Microsoft Azure Cloud — Undersanding Cloud Pricings

Amir Mustafa
4 min readOct 17, 2022

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→ Cloud pricing is hard to predict. In this article, we will look at various factors for Azure Cloud pricing.

→ Based on the resource type pricing may vary. Some of the resource types are:

a. On-Premise: Normally company/businesses here have purchased their own hardwares and rent softwares from the cloud.

b. FAAS: This stands for Function as a Service. Normally no additional servers are required for running Azure functions.

c. PAAS: This stands for Platform as a Service. Here basically OS is ready to be used.

d. SAAS: This stands for Software as a Service. Here Ready software is rented by the cloud team to be used directly.

→ The idea to know the above resources are pricing varies based on the above type of resources.

→ The easiest way to predict the bill is for on-premise resources:

a. own hardware — no cost

b. Wifi — fixed cost

c. cooling — fixed cost

d. Cloud Services — some predicted cost

→ Let us see an example. If we are using Azure database:

Cosmos DB:

→ Cost will vary based on below factors:

Let us now see various factors on which Azure pricing on bills comes:

1. Free Services:

→ Yes, Microsoft Azure has free services and can be used. Some of them are listed below:

a. Azure Function (similar to AWS Lambda Function)

b. Azure Policy (creating multiple policies for the Azure services),

c. Running a blog in Azure app service for free, etc.

2. Pay for Time:

→ There are several services that generate bills based on the time we use it

eg. Virtual Machine, App services, databases, load balancers, managed storages, public IPs

→ These services are above the free tier.

3. Pay per GB:

→ This bill generates based on the quantity of storage.

→ Anything to do with storage or traffic comes under this category.

eg. sending traffic between regions. Sending traffic from Asia to America, doing regular backups, etc.

→ So we pay for the GB for the traffic it travels.

4. Pay per Operations:

→ In some cases we will be charged per operation.

→ These are generally bulked together so we are paying for the operations:

eg. 10,000 requests, per million requests etc.

→ In the case of storage there will be charges for:

a. Reads, writes and deletes for things like that.

b. Database queries

c. Messaging in Queues (similar to Amazon SQS service)

5. Pay per Executions:

→ There are several serverless operations that cost per executions

Some of them are –

a. Azure Functions (similar to AWS Lambda Functions) — first 1 million per month free. So even if we have a code that runs once a month then it is free.

b. Serverless Databases

c. Messaging Services

d. Logic Apps

→ So what we are trying to understand here various metrics based on which Microsoft charges bills.

5. Other Metrics for Bills charges:

→ Some are paid based on users, some on the geographical region of the services

Eg. Services running in North America can be more reasonable based on South America.

→ If saving money for Azure bill is the goal, then we can keep in geographical data centres that are having a low prices.

Eg. storing a file in some other region.

Closing Thoughts:

In this article, we understood various ways by which Microsoft charges for using Azure services. It is important to understand why our bills are charged and hence we use services in a more optimized way.

Thank you for reading till the end 🙌 . If you enjoyed this article or learned something new, support me by clicking the share button below to reach more people and/or give me a follow on Twitter and subscribe Happy Learnings !! to see some other tips, articles, and things I learn about and share there.

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Amir Mustafa
Amir Mustafa

Written by Amir Mustafa

JavaScript Specialist | Consultant | YouTuber 🎬. | AWS ☁️ | Docker 🐳 | Digital Nomad | Human. Connect with me on https://www.linkedin.com/in/amirmustafa1/

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