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name: azure-cost-optimizer description: Analyzes Azure costs and provides optimization recommendations including reserved instances, rightsizing, and unused resources. Use when optimizing Azure spending or analyzing Azure costs.

Azure Cost Optimizer

Quick Start

Analyze Azure costs and implement optimization strategies to reduce spending while maintaining performance.

Instructions

Step 1: Analyze current costs

Copy# View cost analysis
az cost-management query \
  --type Usage \
  --dataset-aggregation name="PreTaxCost" function="Sum" \
  --dataset-grouping name="ResourceGroup" type="Dimension"

# View costs by service
az cost-management query \
  --type Usage \
  --dataset-grouping name="ServiceName" type="Dimension"

Step 2: Identify optimization opportunities

Check for unused resources:

• Unattached disks
• Idle virtual machines
• Unused public IPs
• Orphaned network interfaces

Review resource utilization:

• VM CPU and memory usage
• Database DTU utilization
• Storage account access patterns
• Network bandwidth usage

Step 3: Implement cost-saving measures

Reserved Instances:

• 1-year or 3-year commitments
• Up to 72% savings vs pay-as-you-go
• Recommended for stable workloads

Azure Hybrid Benefit:

• Use existing Windows Server licenses
• Use existing SQL Server licenses
• Significant cost savings

Rightsizing:

• Downsize overprovisioned VMs
• Adjust database tiers
• Optimize storage tiers

Spot VMs:

• Up to 90% savings
• Suitable for interruptible workloads
• Batch processing, dev/test

Advanced

For detailed information, see:

• Pricing Models - Azure pricing tiers and models
• Reserved Instances - RI recommendations and strategies
• Rightsizing - VM and resource sizing guidance