3.1. Describe cost management in Azure

The skill “3.1. Describe Cost Management in Azure” focuses on the Azure services related to managing and optimizing costs in the cloud. Cost management is an essential aspect of Azure governance, enabling users to monitor and control their spending, and optimize their use of Azure resources.

Azure Cost Management + Billing:

  1. Cost Analysis: Azure Cost Analysis provides users with a comprehensive view of their Azure spending. It enables users to monitor and analyze their spending across different Azure services, resources, and subscriptions, and identify areas where cost optimizations can be made.
  2. Budgets and Alerts: Azure Cost Management + Billing enables users to set budgets and alerts to track their Azure spending. Users can set budgets for different cost categories, such as subscriptions or resource groups, and receive alerts when spending exceeds those thresholds.
  3. Reserved Instances: Azure Reserved Instances enable users to save costs on their virtual machine usage by committing to a one-year or three-year term for their virtual machines. Users can save up to 72% on their virtual machine costs by using Reserved Instances.
  4. Cost Optimization Recommendations: Azure Cost Management + Billing provides users with cost optimization recommendations based on their usage and spending patterns. These recommendations enable users to identify areas where cost optimizations can be made, such as resizing virtual machines or using lower-cost storage options.

Understanding Azure Cost Management is essential for anyone working with Azure infrastructure and services. These services provide a range of tools and capabilities that enable users to manage and optimize their Azure spending, ensuring that they are using their resources efficiently and cost-effectively. By monitoring and optimizing their Azure spending, users can ensure that they are getting the most value from their Azure investments.