types in a region.
Spot VMs let users make the most of any unused Azure capacity at a great discount.
This model is great for keeping costs down, but it does mean that your workload can be interrupted when Azure needs to reallocate resources.
Spot VMs are great for fault-tolerant and non-critical workloads, like batch processing jobs, development environments, and stateless apps.
If you’re a Visual Studio subscriber, you can get a discount on Dev/Test Pricing, which makes it a great option for development and testing environments.
This model includes monthly credits and lower rates, which helps development teams keep their costs down while they’re building and testing their applications.
Factors Influencing Azure VM Pricing
There are a few things that affect the cost of Azure Virtual Machines (VMs), which affects how businesses plan and optimise their cloud spending.
The first thing to think about is the type of VM you need. As we know, Azure offers a range of VM series for different workloads.
General Purpose VMs, like the D-series, have a good CPU-to-memory ratio, so they’re great for web servers and small databases.
On the other hand, Compute Optimized VMs like the F-series have a higher CPU-to-memory ratio, which is great for batch processing and application servers.
Memory Optimized VMs, like the E-series, are perfect for high-memory tasks like large databases and in-memory analytics.
Storage Optimized VMs, like the Lsv2-series, are all about high disk throughput for big data and SQL databases.
Finally, GPU VMs are great for heavy graphics rendering and deep learning applications.
Then there’s the matter of where the VM is deployed. That can have a big impact on pricing.
Regions with higher costs and demand will have higher VM prices.
For example, setting up a VM in the East US might cost less than in Thailand because of differences in data centre infrastructure and local costs.
Also, Windows VMs usually cost more than Linux VMs because of Microsoft licensing fees. This can make a big difference to overall costs, especially for businesses running lots of VMs.
The number of virtual CPUs (vCPUs) and the amount of RAM you allocate to a VM directly affect the price.
More vCPUs and RAM improve performance, but they also mean higher costs.
For instance, a VM with 8 vCPUs will cost more than one with 2 vCPUs because it has more computational power.
The type and size of attached storage, such as SSD or HDD, also affect the cost.
Azure managed disks offer different performance levels, so choosing between Standard or Premium SSDs can make a big difference to the total cost of the VM.
For info on Azure costs, kindly read “Confusion to Cloud Clarity: Journey to Microsoft Azure Subscription Types.”
Cost Optimization Strategies
If you know what your workload is going to be like, using Reserved Instances can save you a lot of money.
If you commit to a one-year or three-year term, you can get discounts of up to 72% compared to pay-as-you-go pricing.
Another way to cut costs is to use Spot VMs. These VMs make use of Azure’s spare capacity at discounted rates and are ideal for non-critical, interruptible workloads.
Even though there’s a risk of being evicted when Azure needs capacity, they offer a cost-effective solution for batch processing and development environments.
Azure Hybrid Benefit lets businesses use their existing on-premises licences again to save even more on Azure VMs.
This benefit applies to both Windows Server and SQL Server licences, which means you only pay for the VM compute costs.
Another way to cut costs is to automate VM operations during non-peak hours.
Tools like Azure Automation and Octobits let you set automatic start and stop schedules for VMs, so you only use resources when you need them, avoiding unnecessary costs.
Also, it’s a good idea to keep up with Microsoft’s official page, like Windows Virtual Machines Pricing here. The official page will always give you the full picture.
You can find out more about the big picture above from lots of different sources online, like the Octobits resources you’re reading now.
Does Stopping Azure VM Reduce Cost?
Yes, stopping an Azure VM can save you money, but how much you save depends on how you stop it.
Azure has two different VM states: “Stopped (Deallocated)” and “Stopped (Allocated)”. These have different billing implications.
When a VM is stopped (deallocated), it releases the lease on the underlying hardware.
In this state, you won’t be charged for the compute resources because the VM no longer has any reserved hardware.
This is the best way to cut costs because it means you won’t be paying for unused compute capacity.
On the other hand, if a VM is in the ‘Stopped (Allocated)’ state, it just means it’s powered off but still has the allocated hardware resources.
In this state, you’ll still be charged for the VM as if it’s running because Azure is reserving the underlying hardware for your use.
This state doesn’t save you any money on compute resources.
To make sure you don’t get charged for these resources, it’s important to deallocate the VM properly using the Azure portal, PowerShell commands, or the Azure CLI.
For instance, you can use the command ‘az vm deallocate’ to make sure the VM is deallocated and stops incurring compute charges.
How Octobits Can Be Your Azure Supporting System
Octobits offers a license and subscription management platform solution to streamline how you manage multiple Azure subscriptions and save you money.
With features like automated cost tracking, real-time monitoring, and predictive analytics, we are ready to be your supporting system to manage your Azure environments in an efficient way.
Octobits also gives you tailored recommendations and customisable alerts to help you stay within budget and make informed decisions about resource allocation.
Find out how Octobits can help you manage your Azure subscription better by visiting Octobits.
In Closing
It’s not just about picking the right VM type and size; you’ve also got to think about the pricing model.
You can also use Azure’s cost management tools and platforms like Octobits to help you get the most out of your spending.
Monitoring the ever-changing cloud environment is key to making sure you’re using your resources as efficiently as possible. By adjusting your strategies, you can make the most of your Microsoft Azure VM pricing.
