Microsoft Azure offers organisations exceptional flexibility, scalability, and access to cutting-edge cloud technologies.
However, without a clear strategy, cloud expenses can quickly escalate, leading to wasted budget and decreased ROI. For medium to large organisations aiming to operate efficiently, proactive cost control is essential.
As cloud experts and a Microsoft partner, Akita has put together 10 simplified strategies for reducing Azure costs while maximising operational performance:
1. Right-size Your Resources
Many organisations unintentionally over-provision virtual machines (VMs) and services “just in case”. While caution is understandable, it often leads to paying for unused capacity. Regularly reviewing usage metrics and adjusting resource sizes ensures you only pay for what you truly need. Azure Advisor can help by recommending right-sizing opportunities based on actual usage.
2. Implement Auto-scaling
Azure’s auto-scaling capabilities allow organisations to automatically adjust compute resources based on real-time demand. This prevents over-provisioning during quiet periods and ensures availability during peak times, delivering both cost savings and enhanced performance.
3. Use Reserved Instances
For predictable workloads, Azure Reserved Instances (RIs) offer substantial savings compared to pay-as-you-go models. Committing to a one- or three-year term can lead to up to 72% savings. Reserved capacity is ideal for core systems or services that have consistent usage patterns.
4. Shut Down Unused Resources
It’s common for development, testing, or demo environments to be left running outside working hours. Scheduling automated shutdowns for these non-production resources can deliver immediate and significant cost reductions. Azure Automation and Logic Apps are useful tools for managing these schedules.
5. Optimise Storage Costs
Storage expenses can be a silent drain on cloud budgets. Not every file or dataset requires premium storage. Categorising data and moving infrequently accessed items to Azure’s “cool” or “archive” storage tiers can drastically cut costs without compromising accessibility.
6. Take Advantage Of Azure Hybrid Benefit
If your organisation already holds Windows Server or SQL Server licences with Software Assurance, you can leverage Azure Hybrid Benefit. This allows you to use your existing licences in Azure, reducing VM and SQL Database costs by up to 85% in some cases.
7. Implement Cost Management Tools & Reporting
Visibility is the first step toward optimisation. Azure Cost Management + Billing provides organisations with comprehensive tools to track spending, set budgets, forecast future costs, and identify unusual activity. Proactive cost tracking enables better decision-making and early intervention if spending trends rise.
8. Review and Consolidate Resources
Over time, organisations accumulate resources that become redundant or underutilised. Regular audits of your Azure environment can identify opportunities to consolidate workloads or decommission unnecessary services. This not only reduces costs but also improves overall governance and security.
9. Choose the Right Pricing Model For Your Workloads
Certain workloads — such as batch processing, data analysis, or rendering jobs — may tolerate interruptions. For these, Azure Spot VMs offer significant cost savings compared to traditional VMs. Aligning workloads to the most appropriate pricing models maximises cost-efficiency without sacrificing operational effectiveness.
10. Outsource Management Of Azure
Staff who are well-versed in Azure best practices make smarter resource decisions. But they come at a premium. Choosing an outsourced Azure partner can ensure that costs stay low while also
Reducing Azure Costs With Akita
Azure cost management is an ongoing discipline, not a one-time exercise. As organisations increasingly rely on cloud services, continual review and optimisation are critical to staying competitive and financially efficient.
At Akita, we partner with organisations to deliver strategic management and proactive Azure cost management. Through expert insight, best practice management methods, and operational governance, we help ensure organisations’ Azure environments deliver maximum value at minimum cost.
Looking to gain better control over your Microsoft cloud spend? Contact Akita today to discover how our expertise can assist in reducing Azure costs for your organisation:
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