What is Azure cost optimisation?

Azure cost optimisation is the strategic process of reducing cloud infrastructure expenses while maintaining or improving performance, security, and scalability. It involves right-sizing resources, eliminating waste, leveraging discounts, implementing automation, and continuously monitoring spending patterns to align cloud costs with business value.

How much can companies typically save with Azure cost optimisation?

Organizations typically achieve 20-40% cost reductions through systematic Azure optimisation efforts. According to Microsoft's own data, companies using Azure Cost Management tools save an average of 30% on their cloud bills. However, actual savings vary based on current infrastructure efficiency, workload types, and implementation rigor. Some enterprises with highly inefficient setups have achieved savings exceeding 50%.

<strong>Should we use reserved instances or pay-as-you-go pricing?</strong>

Use Reserved Instances (1-year or 3-year commitments) when your production environments run continuously or predictably and you can commit to specific VM sizes and regions. Go for pay-as-you-go when you value your flexibility, your workloads are experimental or temporary (dev/test) and in case your requirements change frequently.

What role does automation play in Azure cost optimisation?

Automation is essential for sustainable cost optimisation. Key automated strategies include: Auto-shutdown schedules, auto-scaling, lifecycle policies, etc.