Introduction

In the ever-evolving landscape of cloud computing, managing costs effectively is crucial for organizations to optimize their investments and maximize returns. Azure’s comprehensive suite offers numerous opportunities for businesses to streamline their expenditure without compromising on performance or security. In this blog, we will explore the top 10 ways to save money using Azure FinOps, based on insights from the “FinOps and Azure Optimization” presentation.

#1: Properly Tag and Visualize Your Azure Costs

• Create and enforce tagging requirements: Ensure all resources are tagged at the resource group level using policies.
• Visualize tags: Use tools like Azure Cost Management or Power BI to visualize tags across the organization.
• Engage target teams: Involve relevant teams in cost reduction exercises based on tag data.

#2: Leverage Reserved Instances

• Identify resource usage: Ensure you’ll be using the resource before applying reserved instances.
• Apply reserved instances: Save 20% – 72% by purchasing and applying reserved instances to target resources.
• Move reserved instances: Reserved instances can be moved across resources to match actual spend.

#3: Apply Azure Hybrid Use Benefits

• Utilize existing licenses: Apply existing Software Assurance licenses to cloud resources to save up to 85%.
• Maximize benefits: This benefit can be applied to various scenarios where licenses exist.

#4: Right Size Key Resources

• Review and adjust resource sizes: Regularly review and adjust resource sizes to match actual needs.
• Optimize resource allocation: Ensure resources are not over-provisioned, which can lead to significant cost savings.

#5: Auto-Shutdown Resources Not in Use

• Implement auto-shutdown procedures: Use Azure Functions to automate shutdown and start-up of lab environments.
• Save on idle resources: Reduce costs by avoiding charges for resources that are not in use, potentially saving up to 50%.

#6: Create Lab Landing Zones and Automatically Delete Contents

• Set up self-destruct environments: Establish lab environments that automatically shut off and delete after a specified period.
• Control costs in development environments: Prevent unused resources from accumulating costs in employee playgrounds.

#7: Enable Auto-Scaling on Critical Resources

• Build smaller VM environments: Start with a smaller-scale VM environment and scale up as needed.
• Automate scaling: Use auto-scaling capabilities to adjust resources dynamically based on demand.

#8: Use Lab Rights for Certain Resources

• Leverage free tiers: Utilize free tiers of services like Cosmos DB for development and testing environments.
• Break out subscriptions: Use multiple subscriptions to take advantage of lab rights and minimize costs.

#9: Shift Costs Directly to a Business Unit

• Align responsibility with costs: Ensure business units are directly responsible for their costs to drive optimization efforts.
• Foster accountability: Encourage a culture of cost awareness and proactive management within business units.

#10: Apply Direct Staff to Cost Reduction

• Assign dedicated staff: Allocate specific personnel to focus on continuous cost optimization.
• Measure impact: Track the effectiveness of optimization initiatives and ensure investments yield significant returns.

Conclusion

Effective cost management in Azure requires a multifaceted approach, combining policy enforcement, strategic resource allocation, and continuous monitoring. By implementing these top 10 strategies, organizations can optimize their cloud spend, enhance efficiency, and achieve sustainable growth. Embracing Azure FinOps principles and leveraging the right tools and practices will position businesses to thrive in the competitive cloud landscape.