Azure Cost Management - Make the most of Azure by optimizing your cloud spend.pptx

Documentation

1.   With Azure Cost Management Make the most of Azure by optimizing your cloud spend

2. What’s covered here What is Azure Cost Management (ACM) Walkthrough of features currently available in ACM Cost Analysis Budgets & Alerts Exports Optimization Power BI APIs Forecasting Amortized views for RIs

3. Introduction “Cost management” is the continuous process of planning and controlling costs Visibility Accountability Optimization

4. Visibility

5. Richer analysis, budget alerting, forecasting Reduced data latency by up to 80% On by default Integrated with Azure Advisor Better experience for more users Free to manage Azure costs Least privileged access with RBAC NEW Azure Cost Management Built into Azure

6. Cost Analysis Date Ranges Saved and share reports Detailed Cost Exploration Daily, accumulated, monthly grain Group, filter and view by 20+ dimensions Integrated with Budgets Enrollment, subscription, management group and resource group scopes

7. Start with built-in views , customize to explore

8. Invoice Reconciliation

9. Cost Analysis – Forecasted Spend Forecast costs up to a year Forecast on available dimensions View forecast against a budget

10. Cost Management - Dashboard Select dashboard to pin to Click on the pin icon

11. Cost Management - Dashboard

12. Cost Management - Reservations 1 2 3 1 2 3 Amortized view allows you to see the discounted RI utilization costs Select the desired reservation to view “Charge Type” allows you to see both usage charge and/or any unused reservations

13. Export data to your storage account Schedule exports for your data Automatically loaded to storage account Integrated into cost analysis

14. Cost Management support for Cross Cloud - AWS AWS spend is available in ACM Analyze costs across Azure & AWS Viewing & setting AWS spend

15. PBI Connector & Template App Power BI connector and template app provides an additional mechanism to get the cost, charges and recommendations RI recommendations related views (Coverage, Utilization, Savings ) and Hybrid Benefit views available in the app https://aka.ms/costmgmt/ACMInsights

16. Accountability

17. Keys to accountability Extend visibility to stakeholders Management groups, RBAC, and tagging Management teams Finance teams App teams Set clear goals Budgets and alerts Hold teams accountable for improvement

18. Management Groups to organize subscriptions Create a custom management hierarchy to fit your organization Enables RBAC, policies for tagging, cost analysis and budgets at any scope Shared with Policy, Security Center, Privileged Identity Management services

19. Least-privileged RBAC roles Azure RBAC Role Description Example Personas Cost Management Reader Read access to all cost mgmt. features, but no changes allowed Azure service owner, it dev ops, finance analyst Cost Management Contributor In addition cost management reader can create budget and alert creation Azure service owner, finance manager, dept. or product owner Billing Reader Has read-only access to billing information in Azure portal Finance manager Reader Read access Contributor Lets you view everything, but not make any changes Owner Lets you manage everything, including access to resources With RBAC you can now grant access to users to only the scope(s) they need access to, all the way down to a specific Resource Group

20. Tags add context for cost analysis # ## ## ### TAG = # Finance codes - CostCenter tag, etc. Application context - AppService tag, etc. Deployment context - Environment tag, etc. Who is accountable - BusinessOwner tag, etc. Tags should be enforced by configuration policies Use Azure Policy to set and track ARM tagging policies MG, Subscription, RG scopes Enforce that tags exist Set default values for tags Audit if tags are missing

21. Budgets for monitoring and notifications Monitor your costs using budgets Get notified when threshold are met Automate with Action Groups Integrated into cost analysis Integrated with forecasts

22. Cost Allocation (Private Preview) Allocate shared costs From a Subscriptions, Resource Groups or Tagged resource to a target Subscription, RG or tagged resource Allocation Rules supported Prorate based on Total costs, compute, storage, network costs of target OR Distribute costs evenly

23. Markups (Private Preview)

24. Optimization

25. Cost optimization is a key to cloud success The workload will run fine in all three VM sizes Which will a developer naturally choose? Which will deliver more success to the business? Which one will make managers and finance want more things in the cloud? VM1 Workload VM3 Workload VM2 Workload How do you know when there are opportunities to optimize?

