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# Overview

## Describe Azure cost management and Service Level Agreements (10-15%)

## Describe methods for planning and managing costs

* Identify factors that can affect costs (resource types, services, locations, ingress and egress traffic)
* Identify factors that can costs (reserved instances, reserved capacity, hybrid use benefit, spot pricing)
  * Describe the functionality and usage of the Pricing calculator and Total Cost of Ownership (TCO) calculator
* Describe the functionality and usage of Azure Cost Management

## Describe Azure Service Level Agreements (SLAs) and service lifecycle

* Describe the purpose of Azure Service Level Agreements (SLA)
* Identify factors that can impact an SLA (i.e Availability Zones)
* Describe the service lifecycle in Azure (Public Preview and General Availability)

## Factors affecting costs

* Different services are billed based on different factors

## Free Services

* Resource groups
* Virtual networks (up to 50)
* Load balancer (basic)
* Azure Active Directory (basic)
* Network security groups
* Free-tier web apps (up to 10)

## Metered services

* Tracking time
* Tracking GB
* Number of executions
* Tracking traffic

## Pay per usage model (consumption model)

## Opportunity for cost savings

* Azure functions:
  * 1 million executions free per month
  * $0.20 per million executions
  * Cheapest virtual machine is $20 per month

## Pay per usage Services:

* Functions
* Logic Apps
* Storage (pay per GB)
* Outbound bandwidth
* Cognitive Services API

## Pay for time (per second):

* Per second billing means billing stops when the VM is stopped
* You are also paying for storage even tho the VM is stopped

## Stability in pricing

* Pay a fixed price per month for computing power or storage capacity
* Whether you use it or not
* Discounts for 1-year or 3-year commitment in VM (Reserved instances)
* Multi-tenant or isolated environment

## Pay for Bandwidth

* First 5 GB is free
* Inbound data is free (Data coming into Azure)
* 1 PB of data transferred = $52.000