Understanding Azure Storage Cost Options

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Posted Nov 13, 2024

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Azure Storage offers a range of cost options to suit different needs and budgets. You can choose from Hot, Cool, and Archive storage tiers to optimize costs based on data access frequency.

Hot storage is ideal for frequently accessed data, with a higher cost per GB to ensure low latency and high throughput. This tier is suitable for applications that require rapid data retrieval.

Cool storage is a more cost-effective option for less frequently accessed data, with lower latency and higher storage costs compared to Hot storage. This tier is suitable for data that's accessed occasionally.

Archive storage is the most cost-effective option for long-term data storage, with the lowest cost per GB but the highest latency and storage costs. This tier is suitable for data that's not frequently accessed or retrieved.

Azure Storage Cost Options

Azure Storage offers several cost options to suit different needs. The Archive tier is the lowest cost option, but it can take up to 15 hours to rehydrate 10-GiB files.

Credit: youtube.com, Azure Pricing Calculator - Storage

The Cool tier offers a near real-time read latency with a lower price than the Hot tier, making it a good choice for workloads that require quick data access. The cost of storing data in the Cool tier is $0.0115 per GB, which is lower than the Hot tier's $0.0208 per GB for the first 50 TB.

The cost of Azure Storage also depends on the type of operations performed. Write operations cost $0.000011 per operation in the Archive tier, $0.000018 per operation in the Cold tier, and $0.00001 per operation in the Cool tier. Read operations cost $0.00055 per operation in the Archive tier, $0.00001 per operation in the Cold tier, and $0.000001 per operation in the Cool tier.

Here's a summary of the costs associated with each tier:

Pay-As-You-Go

Pay-As-You-Go is an ideal pricing model for dynamic or unpredictable workloads. This model charges you for what you use, with no upfront commitment.

Credit: youtube.com, Microsoft Fabric Cost Breakdown: Capacity, Storage, Transfer & Azure Calculator| F64| Pay as you Go

Charges are based on storage capacity, transactions, and data egress. Specific rates vary by storage tier (Hot, Cool, Archive).

With Pay-As-You-Go, you only pay for the resources you consume, which can help you save money. However, without careful monitoring and management, costs can quickly escalate.

Here's a breakdown of the pricing factors for each tier:

Keep in mind that these prices are sample prices and may not reflect your actual costs. For official prices, see the Azure Blob Storage pricing or Azure Data Lake Storage pricing pages.

Archive vs. Storage Options

If you're considering storing data in Azure, you have several options to choose from, each with its own set of benefits and drawbacks. Archive storage is the lowest cost tier, but it can take up to 15 hours to rehydrate 10-GiB files.

One key consideration when deciding between archive and cool storage is the cost. According to the sample prices provided, archive storage costs $0.0020 per GB per month, while cool storage costs $0.0045 per GB per month. However, archive storage has a much higher cost to read, at $0.022 per GB, compared to cool storage's $0.01 per GB.

Consider reading: Azure Archives

Credit: youtube.com, Azure Storage Account | Blob Hot vs Cool vs Archive | Optimize Costs with Azure

The table below compares the costs of archive, cool, and cold storage, based on a monthly ingest of 200,000 files totaling 10,240 GB in size. This assumes 1 read each month about 10% of stored capacity (1,024 GB), and 10% of total operations (20,000).

As you can see, the cost of cool storage is lower than that of archive storage, but it's still higher than cold storage. However, cool storage offers near real-time read latency, which may be a better fit for workloads that require quick data access.

It's worth noting that archive storage has a 180-day early deletion period, while cool storage has a 30-day early deletion period. This means that if you move data to the archive tier and then delete it or move it to the hot tier within 180 days, you'll be charged for the early deletion period.

Cost Models

Azure's pricing models can feel overwhelming, but understanding them is key to optimizing your storage costs. By aligning your storage strategy with the right pricing model, you can reduce waste and optimize spend on an ongoing basis.

