Azure VMs are a popular choice for running workloads in the cloud, but they can also be expensive if not managed properly. Here are some ways to reduce the costs of Azure VMs:
- Right-size your VMs: Azure VMs come in a variety of sizes, and it’s important to choose the right size for your workload. Oversized VMs can lead to wasted resources and higher costs, while undersized VMs can lead to poor performance and slower application response times. Azure provides VM size recommendations based on your workload characteristics, such as CPU utilization, memory usage, and disk I/O. You can also use Azure Advisor to review your VM usage and recommendations for resizing your VMs.
- Use reserved instances: Reserved instances allow you to pre-pay for VM usage for 1-3 years at a discounted rate. By committing to a reserved instance, you can save up to 72% compared to pay-as-you-go pricing. Reserved instances are recommended for workloads that are expected to run for a long time. You can purchase reserved instances through the Azure portal, PowerShell, or Azure CLI.
- Use spot instances: Azure Spot VMs are unused capacity that are offered at a significantly reduced price compared to regular VMs. Spot VMs can be used for workloads that can tolerate interruptions and can be shut down or moved to a different VM when the price of the Spot VM goes above your budget. You can purchase Spot VMs through the Azure portal, PowerShell, or Azure CLI.
- Use auto-shutdown: Azure VMs can be automatically shut down during off-hours or when they are not being used. This can help reduce costs by only paying for the VM when it is needed. You can configure auto-shutdown using Azure Automation or Azure Logic Apps. You can also use Azure Cost Management to set up policies for auto-shutdown and monitor your VM usage.
- Use Azure Hybrid Benefit: If you have existing Windows Server or SQL Server licenses, you can use Azure Hybrid Benefit to save up to 40% on Azure VMs running those workloads. This allows you to use your on-premises licenses in Azure and pay only for the base compute rate. You can activate Azure Hybrid Benefit through the Azure portal or Azure CLI.
- Use Azure Cost Management: Azure Cost Management provides cost visibility and optimization recommendations for your Azure resources, including VMs. You can use Cost Management to monitor your VM usage and costs, set budgets, and receive recommendations for cost optimization. Cost Management also provides tools for tagging resources, creating alerts, and generating reports.
By using these cost optimization strategies, you can save money on Azure VMs without compromising on performance or availability. It’s important to regularly monitor your VM usage and costs and adjust your strategies as needed to ensure you’re getting the most value from your Azure investment.