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The simplicity with which cloud-based platforms like Azure can be used to develop and implement apps has completely changed the way organizations function in today's digital environment. The days of stressing about the nuances of infrastructure, such as availability, stability, and scalability, are long gone because cloud providers take care of these details with ease. However, there is a major drawback: expense, especially when it is left unchecked!

The ease of cloud deployment, if not properly supervised, can result in unforeseen high cloud costs, which could quickly double or even triple the budget allotted. In severe circumstances, companies have seen their yearly allotment for technology disappear in a matter of weeks.  

This makes utilizing effective cloud cost optimization strategies crucial for realizing the full benefits of cloud computing while preserving financial stability. For Azure Cloud, we bring the top 10 ways with which you can optimize your costs and achieve cloud cost savings.

Azure Cost Optimization Best Practices

1. Rightsizing your instances

Azure makes it easy to provision servers with just a few clicks, but this convenience can lead to overspending. Even though hosting on a large server may seem dependable, it can quickly eat into your budget. It's smart to regularly check your resource usage and adjust as needed.

2. Determine virtual disks and underutilized resources

Charges for all resources purchased—even those that are no longer actively used—will be included in a cloud service bill. In these situations, the expense is derived from virtual disks and underutilized storage, both of which can be easily removed. To find resources that can be eliminated and to make sure they are not being used, continuous monitoring is necessary. Azure's well-architected review assessment by an Azure well-architected partner helps find these resources and accounts for one of the best possible Azure cost optimization best practices in this case.

3. Workload optimization based on types of Azure Virtual Machine (VM)

Monitoring the resources that have been allocated is a recommended Azure cost optimization best practice that can help you save money on the platform. Savings can also be increased by knowing which kind of Azure virtual machine is best for the workload. Azure virtual machines are classified into many kinds based on their intended use. Azure VM categories and their series include General Purpose, Compute Optimized, Memory Optimized, Storage Optimized, and GPU, just like AWS EC2 instance kinds.

4. Selecting Appropriate Services

Azure offers a plethora of serverless resources. We can pay for the capacity we utilize on a server, rather than paying for the entire capacity. The majority of the time, using serverless resources is preferable because they automatically reduce costs while the system is idle. Many workloads operating in virtual machines (VMs) and Cloud Service Web/Worker roles can be replaced by Azure Functions running under a consumption plan. Many other services are also available in a Serverless plan. To cut costs, think about utilizing serverless resources whenever possible.

5. Autoscale and club unused resources

Idle resources are those that operate at a CPU optimization level of 1% to 5%. When it comes to billing, it's just another example of unnecessary spending. Businesses can reduce costs and take advantage of on-demand scalability to minimize their Azure expenses by grouping these idle resources. For your database virtual machines (VMs), compute, and storage resources to scale automatically when they go above or below a given threshold, use the auto-scaling functionality and set up predefined rules.

6. Move to containers

Although virtual machines (VMs) are a great alternative, the cloud platforms like Azure also offer containers. This consolidates several workloads onto fewer servers, hence ensuring Azure cost optimization. Other advantages of this solution include faster operation power, integrated monitoring systems, a smaller digital footprint, etc.

7. Choose Reserved Instances

One significant area where you can do well with Azure cost optimization and save resource costs by up to 80% is with Azure Reservations. Microsoft Azure offers resource discounts according to a stated one- to three-year usage commitment. 

8. Move data to a different geographical region

Azure prices differ by area. Thus, it is sensible to take the geographic location of your resources into account when determining expenses. Transfer your workload to a less expensive area if at all possible, for better cloud cost optimization.

9. Azure budget planning and management with tools, reports, and alerts

To cut down on Azure spending and adhere to budgetary constraints, the cloud vendor provides a number of cloud billing management solutions and cloud cost visibility platforms that aid in cost estimation, real-time insights, cloud cost monitoring, reporting, and notifications.

10. Establish Guidelines and adhere to best practices

For engineering-related activities, technical brainstorming sessions, handover meetings, and retrospection meetings are typical. Arrange a regular meeting of this nature to talk about cloud cost reduction. To limit the production and change of resources, it would be beneficial to establish access policies. Team owners should be given responsibility for these policies. Since resource deployment has a cost, only a select few team members should be permitted to do so.

You should subscribe to a third-party service for controlling Azure costs to have the finest picture. It guarantees that all Azure cost optimization best practices are adhered to and is just as important for an application as an APM tool.


In summary, understanding Azure cost optimization is about maximizing value rather than just cutting costs. By familiarizing with Azure's price structures and the application of customized tactics such as pay-per-use, spot pricing, and reserved instances, enterprises can maximize their cloud expenditures while augmenting effectiveness and expandability. By utilizing appropriate planning and resources, companies may fully utilize Azure's capabilities, and attain sustained optimization in the cloud.

CloudKeeper is a trusted Azure Partner that specializes in helping businesses navigate the challenges of Azure cost optimization. Using cutting-edge technologies and Azure cost optimization best practices, our knowledgeable team provides customized solutions to maximize the return on your cloud investments. Businesses can cut expenses, accelerate their Azure journey, and seize chances for expansion and innovation in the cloud. To explore more, talk to our team today

Let's discuss your cloud challenges and see how CloudKeeper can solve them all!
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