Azure Cost Management

Azure cost optimization, budgets, and spending analysis.

AzureCost ManagementBudgetsOptimizationFinOps

Cost Analysis

Analyze spending patterns and identify cost drivers.

Key Views

  • Accumulated costs: Total spending over time
  • Daily costs: Day-by-day breakdown
  • Cost by service: Which services cost most
  • Cost by resource: Individual resource costs
  • Cost by tag: Group by cost center, project, etc.

Grouping Options

Filter and group by subscription, resource group, resource type, location, or tags.

Budgets & Alerts

Set spending limits and get notified when approaching thresholds.

Budget Configuration

  • Set monthly, quarterly, or annual budgets
  • Scope to subscriptions, resource groups, or resources
  • Filter by tags, meters, or resource types
  • Configure multiple alert thresholds (e.g., 50%, 75%, 90%, 100%)

Alert Actions

  • Email notifications to stakeholders
  • Trigger Action Groups for automation
  • Call webhooks or Logic Apps
  • Auto-shutdown VMs when budget exceeded

Cost Optimization

Quick Wins

  • Right-size VMs: Use Advisor recommendations
  • Delete unused resources: Orphaned disks, IPs, NICs
  • Auto-shutdown dev VMs: Schedule off-hours shutdowns
  • Use spot instances: For interruptible workloads

Long-term Savings

  • Reserved Instances: 1-3 year commitments for 30-72% savings
  • Savings Plans: Flexible compute commitments
  • Hybrid Benefit: Use existing Windows/SQL licenses
  • Dev/Test pricing: Reduced rates for non-production

Tip

Review Azure Advisor cost recommendations weekly - they often identify 10-30% potential savings.

Tagging for Cost Allocation

Implement consistent tagging for cost reporting and chargebacks.

TagPurpose
CostCenterDepartment billing code
Environmentprod, dev, test, staging
ProjectProject or application name
OwnerResponsible team or person