NashTech Insights

7 Practical Tips to Save Azure Costs

Rahul Miglani
Rahul Miglani
Table of Contents
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As organizations increasingly migrate to the cloud, managing costs becomes a crucial aspect of cloud adoption. Azure, Microsoft’s cloud computing platform, offers a multitude of services and features, which, if not properly optimized, can result in unnecessary expenses. In this blog, we will explore seven practical tips to help you optimize and save costs on Azure without compromising performance or functionality.

Rightsize Your Resources:

One of the most effective ways to reduce Azure costs is rightsizing your resources. Regularly assess the utilization of your virtual machines (VMs), databases, storage accounts, and other resources to identify overprovisioned or underutilized instances. Azure provides tools like Azure Advisor and Azure Monitor, which offer insights and recommendations to help you determine the appropriate size for your resources based on historical usage data.

Implement Cost Management Tools:

Azure offers robust cost management and monitoring tools to gain visibility into your cloud spending. Utilize Azure Cost Management and Billing to track and analyze costs, set budgets, and receive alerts when spending exceeds predefined thresholds. By understanding your consumption patterns, you can identify areas where costs can be optimized, enabling you to make informed decisions.

Leverage Azure Reserved Instances (RI):

Azure Reserved Instances allow you to save costs by committing to a one- or three-year reservation for virtual machines. By making an upfront payment, you can avail significant discounts compared to on-demand pricing. Analyze your workload requirements and identify instances that have long-term usage to maximize savings with Azure RI.

Utilize Azure Hybrid Benefit:

If you have an existing on-premises Microsoft software license, Azure Hybrid Benefit allows you to apply your license towards virtual machines in Azure. This benefit provides substantial cost savings, as you only pay the base compute rate, excluding the licensing cost. By leveraging Azure Hybrid Benefit, you can effectively optimize costs while migrating your on-premises workloads to Azure.

Implement Autoscaling:

Autoscaling enables your applications to dynamically adjust resources based on demand. By automatically scaling up or down the number of virtual machines or instances, you can optimize costs by utilizing resources only when needed. Azure provides various autoscaling options, including virtual machine scale sets, Azure App Service, and Azure Kubernetes Service (AKS), empowering you to achieve elasticity while minimizing costs.

Optimize Storage Costs:

Azure offers several storage options, each with its own pricing model. Evaluate your storage requirements and choose the appropriate storage tier based on your data access patterns. Utilize features like Azure Blob storage lifecycle management, which automatically moves data to cheaper storage tiers as it ages, reducing costs over time. Additionally, consider compressing and deduplicating data to minimize storage consumption.

Monitor and Control Network Traffic:

Network egress costs can contribute significantly to your overall Azure expenses. Implement network traffic monitoring to identify and optimize data transfer patterns. Utilize Azure Traffic Manager or Azure Front Door to route traffic efficiently and reduce the need for cross-region transfers. By optimizing your network traffic, you can effectively lower costs while maintaining high availability and performance.


As cloud adoption continues to grow, optimizing and saving costs on Azure becomes increasingly important. By rightsizing resources, leveraging cost management tools, utilizing reserved instances, leveraging Azure Hybrid Benefit, implementing autoscaling, optimizing storage costs, and monitoring network traffic, organizations can achieve substantial savings without compromising performance or functionality. Regularly assess and optimize your Azure infrastructure to ensure you are maximizing cost efficiencies while benefiting from the flexibility and scalability of the cloud.

Rahul Miglani

Rahul Miglani

Rahul Miglani is Vice President at NashTech and Heads the DevOps Competency and also Heads the Cloud Engineering Practice. He is a DevOps evangelist with a keen focus to build deep relationships with senior technical individuals as well as pre-sales from customers all over the globe to enable them to be DevOps and cloud advocates and help them achieve their automation journey. He also acts as a technical liaison between customers, service engineering teams, and the DevOps community as a whole. Rahul works with customers with the goal of making them solid references on the Cloud container services platforms and also participates as a thought leader in the docker, Kubernetes, container, cloud, and DevOps community. His proficiency includes rich experience in highly optimized, highly available architectural decision-making with an inclination towards logging, monitoring, security, governance, and visualization.

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