Reduce Your Costs On Azure
Written by Gilad David Maayan   
Friday, 26 January 2024

More and more businesses and organizations are moving to the cloud to take advantage of all the benefits of performance, scalability and global accessibility. But without proper attention, it's easy for costs to escalate. Here are five ways to manage cloud spending on Azure.


What Is Azure Cost Optimization? 

Microsoft Azure is one of the world’s leading cloud providers. Azure cost optimization is a strategic approach towards managing your spending on Azure by ensuring you're utilizing resources effectively. This involves understanding your consumption patterns, identifying wasteful expenditures, and implementing cost-saving measures.

Cloud optimization is an ongoing process that requires constant monitoring, analysis, and adjustments. As resources are added or removed, usage patterns change, or Azure makes pricing changes, your cost optimization strategies need to adapt.

Fortunately, Azure provides built-in tools and services to help you with cost optimization. Azure Cost Management and Azure Advisor are two such tools that empower you to gain insights into your spending and make informed decisions about cost management.

Importance of Cost Optimization for Developers Working in Cloud Environments 

Cost optimization in cloud environments is crucial for developers for several reasons: 

  • It enables development teams to make the most of their cloud investment. Spending less on infrastructure means more funds can be directed towards innovation and growth.

  • It promotes efficiency. By identifying and eliminating wasteful spending, you improve the utilization of your resources. This not only reduces costs but also leads to improved performance and productivity.

  • It gives your organization control over spending. With the right optimization strategies, you can predict your costs more accurately and avoid unexpected charges. This is especially important in the cloud where costs can quickly spiral out of control if not properly managed.

Five Things Developers Can Do to Reduce Costs on Azure 

1. Utilizing Azure Dev/Test Pricing

One of the most effective ways to reduce costs on Azure is by utilizing Azure Dev/Test pricing for your development and testing environments. Azure Dev/Test pricing offers significant discounts compared to standard Azure pricing, making it an excellent option for developers looking to minimize costs.

Furthermore, Azure Dev/Test pricing also gives you access to monthly Azure credits, which can be used to offset the costs of your development and testing workloads. This can result in significant savings over time, especially for larger projects that require extensive testing.

2. Using Scripts and Automation to Optimize Resource Usage

Scripts and automation play a crucial role in reducing Azure costs by optimizing resource usage. Automated scripts can be set up to start or stop virtual machines during off-peak hours or when they are not in use, preventing unnecessary spending. This is particularly useful for resources that are only needed during specific hours, such as development servers.

Azure Automation and Azure Functions are powerful tools for implementing such scripts. They enable developers to create, deploy, and manage code that automatically controls resource allocation based on specific conditions. For instance, you can use Azure Automation to scale resources up or down based on demand, ensuring you're only paying for what you use.

Additionally, implementing automation for routine maintenance tasks, such as backups and updates, can also contribute to cost savings. By automating these processes, you reduce the risk of human error and the need for manual intervention, which can lead to more efficient use of resources and lower costs.

3. Using Archiving and Lifecycle Management to Reduce Storage Costs

A significant portion of Azure costs often comes from storage. However, by implementing policies for archiving and automating lifecycle management, you can significantly reduce your storage costs.

Archiving your data in Azure can be a cost-effective way of storing data that you don't need immediate access to. Azure offers several options for archiving data, including Azure Blob Storage and Azure Archive Storage. By moving your infrequently accessed data to these lower-cost storage options, you can significantly reduce your storage costs.

In addition to archiving, automating your lifecycle management can also help reduce storage costs. Azure offers tools such as Azure Policy and Azure Automation, which you can use to automate tasks such as deleting old data or moving data to cheaper storage options based on predefined rules. This can help ensure that you are only paying for the storage you need, further reducing your costs.

4. Optimizing Virtual Machine Sizes and Types

Selecting the right virtual machine (VM) size and type is critical for cost optimization in Azure. Azure offers a variety of VM types, each optimized for different workloads, such as compute-intensive, memory-intensive, or storage-optimized tasks. Choosing a VM that aligns with your specific workload requirements can result in significant cost savings.

For instance, using burstable VMs like Azure’s B-series for workloads that experience variable CPU usage can reduce costs. These VMs are designed to provide baseline performance and the ability to burst to higher performance when required, making them cost-effective for applications that don't need constant high CPU performance.

Regularly reviewing and analyzing your VM usage is also important. Downsizing or consolidating VMs based on usage patterns can lead to cost reductions. Azure’s built-in analytics and monitoring tools can help you identify underutilized VMs that can be downsized, decommissioned, or consolidated.

5. Leveraging Azure Reserved Instances

Azure Reserved Instances (RIs) offer a way for developers to reduce costs by committing to a one or three-year term for VM usage. By prepaying or committing to a certain level of usage, you can receive a significant discount compared to pay-as-you-go pricing. This is particularly beneficial for workloads with predictable and consistent usage patterns.

When using RIs, it's important to closely match your reservation to your actual usage needs. Azure offers flexibility with Reserved Instances, allowing you to exchange or cancel reservations if your needs change, but careful planning can maximize cost savings.

Additionally, combining RIs with other Azure cost-saving measures, such as optimizing VM sizes and using Dev/Test pricing, can compound the cost benefits. Monitoring and managing RIs effectively ensures that you fully utilize your reservations and avoid unnecessary costs.


In conclusion, effectively managing costs on Azure requires a combination of strategic planning, continuous monitoring, and the adoption of cost-effective practices. By utilizing Azure Dev/Test pricing, employing scripts and automation, optimizing storage through archiving and lifecycle management, selecting the appropriate VM sizes and types, and leveraging Azure Reserved Instances, developers can significantly reduce their cloud expenditure. These practices not only contribute to direct cost savings but also encourage a culture of efficiency and resourcefulness within development teams.

It's important to remember that cost optimization on Azure is not a one-time effort, but an ongoing process. Regularly reviewing and adjusting your strategies in response to changing usage patterns and Azure offerings will ensure that your cloud infrastructure remains both cost-effective and performance-optimized. By integrating these cost-saving measures into your Azure management routine, you can maximize your cloud investment, allowing you to allocate more resources towards innovation and growth.

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