{"id":11512,"date":"2022-01-27T15:43:04","date_gmt":"2022-01-27T23:43:04","guid":{"rendered":"https:\/\/threecloud.wpengine.com\/?p=11512"},"modified":"2023-08-21T10:16:18","modified_gmt":"2023-08-21T17:16:18","slug":"the-easiest-way-to-save-with-cloud-azure-cost-management-comparison","status":"publish","type":"post","link":"https:\/\/3cloudsolutions.com\/resources\/the-easiest-way-to-save-with-cloud-azure-cost-management-comparison\/","title":{"rendered":"The Easiest Way to Save with Cloud: Azure Cost Management Comparison"},"content":{"rendered":"

When it comes to optimizing your cloud environment, the\u00a0most straightforward\u00a0techniques\u00a0come\u00a0not from the technical pieces of the environment but\u00a0Azure cost management\u00a0and\u00a0evaluation of\u00a0Azure pricing.\u00a0\u00a0<\/span><\/p>\n

<\/p>\n

As we learned in our guide:\u00a03 Ways to Purchase Microsoft Azure,\u00a0Azure services\u00a0are priced in three different categories \u2013\u00a0<\/span><\/p>\n

    \n
  1. Enterprise Agreements (EA)\u00a0<\/span><\/li>\n
  2. Pay as You Go (PAYGO)\u00a0<\/span><\/li>\n
  3. Cloud Solution Provider (CSP)\u00a0<\/span><\/li>\n<\/ol>\n

    What a lot of\u00a0people\u00a0don’t\u00a0know\u00a0is that\u00a0pricing varies by zone.\u00a0So, for\u00a0example, components that you may install in US East\u00a0may\u00a0be\u00a0more\u00a0expensive than if you deployed\u00a0them\u00a0in US West\u00a0but\u00a0less expensive\u00a0in US\u00a0Central West.\u00a0So\u00a0location and zoning are two things to consider when it comes to Azure cost management.\u00a0<\/span><\/p>\n

    3 Types of Payment Models Explained<\/strong>\u00a0<\/span><\/h4>\n

    The\u00a0buying mechanism\u00a0with\u00a0the fewest\u00a0benefits\u00a0yet\u00a0most accessible\u00a0set up is\u00a0Pay\u00a0as You Go<\/strong>. With this\u00a0model,\u00a0you can\u00a0start consuming Azure with your credit card.\u00a0You\u00a0can configure your environment, set up a subscription, and before you know it,\u00a0you can have resources up and running and spinning in Azure.\u00a0<\/span><\/p>\n

    Pay as You Go, however, is not rich in discounts or cost savings. While it’s easy to onboard yourself with Microsoft cloud storage and Azure cloud services, it’s easy to spend more than you intend. Pay as You Go also lacks technical benefits as well. Services for incidentals, optimizations, and reconfigurations are minimum without additional fees. If you select Pay as You Go, we recommend working with a consulting partner like 3Cloud to help assess the current state of your environment and make recommendations based on your Azure database storage needs, budget, and desired end-state.\u00a0\u00a0<\/span><\/p>\n

    Would you want $20,000 – $25,000 on your credit card every month?\u00a0Unfortunately, that’s the reality for businesses leveraging this model.\u00a0As a result, we typically see an unintentional 2X increase in spend with customers who use this model\u00a0before\u00a0collaborating with a cloud architect.\u00a0\u00a0<\/span><\/p>\n

    Enterprise Agreement<\/strong>\u00a0(EA)\u00a0is\u00a0the option\u00a0with the\u00a0most significant\u00a0discounts,\u00a0but the trade-off is you need to commit to a\u00a0specific\u00a0spending level.\u00a0If\u00a0you’re in a scenario where you’ve been in Azure for a long time, you know exactly what your spending\u00a0is, so\u00a0you know how to avoid overspending\u00a0or under-spending,\u00a0for that matter.\u00a0\u00a0<\/span><\/p>\n

    Going into an EA is\u00a0not\u00a0ideal\u00a0if you’re just now putting things into Azure and you’re not exactly sure what it’s going to\u00a0look like\u00a0because if you commit. For\u00a0example, to that $25,000 a month I mentioned\u00a0earlier,\u00a0if\u00a0you only hit $15,000, you’re still going to\u00a0pay $25,000 a month.\u00a0So\u00a0it’s better to, in\u00a0the\u00a0beginning,\u00a0stage,\u00a0optimize it and determine where your spending\u00a0is\u00a0going\u00a0to\u00a0be.\u00a0<\/span><\/p>\n

    The last option is\u00a0Cloud Service Provider<\/strong><\/a> (CSP). CSP Partners like 3Cloud can mitigate billing issues and escalate matters for you through Microsoft. A CSP can support other ways through an initial level of technical support, recommendations for deployment techniques, and ways to optimize your cloud instance.\u00a0\u00a0<\/span><\/p>\n

    Payment Models\u00a0Compared<\/span>\u00a0<\/span><\/h4>\n

    <\/span><\/p>\n

    Table 1: Example of Cost Projection by Payment Model<\/em><\/span><\/p>\n

    Scenario: A customer initially budgets $20,000 per month for their cloud instance. For Pay-as-you-Go, the customer may start out under budget, but due to the lack of optimizations and visibility, payments go over budget during months 2 and 3.<\/span><\/p>\n

    With an Enterprise Agreement, another customer sees a steady number for months 1 through 3, but it\u2019s more than they initially budgeted and is constant no matter how much storage is used. The inflexible nature of the agreement causes them to overpay overall because the cost isn\u2019t the right fit for their usage.<\/span><\/p>\n

    Lastly, the customer leveraging a Cloud Service Provider (CSP) has the most flexible payment model. After working with a partner like 3Cloud to ensure the environment is set up properly in month 1, the customer stays well under budget while also having slight variance month to month as their usage changes from a variety of factors.<\/span><\/p>\n

    Next up: Learn the top 4 qualities to look for in a cloud partner<\/a> with this blog and get started with optimizing your cloud environment today!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

    When it comes to optimizing your cloud environment, the\u00a0most straightforward\u00a0techniques\u00a0come\u00a0not from the technical pieces of…<\/p>\n","protected":false},"author":69,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[290,354,278],"tags":[284,391],"class_list":["post-11512","post","type-post","status-publish","format-standard","hentry","category-cloud-platform","category-infrastructure-cloud-platform","category-managed-services","tag-azure","tag-csp","topics-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/posts\/11512","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/users\/69"}],"replies":[{"embeddable":true,"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/comments?post=11512"}],"version-history":[{"count":0,"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/posts\/11512\/revisions"}],"wp:attachment":[{"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/media?parent=11512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/categories?post=11512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/tags?post=11512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}