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