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Azure Cost Management

Optimize spending and manage budgets

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.

Recommended Tags

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