# 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


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.arkannis.net/cloud/azure/courses/az900-course/manage-azure-costs/overview.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.