Mo's Blog.

Billing and Cost Planning in Cloud

Most providers:

  • Pay as you go pricing modelPay as you go pricing model* No upfront costs and pay for what you use * Scale resources as needed for cost optimization Status: #idea Tags: az-900, azure, Cloud, cloud-billing, ccp, aws, gcp, google-cloud-engineer References
  • Reservations or Committed Use DiscountsReservations or Committed Use DiscountsCommit for 1 year or 3 year plans for cost reduction * Like advanced hotel booking * Secures space at lower rates * Ensures availability on arrival * Avoids premium on-the-spot rates Use case: * consistent resource usage / workloads with predictable resource needs * long-term projects How reservation works in Azure: * Save up to 72% off pay-as-you-go How reservation/committed use discounts works in GCP: Up to 70% discount** based on machine type and GPUs Applicable* for ins
  • Spot InstancesSpot InstancesHow Spot Instances works in Azure: * Buy unused compute capacity for VMs at savings * Ideal for interruptible workloads No specific completion time** needed How Spot Instances works in GCP: Spot VMs**: Latest version of preemptible VMs Key Difference**: Does not have a maximum runtime * Compared to traditional preemptible VMs which have a maximum runtime of 24 hours * Other features similar to traditional preemptible VMs * May be reclaimed at any time with 30-second notice * NOT al
  • Preemtible InstancesPreemtible InstancesHow Preemtible Instances works in GCP: Short-lived cheaper* (upto 80%) *compute instances * Can be stopped by GCP any time (preempted) within 24 hours * Maximum time for running is 24 hours * Instances get 30 second warning (to save anything they want to save) Use Preempt VM's** if: * Your applications are fault tolerant * You are very cost sensitive * Your workload is NOT immediate * Example: Non immediate batch processing jobs RESTRICTIONS: * NOT always available * NO SLA and

How billing works in GCP:

  • Sustained use discountsSustained use discountsAutomatic discounts* for running *VM instances for significant portion of the billing month * Example: If you use N1, N2 machine types for more than 25% of a month, you get a 20% to 50% discount on every incremental minute. * Discount increases with usage (graph) sustained-disc-gcp.png * No action required on your part! Automatically applied by the platform itself Applicable* for instances created by *Google Kubernetes Engine and Google Compute Engine RESTRICTION*: Does NOT apply on ce
  • Google Compute Engine - BillingGoogle Compute Engine - Billing* You are billed by the second (after a minimum of 1 minute) * You are NOT billed for compute when a compute instance is stopped * However, you will be billed for any storage attached with it! * (RECOMMENDATION) Always create *Budget* alerts and make use of Budget exports to stay on top of billing! * What are the ways you can save money? * Choose the right machine type and image for your workload * Be aware of the discounts available: * Sustained use discounts * Reservations or Co

How billing and planning costs works in Azure:

  • Azure Free AccountAzure Free Account* New Azure users get some services free for first 12 months * No initial financial commitment needed * Select resources free indefinitely * Always review pricing for budgeting Status: #idea Tags: az-900, azure, Cloud, cloud-billing References
  • Azure Hybrid BenefitAzure Hybrid Benefit* Allows you to reuse on-premises licenses that already exist * Results in substantial savings * Avoid new purchase costs * Maximize existing investments * Easier migration due to familiar setup Status: #idea Tags: az-900, azure, Cloud, cloud-billing References
  • Azure Pricing CalculatorAzure Pricing Calculator* Estimate costs with pricing calculator * Specify needs for accurate estimates * Customizable options for budgeting * Simulate scenarios for cost-effectiveness * Optimize cloud spending with detailed breakdowns Similar to AWS Price Calculator Status: #idea Tags: az-900, azure, Cloud, cloud-billing References
  • Total Cost of Ownership CalculatorTotal Cost of Ownership Calculator- Focuses on long-term value * Estimates savings with Azure migration * Also considers: * operational benefits * reduced downtime risks * scalability options Status: #idea Tags: az-900, azure, Cloud, cloud-billing References
  • Azure Cost Management DashboardAzure Cost Management Dashboard* Use centralized dashboard to monitor costs * Apply budget caps for optimization * Analyze costs by service, resource group * Pinpoint high cost resources Status: #idea Tags: az-900, azure, Cloud, cloud-billing References
  • Azure AdvisorAzure Advisorprovide personalized recommendations to manage deployments efficiently based on usage and insights on cost-efficiency and performance Benefits: * Regularly review costs to avoid waste * Turn off underutilized resources * Personalized cloud consultant * Provides best practice recommendations * Helps you optimize Azure resources * Aims to improve performance, increase security, and enhance reliability Similar to AWS Trusted Advisor ?? Status: #idea Tags: az-900, azure, Cloud

Status: #idea
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