26. Azure Advisor provides optimization recommendations Cost Recommendations provide cost savings opportunities and is deep linked in Cost Management Advisor also has other recommendations like Security, High Availability, Performance, Operation Excellence Optimize performance to make the most of your resources Performance Maximize the return of your IT budget investment Cost Improve the availability of your business-critical applications High Availability Enhance protection of your Azure resources from potential security threats Security

27. Optimization 4 Do more with less by optimizing costs Always start in Azure Advisor VM right-sizing Delete unused resources Use standard snapshots Save with VM reservations

28. Right Sizing & Idle VM Shutdown recommendation

29. VM – Usage metrics

30. Right Sizing sample dashboard

31. Reserved Instance (RI) Recommendations Available in Azure Advisor Provides Qty, SKU & Location Potential savings on 3Y RI

32. Power BI – Reservation Coverage Gain confidence by drilling in to view actual utilization based on which recommendations was derived Drill down to view this for a specific Region, SKU, Scope and Reservation Term

33. Power BI – Reservation Savings Gain confidence that the purchased reservations are yielding the right savings by viewing all used, unused reservation and net positive/negative savings Savings are calculated by comparing the reservation price by your organizations demand price.

34. PBI - Windows Server AHB Usage Report View your Azure Hybrid usage to view license and core coverage Shows eligible machines where AHB licenses can be applied or applied more efficiently

35. What’s new with Azure Reservations Azure Reservations offer capacity prioritization (for single scope) Multiple product families: Available for VMs, SQL Database and Cosmos DB. You can also pre-purchase at a discount SUSE Enterprise Linux Apply RI to Classic VMs, cloud services and Dev/Test subscriptions – constrained cores (you can constrain cores of RIs you purchased and the rest of the cores can go to another box) Significant cost savings up to 72% over pay-as-you-go models Budget predictability and prioritized compute capacity Flexibility to modify reservations and simplicity of purchase

36. Feature description Instance Size Flexibility automatically applies RI benefits across VMs within the same series and region Customers will have the option to turn this feature on or off depending on their business needs or preferences Instance Size Flexibility helps maximize the customer’s RI purchase by applying the benefit to as many cores as possible Example DS1_v2 (1-core) DS2_v2 (2-core) DS3_v2 (4-core) DS4_v2 (8-core) DS5_v2 (16-core) Customer purchases (10) DS4_v2 RIs in Australia Southeast, a total of 80 cores This can be distributed against other DS series VM in the same region. Ie / 6 DS4_v2 and 8 DS3_v2 Additionally: OS agnostic Instance size flexibility

37. 2 Cancel 1 Exchange Feature description Exchange enables customers to change the VM size, family, region & term When an exchange is initiated, we determine a pro-rated value for the months remaining in the current RI term There is no cap on the number or amount of exchanges that can be done There is no fee for an exchange , caveat is exchange should be equal or more Customers can exchange a single RI for multiple RIs Feature Description Cancel enables customers to terminate their RI purchase for a pro-rated refund When a customer initiates a cancellation, we determine a monthly pro-rated value for the time remaining in the current RI term Microsoft applies a 12% early termination fee; limited to $50k USD in refunds per calendar year Exchange vs Cancel

38. Azure Hybrid Benefit Full cost Base rate + SQL EE and Windows Not using Azure Hybrid Benefit $3.972/hour Base rate + Windows Azure Hybrid Benefit for SQL Server $0.972/hour 1 Savings based on 8-Core D13 v2 VM in East US 2 region. Savings are calculated from full price (license included) for SQL Server Enterprise edition VM against reduced rate (applying Azure Hybrid Benefit for SQL Server and Windows Server), which excludes Software Assurance costs for SQL Server and Windows Server, which may vary based on EA agreement. Actual savings may vary based on region, instance size and compute family. Prices as of June 5 2018, subject to change. Base Rate Azure Hybrid Benefit for Windows and SQL Server $0.598/hour ~75% savings $0.28/hour Base Rate Azure Hybrid Benefit for Windows and SQL Server+3-year RI ~85% savings 1 ~93% savings Get base compute rates if you have active Software Assurance for on-premise Windows Server licenses

39. Where to go for more information Azure Cost Management Product page https://aka.ms/costmgmt/about Additional videos https:// aka.ms/ costmgmt /videos Monthly updates https:// aka.ms/ costmgmt /blog Follow @ AzureCostMgmt on Twitter Documentation https://aka.ms/costmgmt/docs API reference https://aka.ms/costmgmt/docs  Reference Power BI App https://aka.ms/costmgmt/acminsights

40. Thank you.