Now that we know how to estimate and monitor our cloud costs, let's look at the ways to reduce them.
Let's start with a few ideas on how to reduce our infrastructure costs.
We've already hinted at a few options.
Using reserved instances for starting VM, workloads can reduce your costs between 70 and 80%.
Purchasing reserved instances is done on an annual or three year term, and you need to pre pay for the whole term.
However, if you plan to run those for long periods of time and combine the purchase with hybrid benefits, you can get up to an 80% discount.
Right sizing VMS is, of course, the other option we discussed.
You can leverage the azure advisor to help you with that,
as those VMS cost is linear and doubles within the VM family.
And you can reduce your VM cost in house by simply choosing a VM of one size. Smaller
as we mentioned before, different regions have different prices for the same resource types.
If it's not critical, just choose a location that's cheaper.
Not all virtual machines need to be run all the time.
You can save a lot of compute charges. If you d allocate the VMS during off hours,
you can use as your automation to stop and start machines overnight. When your employees aren't working.
It may be obvious, but you can be surprised as to how many resources are still available in the cloud. Although nobody is using them,
you can develop an automation script and periodically run scans that can notify the owners of unused resources to delete them.
Certain subscriptions, like visual studio subscriptions, have azure credits apply to them.
Visual Studio Professional has $50 a month, while Visual Studio Enterprise has 100 $50 a month.
Your developers can use those for learning, developing and testing activities.
Visual studio subscriptions have so called spending limits
once you exceed the limit. All resources in the subscription are disabled, and you are not charged for those
when the billing period ends. If there are still credits remaining, the resources are activated and you can use them again.
Not all subscription types allow you to have spending limits.
If this is the case, you can at least set the budget and at least get a notification when the budget is exceeded.
Last but not least, you can migrate to pass and SAS services that offer significant cost savings.
Depending on the application, though there may be some challenges with this approach because it may require significant development effort.
Licensing is another area where you can save on costs.
Here are some ways you can do that.
There's a difference in pricing between Lennox and Windows workloads because Windows ones include a licensing cost.
If you do not require a Windows operating system, you may want to choose Lennox to save on costs.
You can use Dev test subscriptions to save on costs for your non production environment.
Both enterprise and pay as you go Subscriptions have the option for Dev test benefits.
There are some restrictions, though.
First, those are limited to non production environments only. And second, any users of the workload must be covered by the visual studio subscription.
Another option to save on licensing costs is to use the hybrid benefits for Windows servers.
If you have already invested in licenses for your on premises servers, this can be a great option.
You can use those licenses for virtual machines on azure.
To be eligible for that,
your license for your windows server must be covered by software assurance.
Here's how that works.
Each two processor or 16 core license is entitled to two instances with up to eight cores or one instance with up to 16 cores in azure.
Standard edition licenses can be used either on premises or in azure, but not simultaneously in both
data center. Additional licenses can be used simultaneously on premises and an azure, which means that you can cover two VMS with a single license.
SQL Server is another Microsoft product that is licensed per CPU,
similar to Windows benefits. You need to have software assurance to use them.
You can use your hybrid benefits for azure SQL V Corps based options or SQL, on virtual machines.
If you have standard edition per core licenses, you can get one V corps in the General Purpose service Tier of Azure SQL.
If you have Enterprise Edition per core licenses, you can get one V corps in the business critical service tier of Azure SQL.
If you have highly Virtualized Enterprise Edition per core licenses, you can get four V cores in the business critical service tier of azure SQL
for SQL servers on Azure VMS. The licenses match 1 to 1.
If you have enterprise agreements, you have freedom licenses from your on premises workloads, and you can use those on azure.
Just search for bring your own license or B y o L resources in the azure marketplace.
You can also use the SQL Server Developer edition for your non production workloads.
This is a free product offered by Microsoft, and you can find it in the azure marketplace.
And last but not least, you can use container instances for workloads that require a lot of memory storage and I o bandwidth,
but don't require a lot of CPU cores.
This way, you don't need to pay as many licensing fees per core.
Such instance types are the D. S, E. S, G S and M s series.
And with this, we are wrapping up our discussion on managing costs and savings in Azure