5 Ways to Optimize Costs on Microsoft Azure Without Sacrificing Performance

5 Ways to Optimize Costs on Microsoft Azure Without Sacrificing Performance
Author: Ashish KumarPublished: 11-Sept-2025

Many companies use Microsoft Azure cloud to run key services. It offers scale, security, and strong global reach. But with all its benefits, cost control is still a major problem. 

Cloud waste is high. Studies show more than 30% of cloud spend is wasted. This waste comes from unused machines, poor storage management, or lack of monitoring. 

Business leaders want to cut costs without hurting service speed. The answer lies in Azure cost optimization. By using smart steps, you can lower spend and keep strong Azure performance. 

This guide will cover five proven ways. It will also explain what is Microsoft Azure, why cost control matters, and how companies can get more value from Azure Microsoft services

What is Microsoft Azure? 

Microsoft Azure is a public cloud platform from Microsoft. It provides over 200 services. These include computing, storage, networking, security, databases, DevOps, and AI. 

Companies use Microsoft Azure cloud computing to run apps, store data, and manage IT systems. It works on a pay-as-you-go model. This means you only pay for what you use. 

Some common uses of Microsoft Azure cloud platform are: 

  • Hosting websites and apps 
  • Running Microsoft Azure SQL Database 
  • Using Microsoft Azure DevOps for projects 
  • Building solutions with Microsoft Azure AI 
  • Storing files with Microsoft Azure storage explorer 
  • Managing security with Microsoft Azure security tools 

The platform is a direct rival to AWS and Google Cloud. Many compare Microsoft Azure vs AWS pricing and features before choosing. 

Why Cost Optimization Matters 

Microsoft Azure pricing is flexible but can grow fast. Without control, monthly bills can shock IT teams. 

Key pain points for businesses are: 

  • Paying for large VMs that run underused 
  • Old backups and storage eating budgets 
  • Long-running workloads billed at pay-as-you-go rates 
  • Lack of visibility into real spend 
  • Difficulty balancing cost with Azure performance 

These problems lead to wasted funds. In 2025, global cloud waste may reach $44 billion. For many, this is money that could go to new projects instead. 

This is why Azure cost saving tips are not just nice to have. They are vital for IT and finance leaders. 

1. Right-Size Virtual Machines 

The biggest cost driver in Azure is virtual machines. Many are oversized or left idle. 

Steps to fix this: 

  • Track machine usage with Azure Monitor 
  • Compare size to actual need 
  • Resize or shut down unused machines 
  • Move workloads to new machine types with better prices 

Azure Advisor provides real insights here. It recommends changes based on real data. Following its advice can cut spend by 20 to 30%. 

Right-sizing does not lower quality. It ensures you match resources to real demand. This keeps Microsoft Azure cloud efficient and cost-friendly. 

2. Use Reserved Instances and Savings Plans 

Some workloads run every day with no breaks. Paying hourly for them is wasteful. 

For these, Azure offers reserved instances. You commit to one or three years. In return, you get up to 72% savings. 

Azure also has savings plans. These apply to compute use and save up to 65%. 

Good fits for reserved or savings plans: 

  • Databases that run 24/7 
  • Core business apps 
  • File servers with steady demand 

These options make Microsoft Azure cloud platform more predictable in cost. Finance teams prefer them because they reduce surprise bills. 

3. Optimize Storage 

Storage is often overlooked in Azure cost optimization. Yet it can consume huge budgets if unmanaged. 

Ways to manage better: 

  • Use hot storage only for active files 
  • Move rarely used data to cool or archive tiers 
  • Delete old logs and backups 
  • Enable lifecycle rules for automatic cleanup 

Tools like Microsoft Azure storage explorer make it easier to track and manage files. 

Archive storage can cost 80% less than hot storage. By moving old files, companies save thousands yearly. 

4. Use Hybrid Benefit and Spot Instances 

Microsoft offers two smart options to cut spend: 

Azure Hybrid Benefit lets you use existing Windows or SQL licenses. This reduces software costs. Companies can save up to 55% on SQL and 40% on VMs. 

Spot instances provide extra savings. These VMs are cheaper but can be interrupted. They are ideal for: 

  • Test environments 
  • Batch processing 
  • Background tasks 

Together, these features provide strong Microsoft Azure optimization. Businesses keep performance where needed and save on flexible tasks. 

