Describe Factors That Can Affect Costs in Azure: Learning Objectives

3.
Describe Azure management and governance (30–35%)
factors that impact costs in Azure
Learning objectives
After completing this module, you’ll be able to:
 Describe factors that can affect costs in Azure.

 Compare the Pricing calculator and Total Cost of Ownership (TCO) calculator.
 Describe Azure Cost Management Tool.
 Describe the purpose of tags.
Describe factors that can affect costs in

Azure
Azure shifts development costs from the capital expense (CapEx) of building out and
maintaining infrastructure and facilities to an operational expense (OpEx) of renting
infrastructure as you need it, whether it’s compute, storage, networking, and so on.
That OpEx cost can be impacted by many factors. Some of the impacting factors are:
 Resource type
 Consumption
 Maintenance
 Geography
 Subscription type
 Azure Marketplace
Resource type
A number of factors influence the cost of Azure resources. The type of resources, the settings
for the resource, and the Azure region will all have an impact on how much a resource costs
Examples
1. With a storage account, you specify a type such as blob, a performance tier, an access tier,
redundancy settings, and a region. Creating the same storage account in different regions
may show different costs and changing any of the settings may also impact the price.
2. With a virtual machine (VM), you may have to consider licensing for the operating system or
other software, the processor and number of cores for the VM, the attached storage, and
the network interface. Just like with storage, provisioning the same virtual machine in
different regions may result in different costs.
Maintenance
If you deprovision the VM, those additional resources may not deprovision at the same time, either
intentionally or unintentionally.By keeping an eye on your resources and making sure you’re not
keeping around resources that are no longer needed, you can help control cloud costs.
Network Traffic
Billing zones are a factor in determining the cost of some Azure services.
Bandwidth refers to data moving in and out of Azure datacenters. Some inbound data transfers
(data going into Azure datacenters) are free. For outbound data transfers (data leaving Azure
datacenters), data transfer pricing is based on zones.
A zone is a geographical grouping of Azure regions for billing purposes. The bandwidth pricing
page has additional information on pricing for data ingress, egress, and transfer.
Pricing calculator
Note
The Pricing calculator is for information purposes only. The prices are only an estimate.
Nothing is provisioned when you add resources to the pricing calculator, and you won't be
charged for any services you select.
TCO calculator
The TCO calculator is designed to help you compare the costs for running an on-premises
infrastructure compared to an Azure Cloud infrastructure
With the TCO calculator, you enter your configuration, add in assumptions like power and IT
labor costs, and are presented with an estimation of the cost difference to run the same
environment in your current datacenter or in Azure.
Describe the purpose of tags

Tags provide extra information, or metadata, about your resources. This metadata is useful
for:
 Resource management Tags enable you to locate and act on resources that are associated
with specific workloads, environments, business units, and owners.
 Cost management and optimization Tags enable you to group resources so that you can
report on costs, allocate internal cost centers, track budgets, and forecast estimated cost.
 Operations management Tags enable you to group resources according to how critical their
availability is to your business. This grouping helps you formulate service-level agreements
(SLAs). An SLA is an uptime or performance guarantee between you and your users.
 Security Tags enable you to classify data by its security level, such as public or confidential.
 Governance and regulatory compliance Tags enable you to identify resources that align
with governance or regulatory compliance requirements, such as ISO 27001. Tags can also
be part of your standards enforcement efforts. For example, you might require that all
resources be tagged with an owner or department name.
 Workload optimization and automation Tags can help you visualize all of the resources that
participate in complex deployments. For example, you might tag a resource with its
associated workload or application name and use software such as Azure DevOps to perform
automated tasks on those resources.
How do I manage resource tags?
You can add, modify, or delete resource tags through Windows PowerShell, the Azure CLI, Azure
Resource Manager templates, the REST API, or the Azure portal.
You can use Azure Policy to enforce tagging rules and conventions. For example, you can require
that certain tags be added to new resources as they're provisioned. You can also define rules that
reapply tags that have been removed. Tags aren’t inherited, meaning that you can apply tags one
level and not have those tags automatically show up at a different level, allowing you to create
custom tagging schemas that change depending on the level (resource, resource group, subscription,
and so on).
An example tagging structure
A resource tag consists of a name and a value. You can assign one or more tags to each Azure
resource.
Name Value
1. AppName 1. The name of the application that the resource

2. CostCenter is part of.
3. Owner 2. The internal cost center code.
4. Environment 3. The name of the business owner who's
5. Impact responsible for the resource.
4. An environment name, such as "Prod," "Dev,"
or "Test."
5. How important the resource is to business
operations, such as "Mission-critical," "High-
impact," or "Low-impact."
Keep in mind that you don't need to enforce that a specific tag is present on all of your resources.
For example, you might decide that only mission-critical resources have the Impact tag. All non-
tagged resources would then not be considered as mission-critical.

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3.

Describe Azure management and governance (30–35%)

factors that impact costs in Azure

 Describe factors that can affect costs in Azure.

Describe factors that can affect costs in

Describe the purpose of tags

How do I manage resource tags?

An example tagging structure

1. AppName 1. The name of the application that the resource

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