Azure Cost Optimization Results in Action

This blog post discusses some cost optimization initiatives I took towards a customer that I work for. These strategies can be executed on any subscription to get similar outcomes. The purpose of this post is to raise awareness of possibilities and the potential business benefits that it can be achieved these.

The subscription that I worked on found to be one of the top consuming subscriptions. It’s predominantly running IaaS workloads and was doing ~A$2800 a day. It is important to make sure that the Azure Consumption is always spent optimally to ensure that the customer get maximum business benefit of Azure. As part of cost optimization initiatives the following activities was actioned on the subscription.

  • Use Azure Cost Management (Cloudyn) to get visibility of IaaS Cost Distribution and find recommendations of where can be optimized,
  • Use Power BI Dashboards to visualize the subscription cost distribution and analyse as a business where can be optimized,
  • Resize existing virtual machines based on the performance counters captured in OMS,
  • Ensure that HUB template benefit is active on existing Virtual Machines,
  • Clean up of unused Azure Resources,
  • Finally, enable reserved instances for the VMs that are running 24×7.

Key point to highlight is the order of the steps taken. First, the analysis of the cost. Secondly, resizing and ensuring the HUB benefit. Following that would be the clean-up of resources. Finally, once the VMs and their sizes are finalized, reserved instances are enabled.

Once everything is actioned, it takes a few days for the results to show up. We managed to achieve 38% of cost savings in total after the above initiatives. Following is what we saw as a reflection of outcomes.


Cost Saving After Resizing – $300 per day = A$9,300 per month saved.

Cost Saving After Reserved Instances – $800 per day = A$24,000 per month saved on top.

Total Cost Saving = ~ A$33,300 (38% savings) per month


About sameeraman
I'm a proactive and enthusiastic Microsoft Azure and Identity Consultant working in Perth Australia. My aim is to resolve customer problems and provide them with the best IT systems that satisfy their requirements while maintaining the minimum cost.

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