How to Track and Optimize Cloud Costs in Microsoft Azure

Microsoft Azure cost management is the practice of monitoring, analyzing, and optimizing cloud spending to maximize operational efficiency and financial control. Azure’s consumption-based billing model means costs can escalate quickly if resources are not actively managed. 

Effective cost management relies on understanding what is running in your environment, leveraging built-in tools like Azure Cost Management + Billing and Azure Advisor, and applying strategies such as rightsizing, cleaning up unused resources, and selecting optimal pricing models. Organizations that implement these practices gain visibility into their cloud spend, reduce waste, and improve ROI.

Optimize Cloud Spend with Azure Cost Management

In this episode of Demystifying Microsoft podcast, Nathan Taylor (SVP, Global Microsoft Practice Leader at Sourcepass MCOE) explores the fundamentals of Azure cost management, including how consumption-based billing works, why costs can increase unexpectedly, and what practical steps organizations can take to control spending. The discussion covers the importance of visibility, the role of partners in cost management, and actionable strategies for ongoing optimization.

Timestamped Key Moments

• 00:00 — Introduction to Azure cost management and its importance
• 02:22 — What is Azure? Infrastructure, marketplace, and consumption-based billing
• 04:45 — Why Azure bills can grow: pricing models, resource types, and common pitfalls
• 09:41 — Using Azure Cost Management + Billing for visibility and reporting
• 12:03 — Identifying expensive resources: VMs, storage, and log analytics
• 14:28 — Leveraging the Azure pricing calculator for forecasting and planning
• 19:11 — Cleanup and rightsizing: actionable recommendations from Azure Advisor
• 21:36 — Azure Virtual Desktop: cost management considerations

What Impacts your Azure Cloud Costs?

Azure cost management is a suite of tools and practices designed to help organizations monitor, analyze, and optimize their cloud spending. It provides visibility into resource usage, enables budgeting and forecasting, and supports ongoing optimization through recommendations and automation. With cloud costs often fluctuating due to dynamic resource usage, cost management is essential for maintaining financial control and maximizing the value of cloud investments.

How Can you Monitor and Control Azure Billing?

Azure Cost Management + Billing consolidates billing data from all subscriptions, offering real-time tracking and detailed breakdowns by resource group or custom tags.

Azure Advisor provides actionable recommendations for rightsizing, cleaning up unused resources, and optimizing pricing models.

By integrating these tools into business and engineering workflows, organizations can proactively manage costs, avoid budget overruns, and ensure resources are aligned with actual needs. 

Examples of Managing Costs in Azure

• Rightsizing VMs: Azure Advisor identifies underutilized virtual machines and recommends resizing or shutting down to reduce costs.
• Storage Optimization: Moving data to lower-cost storage tiers or cleaning up unused disks can yield significant savings.
• Log Analytics Management: Monitoring and filtering log data, especially with tools like Microsoft Sentinel, prevents runaway storage costs.
• Partner Billing: Transitioning Azure subscriptions to a partner can unlock additional support, incentives, and simplified billing.

Optimize your Azure Spend with Guidance from Sourcepass MCOE

Managing cloud costs in Azure requires ongoing attention, technical insight, and the right tools. By understanding your environment, leveraging built-in cost management features, and applying proven strategies, you can gain control over your cloud spend and maximize the value of your investment. Staying informed and proactive is key to making decisions that benefit your organization.

For ongoing updates and practical insights on Azure cost management, subscribe to the Demystifying Microsoft podcast.

If you have questions about optimizing your cloud spend or want to discuss options for deploying cost-saving strategies, connect with the Sourcepass Center of Excellence for Microsoft for expert guidance and support.

Explore more in our Azure Cost Management series:

• Control Azure Spend with Microsoft’s Built-In Optimization Tools

• Cut Azure Costs with Reservations and Licensing Strategy