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There are multiple storage pricing models in Azure, and each has its own benefits and drawbacks. You can calculate the cost of writing to the archive tier by multiplying the number of write operations by the price of each operation. The price of an operation depends on which ones you use to write data to the archive tier.

Operations are billed per 10,000, so if the price per 10,000 operations is $0.10, then the price of a single operation is $0.00001. This means that writing 30,000 blobs to the archive tier would cost $0.10, or $0.002 per operation if you use the Put Block and Put Block List operations.

The cost to store data in the archive tier is calculated by multiplying the size of the data in GB by the price of archive storage. For example, storing 10 TB to the archive tier would cost $20.48 per month at a price of $0.002 per GB.

Expand your knowledge: Linode Block Storage

Spot

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Spot is a storage pricing option that enables you to take advantage of surplus Azure storage capacity at huge discounts.

You can use spot pricing for non-critical, interruptible workloads, where you don't mind if your workload is evicted with very little notice.

Azure's spot pricing can offer massive savings, making it a great option if you need cheap capacity.

Consumption-Based

Consumption-based is a cost model that's similar to pay-as-you-go, but tailored to specific services like Azure Backup or Azure Site Recovery. Charges are based on the actual service usage, including storage and operations.

This approach helps with Azure storage cost optimization efforts for specific scenarios, ensuring you only pay for what you actually use. It's a great way to avoid unnecessary expenses and make the most of your budget.

Consumption-based pricing can be beneficial for services that have varying usage patterns, such as Azure Site Recovery. You only pay for the services you use, and not for any idle capacity.

Expand your knowledge: Azure Storage Services

Credit: youtube.com, AZ-900 Episode 4 | Consumption-based Model | Microsoft Azure Fundamentals Course

To take advantage of consumption-based pricing, consider using Azure services like Azure Backup or Azure Site Recovery. These services are designed to help you optimize your storage costs and reduce waste.

By using consumption-based pricing, you can gain more granular cost insights, such as Cost per Customer, Cost per Environment, and Cost per Feature. This can help you make informed decisions about your Azure storage costs and optimize your budget accordingly.

Optimization Strategies

Optimizing Azure storage costs requires a multifaceted approach.

Automate data tiering to ensure you pay the lowest possible storage rate based on access frequency. You can set up policies to move blobs from the Hot tier to the Cool tier after a certain period, and even to the Archive tier after 180 days.

Use Azure's Data Lifecycle Management to automate the movement of data to the most cost-effective storage tier.

Regularly review and adjust Azure storage resources to match your actual needs to avoid over-provisioning and waste.

You might enjoy: What Is Azure Storage

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Consider scaling down resources, such as a VM, if it consistently uses less than 100% of its allocated resources.

Minimize data transfer costs by hosting your data and applications in the same region where it is processed.

Here are some additional strategies to keep in mind:

By implementing these strategies, you can optimize your Azure storage costs and make the most of your cloud storage fees.

Cost Management Tools

Cost Management Tools can help you track and manage your Azure storage costs. Traditional Azure cloud cost management tools, such as Azure Cost Management + Billing, rely on tags to track usage and associated costs across Azure services.

To get started, you can use the Azure Pricing Calculator to estimate your expected monthly costs. This tool allows you to calculate costs for any combination of Azure products.

Azure offers a suite of native cloud cost management tools, including the Azure Pricing Calculator, Azure Budgets, and Cost Management + Billing. These tools provide insights into your spending, helping you set budgets and alerts to manage costs on an ongoing basis.

Credit: youtube.com, Azure Cost Management Tool to Analyze and Optimize Azure Costs

Here are some key features of Azure Cost Management + Billing:

  • Cost analysis: allows you to view detailed reports on resource usage and identify areas for optimization
  • Budgets: enables you to set budgets and alerts to manage costs
  • Cost management: provides insights into your spending and helps you identify high-cost areas to optimize

Remove Unused Resources

Removing unused resources is a crucial step in cost management. It's essential to deallocate idle VMs to stop incurring unnecessary charges.

