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💸 FinOps in Azure: Effective Cost Management

Access the Power BI Cost Summary Report to explore real-time insights into Azure spending and trends. This is a report for JTI MDC team.

Welcome to the Azure FinOps Hub — your central resource for managing cloud costs efficiently across JTI. This guide outlines tools, strategies, and best practices to help teams reduce waste, optimize spending, and align cloud usage with business goals.

🛠️ Core Tools for Azure Cost Management​

🔹 Power BI Cost Summary Report​

An interactive dashboard that provides deep visibility into Azure spending.

Key Features:

  • Visual breakdown of costs by service and resource group.
  • Drill-down capabilities by tags, services, and resource groups.
  • Integrated with FinOps Hubs for cross-functional insights.

Benefits:

  • Identifies cost drivers and trends.
  • Supports anomaly detection and optimization planning.

🔹 Azure Cost Management + Billing​

Microsoft’s native tool for tracking and managing Azure expenses.

Key Features:

  • Budgeting, forecasting, and alerting.
  • Cost allocation and chargeback support.

Benefits:

  • Enables proactive financial governance.
  • Promotes accountability across teams.

🔹 Azure Advisor​

A recommendation engine for performance, security, and cost.

Key Features:

  • Identifies idle or underutilized resources.
  • Suggests cost-saving actions.

Benefits:

  • Drives efficiency through actionable insights.
  • Reduces unnecessary cloud spend.

🔹 Governance & Orphan Resources Workbooks​

Custom workbooks that surface optimization opportunities.

Key Features:

  • Detect orphaned resources (e.g., unattached disks, unused IPs).
  • Highlight misconfigurations and inefficiencies.

Benefits:

  • Improves visibility into waste.
  • Supports cleanup and decommissioning efforts.

📉 Trend Analysis & Anomaly Detection​

Monitoring cost trends and identifying anomalies is essential for continuous optimization.

Where to Analyze:

  • Cost by Service: Spot spikes in specific Azure services.
  • Cost by Resource Group: Track project-level cost fluctuations.

How to Use:

  • Use filters to select timeframes (e.g., last 30 days).
  • Examine accumulated cost charts for unusual patterns.
  • Drill into services or resource groups with unexpected changes.
  • Cross-reference with deployments, incidents, or architectural changes.
  • Document findings and share with relevant teams.

🧠 Optimization Strategies by Azure Service​

🖥️ Virtual Machines (VMs)​

  • Right-size VMs: Match VM size to workload.
  • Use Reserved Instances & Savings Plans: Commit for discounts.
  • Leverage Spot VMs: For interruptible workloads.
  • Auto-shutdown: Schedule off-hours shutdowns.
  • Apply Azure Hybrid Benefit (AHUB): Use existing licenses.
  • Remove orphaned disks/NICs: Clean up unused resources.

📦 Azure Storage​

  • Upgrade to v2 accounts: Unlock tiering features.
  • Implement lifecycle policies: Automate data tiering.
  • Use archive storage: For infrequently accessed data.
  • Delete unused data: Regularly audit and clean up.
  • Enable compression: Reduce storage footprint.

🧮 Azure SQL Database​

  • Use Elastic Pools: Share resources across databases.
  • Auto-pause serverless DBs: Save during inactivity.
  • Tune performance: Optimize queries and indexes.
  • Remove orphaned pools: Decommission unused resources.

🌐 Azure App Services​

  • Choose the right pricing tier: Avoid overprovisioning.
  • Enable auto-scaling: Adjust to demand.
  • Use staging slots: Replace separate test environments.
  • Disable Always-On when not needed: Especially for dev/test.
  • Consolidate plans: Reduce fragmentation.

⚙️ Serverless (Functions)​

  • Optimize code: Reduce execution time.
  • Set timeouts: Prevent overcharges.
  • Use consumption plans: Pay only for what you use.
  • Remove unused functions: Clean up regularly.

🐳 Containers & AKS​

  • Optimize node sizing: Match VM size to workload.
  • Enable autoscaling: Scale nodes dynamically.
  • Use spot nodes: For non-critical workloads.
  • Remove orphaned resources: Clean up unused disks, IPs, configs.

✅ Best Practices for FinOps Success​

  • Review costs regularly using Power BI and Azure tools.
  • Set budgets and alerts to stay within limits.
  • Collaborate across teams to align usage with business needs.
  • Document and share findings to build a culture of cost awareness.