Managing costs in the cloud is an essential part of running efficient operations, especially when resources like Azure Virtual Machines (VMs) can be a significant part of your infrastructure expense and running Azure Virtual Machines unnecessarily can lead to higher costs.
Imagine a software development team working on a test environment hosted on Azure.
Developers typically work from 9 AM to 6 PM. If the Virtual Machines are left running overnight or over the weekend, the business incurs unnecessary costs.
Cost Saving in Azure is similar like if you leave your house lights on when you’re not at home. Not only does it increase your electricity bill, but it’s also wasteful.
With Azure Virtual Machines, you can "pause" the resources to avoid charges when you don't need them, but only if you know the right way to do it.
Understanding how to properly stop Azure VMs can save you a lot of money.
Let’s explore how to Save Cost
Here’s where the terminology gets tricky for new Azure users.
Stopping a VM doesn't necessarily mean you stop incurring VM costs. Let’s break it down:
When you shut down the Azure VM via the operating system, as shown below, The Azure VM goes into a stopped State.
In this state, you continue to incur charges for:
This state has no cost savings, as physical resources like CPU/RAM are still allocated to your Azure VM.
Think of it as if you’ve checked out of the hotel room but left your luggage behind; the room stays reserved, and you’re still charged for it.
This state is achieved by stopping the VM from the Azure portal as shown below or using command Line like Azure CLI or Azure PowerShell
In this state, you continue to incur charges for:
This state offers cost savings, as the physical resources like CPU/RAM are released back to Azure, and you will not be charged for Azure VM.
But You will continue to incur charges for storage associated with the VM
Think of It as You’ve checked out of the hotel room, removed your luggage, and released the room for someone else now, with no more charges
Cost optimization in Azure starts with understanding the difference between the Stopped and Stopped (Deallocated) states. To avoid unnecessary charges, always ensure that unused VMs are stopped-deallocated.
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