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Cost Optimization Strategies for Azure

Cloud costs can spiral quickly without proper governance. After reviewing dozens of Azure environments, I've identified patterns that consistently reduce spend by 30-40%.

Reserved Instances

For predictable workloads, reserved instances offer significant savings:

Commitment Savings
1 Year ~30%
3 Year ~50%

Right-sizing

Most VMs are over-provisioned. Use Azure Advisor recommendations and actual metrics:

Perf
| where ObjectName == "Processor" and CounterName == "% Processor Time"
| summarize avg(CounterValue) by Computer, bin(TimeGenerated, 1h)

Auto-shutdown

Development environments don't need to run 24/7. Implement auto-shutdown policies and save 65% on non-production costs.

Tags and Accountability

You can't optimize what you can't measure. Implement a tagging strategy that assigns costs to business owners.