Common Mistakes in Azure Cost Optimisation and How to Avoid Them

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Stan Hoogeboom

Azure offers powerful tools for managing cloud infrastructure, but cost optimisation can be complex, especially with potential pitfalls in Microsoft’s recommendations. Issues like idle resources, improper VM resizing, and misaligned pricing plans can all add up. By understanding these common mistakes and implementing proactive strategies, you can keep Azure costs under control while maintaining a high-performing environment. Here’s a look at frequent Azure cost management errors and how to avoid them.

1. Idle and Oversized Resources: Are These Hidden Budget Drainers Hurting Your Bottom Line?

Idle resources, such as virtual machines (VMs) running when not needed, can silently drain budgets. Even stopped VMs incur charges for attached storage or network resources. Oversized resources also present a cost issue; overprovisioned VMs or databases result in paying for more power than required. To combat this, set up automation to shut down non-critical VMs during off-hours. Azure Automation allows you to schedule shutdowns easily. For oversized resources, analyze usage data over several months to identify resource needs accurately. Tools like Azure Monitor can track CPU, memory, and storage usage, ensuring you only pay for what you need.

2. Resizing Recommendations: Is Bigger or Smaller Always Better?

Azure Cost Advisor’s resizing suggestions often focus on recent CPU and network usage, potentially overlooking memory or storage needs. Resizing based on limited data can lead to performance issues. Instead, analyze usage trends over a 30- or 90-day period for a comprehensive view. Additionally, consider memory and storage needs and explore different VM families to ensure resizing aligns with long-term performance requirements.

3. Zombie Assets: Are Forgotten Resources Draining Your Azure Budget?

“Zombie assets”—resources no longer needed but still active—often persist after a project ends or an environment change. These can include unattached disks, orphaned storage, or unused IP addresses that keep adding to your bill. Conduct regular checks on advisory reports and use Azure Resource Graph to search for inactive resources across your environment. Setting policies to flag or delete unused resources and tagging resources by project or expiration date can keep your infrastructure clean and cost-effective.

4. Reserved Instances (RIs): Are You Falling Into the Commitment Trap?

Azure’s Cost Advisor may recommend Reserved Instances (RIs) even for dynamic workloads, which can lead to overspending. RIs are best for steady, predictable workloads and offer savings when committing to a one- or three-year plan. For variable workloads, however, RIs may not be ideal. Analyze workload patterns carefully, and if you’re new to RIs, consider starting with a one-year term for flexibility. For dynamic workloads, Savings Plans or spot VMs might provide better cost control.

5. Savings Plans: How Can Flexibility and Strategy Save You More?

Savings Plans are a flexible cost-saving option, covering a broader range of services compared to RIs and applying at the subscription level. However, misalignment can occur without a clear understanding of actual usage patterns. Begin by identifying services with consistent hourly use, which you can determine by analyzing monthly spending on resources like VMs and databases. Regularly review usage to confirm the plan’s effectiveness, and consider combining Savings Plans with RIs for specific, predictable workloads.

6. Region Optimisation: Is Your Resource Location Costing You?

Choosing the right region for your resources can result in substantial cost savings. Azure pricing varies across regions, so deploying in high-cost locations when it’s unnecessary can quickly increase expenses. Use Azure’s Pricing Calculator to compare costs across regions and consider relocating resources if latency or regulatory compliance isn’t a concern. For multi-region setups, centralise services that don’t require specific regional distribution to reduce data transfer fees.

By avoiding these common cost optimisation mistakes, you can make the most of your Azure environment without overspending. Take control of your cloud costs today by implementing these strategies, and keep your infrastructure efficient, scalable, and cost-effective. Need expert guidance to optimise your Azure setup further?

Contact us to learn how we can help you maximise savings and performance in your cloud environment.

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