Cloud FinOps - Microsoft Azure

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Microsoft Azure is a cloud computing platform and infrastructure created by Microsoft for building, deploying, and managing applications and services through a global network of Microsoft-managed data centers. It provides a wide range of services, including virtual machines, web and mobile apps, storage, databases, and machine learning, among others, that can be easily integrated and scaled as needed. Azure supports multiple programming languages, frameworks, and tools, making it a flexible and accessible platform for businesses of all sizes.

Looking through the lens of a Cloud FinOps Team, any cloud platform has a lot of perks but at the same time if they are used in an uncontrolled, non-optimized way leads to making a hole in your pocket instead of offering great flexibility what you bargained for. The following are some of the common misconfigurations that can lead to increased costs in Microsoft Azure-hosted environments:

  1. Unoptimized virtual machine (VM) sizes: Using oversized VMs or not choosing the right VM size can result in paying more for resources that aren't being used.

  2. Unused resources: Leaving unused resources such as VMs, storage accounts, or databases can lead to unnecessary charges.

  3. Lack of auto-shutdown for test environments: Forgetting to shut down test environments can result in continuous billing even when the environment is not in use.

  4. Overprovisioned storage: Using more storage than needed, particularly with premium storage, can result in significant cost overruns.

  5. Over-reliance on storage transactions: Unnecessary storage transactions, such as frequent updates or deletions, can add to costs.

  6. Insufficient network security: Failing to secure the network properly can lead to security incidents, resulting in increased costs for remediation and investigation.

  7. Neglecting to monitor costs: Failing to monitor usage and spending regularly can result in unexpected costs due to the overconsumption of resources.

By avoiding these misconfigurations and regularly monitoring usage and spending, organizations can better control costs and optimize their Microsoft Azure environment.

Here are some tips to optimize usage on Microsoft Azure cloud:

  1. Right-size virtual machines (VMs): Properly sizing VMs can help reduce costs and ensure that you're only paying for the resources you need.

  2. Turn off or delete unused resources: Unused resources such as VMs, storage accounts, or databases can continue to incur charges, so it's important to turn them off or delete them when they're no longer needed.

  3. Utilize auto-shutdown for test environments: Automatically shutting down test environments when they're not in use can help prevent unnecessary charges.

  4. Use cost-effective storage options: Consider using cost-effective storage options, such as Azure Blob storage for unstructured data, and Azure managed disks for structured data.

  5. Minimize storage transactions: Minimizing storage transactions, such as updates and deletions, can help reduce costs.

  6. Monitor and control network traffic: Implement network security best practices to prevent unauthorized access and control network traffic to minimize costs.

  7. Use Azure Cost Management: Azure Cost Management provides a centralized platform for tracking and optimizing cloud costs. It helps you monitor your usage and spending, set budgets, and create alerts when you approach your limits.

By following these tips, you can optimize your usage on Microsoft Azure cloud, reduce costs, and improve the efficiency of your cloud infrastructure.

Above optimization, Microsoft Azure does offer a lot of cloud-native options that can further help reduce costs and convert an environment into a fully optimized one

  1. Choose the right pricing model: Azure offers various pricing models, including pay-as-you-go, reserved instances, and Azure Dev/Test pricing. It's important to choose the right pricing model that best suits your business needs to avoid overspending.

  2. Take advantage of Azure Reservations: If you know that you're going to use a certain service for a long period of time, consider using Azure Reservations. This allows you to save up to 72% compared to pay-as-you-go pricing.

  3. Use Azure Hybrid Benefit: If you have an existing Microsoft license, you can take advantage of the Azure Hybrid Benefit and save up to 40% on your virtual machine costs.

  4. Monitor and manage your resources: Keep an eye on your usage and spending. Azure provides a cost management tool that helps you monitor your costs, set budgets, and create alerts when you approach your limits.

  5. Delete unused resources: Deleting unused resources is an easy way to reduce costs. You can automate this process using Azure Automation.

  6. Optimize storage: Optimizing storage is another way to save money on Azure. Use Azure Blob storage for unstructured data, and use Azure managed disks for structured data.

  7. Use Azure Dev/Test pricing: If you're using Azure for development and testing, you can save up to 40% with Azure Dev/Test pricing.

These small changes if addressed and implemented, the Microsoft Azure hosted environments would be something that you opted it for and it will not only deliver a great platform but truly convert your extra expenses on cloud costs into a revenue share.