5. Monitor with Cost Tools 

Manual checks are not enough for Microsoft Azure pricing. Azure offers built-in tools for better tracking. 

Key tools: 

  • Azure Cost Management + Billing for full reports 
  • Budgets and alerts to warn of overspending 
  • Automation to shut down idle machines 
  • Azure Advisor for tailored tips 

Companies that use these tools save 15 to 25% on average. They also gain better visibility, which is vital for IT and finance teams. 

Extra Step: Build FinOps Practices 

Many companies now adopt FinOps. This is a way to manage cloud costs with shared responsibility. 

With FinOps, IT, finance, and business teams work together. They set budgets, track spend, and enforce rules. 

Some use “FinOps as code”. These are policies that run inside software pipelines. For example, a rule might stop a server at night. This saved one retailer 6% of costs. 

This approach makes Azure cloud cost management part of daily work. 

Microsoft Azure Fundamentals: Building Blocks of Cost Control 

To optimize spend, you must know the basics. Microsoft Azure fundamentals cover: 

  • Resource groups 
  • Regions and zones 
  • Networking rules 
  • Security and compliance settings 
  • Service tiers 

Understanding these helps teams use the right service at the right tier. For example, choosing a lower tier for dev work while keeping production on premium. 

Microsoft Azure Security and Cost 

Strong security is not optional. Many think tighter security means higher cost. But in Azure, smart security can also cut spend. 

Examples: 

  • Turn off unused accounts and access rights 
  • Use managed identity instead of custom keys 
  • Monitor with Microsoft Azure security center 

Good security reduces risk of outages and wasted resources. This supports both cost and performance. 

Microsoft Azure vs AWS: Which is More Cost Friendly? 

Leaders often compare Microsoft Azure vs AWS. Both are strong platforms with wide services. 

Azure is often seen as more cost-friendly for Windows and SQL users. This is due to Hybrid Benefit. AWS may have edge pricing in other areas. 

The real answer depends on workload. Companies should compare services side by side. For many, Microsoft Azure cloud computing offers better savings when optimized. 

Business Benefits of Microsoft Azure Optimization 

By applying these five steps, companies gain: 

  • Lower costs by up to 40% 
  • Better use of existing licenses 
  • Smarter storage with no hidden growth 
  • Predictable spend through reserved plans 
  • Stronger security with controlled access 
  • Clear insights for IT and finance leaders 

These benefits show why cost control is central to long-term Microsoft Azure cloud success. 

Conclusion 

Microsoft Azure cloud platform offers power and flexibility. But without cost control, budgets can spiral. 

The five best steps to reduce Azure costs are: 

  1. Right-size virtual machines 
  1. Use reserved instances and savings plans 
  1. Optimize storage tiers 
  1. Apply Hybrid Benefit and Spot VMs 
  1. Monitor spend with cost tools 

At TeleGlobal International, we help businesses make the most of Microsoft Azure services. We build strategies that cut costs and keep performance strong. Our goal is simple: deliver clarity, savings, and better results for your cloud journey. 


Frequently Asked Questions

1. What is Microsoft Azure? 

It is a public cloud platform offering over 200 services. 

2. What is Microsoft Azure used for?

Hosting apps, databases, AI tools, DevOps, and storage.

3. How do I reduce Azure costs?

Resize VMs, use reserved plans, clean storage, and monitor spend.

4. What is Microsoft Azure pricing like?

Pay-as-you-go, reserved plans, and savings plans offer options for all needs.

5. Is Azure more cost-effective than AWS? 

It depends on workload, but Hybrid Benefit gives Azure an edge for Windows and SQL.

6. What tools support Azure cloud cost management? 

Azure Cost Management, Billing, Advisor, and automation policies. 

7. Can I grow skills in Azure?  

Yes, with Microsoft Azure certifications and training in Microsoft Azure fundamentals. 

Ashish Kumar

Ashish Kumar is the Founder and CEO of TeleGlobal, a forward-thinking IT solutions provider specializing in cloud modernization, Generative AI, and machine learning-driven innovations. With over a decade of experience in enterprise IT and digital transformation, Ashish is passionate about helping businesses leverage technology for scalable growth. Under his leadership, TeleGlobal has emerged as a trusted partner for cloud-native strategies, modernization roadmaps, and AI integration. He regularly shares insights on digital strategy, cloud architecture, and the evolving landscape of intelligent automation.

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