Using tools like Azure Resource Graph and Azure Cost Management can help you identify and delete these resources. Regularly clean up unused or orphaned resources, such as abandoned storage accounts.

Data storage and metadata are billed per GB on a monthly basis, so make sure to review your storage usage regularly. You can use Azure Advisor for operational optimization w.r.t Azure-Resources used.

Here's a simple checklist to help you remove unused resources:

  • Deallocate idle VMs to stop incurring unnecessary charges
  • Use Azure Resource Graph and Azure Cost Management to identify and delete unused resources
  • Regularly clean up unused or orphaned resources, such as abandoned storage accounts

By following these steps, you can ensure you're only paying for what you need, and avoid unnecessary costs.

Tag Your Resources for Better Management

Tagging your Azure storage resources is a game-changer for better management. It helps your team organize and manage resources based on specific criteria, such as department, team, project, or environment.

Credit: youtube.com, The Cloud Clinic: Use tagging and cost management tools to keep your org accountable

Tagging can be a practical way to identify high-cost areas to optimize, which is more important than just cost tracking and allocation. Traditional Azure cloud cost management tools rely on tags to track usage and associated costs across Azure services.

This means that tagging is not just a good practice, but also a necessary one if you want to get the most out of Azure's cost management tools. However, traditional tagging can be time-consuming and error-prone, which is why it's essential to find a balance between tagging and using more robust tools.

Use Cost Management Tools

Using cost management tools is a crucial step in optimizing your Azure costs. You can use Azure Cost Management + Billing to track your usage and associated costs across Azure services.

Azure offers a suite of native cloud cost management tools through the Azure Portal, including the Azure Pricing Calculator, Azure Budgets, and Cost Management + Billing. These tools provide insights into your spending, helping you set budgets and alerts to manage costs on an ongoing basis.

Credit: youtube.com, Top 10 Cloud Cost Management Tools in 2023

You can get detailed reports on resource usage, making it easier to identify areas for optimization. For example, you can use filters to find storage costs specifically by going to Cost Management + Billing>>Cost management>>Cost analysis>>Add filter>>Service name>>storage.

Native tools typically send cost reports once every 24 hours. If you don't catch an issue early, it might escalate into overspending.

Here's a list of the native tools offered by Azure:

  • Azure Pricing Calculator
  • Azure Budgets
  • Cost Management + Billing

Keep in mind that native tools over-rely on tagging, which can be time-consuming and error-prone. This is where more robust and granular cloud cost optimization platforms like CloudZero can help you.

Understanding Costs

To calculate storage costs, you can multiply the size of the data in GB by the price of archive storage. For example, if you plan to store 10 TB to the archive tier, the capacity cost is $20.48 per month.

Azure offers a suite of native cloud cost management tools through the Azure Portal, including the Azure Pricing Calculator, Azure Budgets, and Cost Management + Billing. These tools provide insights into your spending and help you set budgets and alerts to manage costs on an ongoing basis.

Credit: youtube.com, 8.13 - Blob Storage Pricing || Microsoft Azure Administrator

Operations are billed per 10,000, so if the price per 10,000 operations is $0.10, then the price of a single operation is $0.00001. This means that if you use the Put Blob operation to write 30,000 blobs to the archive tier, that requires 30,000 operations.

You can use filters in the Cost Management + Billing tool to find storage costs specifically. For example, you can go to Cost Management + Billing >> Cost management >> Cost analysis >> Add filter >> Service name >> storage.

The cost to store data in Azure is based on the amount of data stored and read/write operations. If you use partitioning to optimize performance without compromising costs, this can be a cost-effective option compared to traditional SQL options for similar volumes of data.

Here's a breakdown of the costs associated with writing to the archive tier:

  • Put Blob operation: $0.00001 per operation
  • Put Block operation: (number of blocks * price of a hot write operation) + price of an archive write operation
  • Put Block List operation: price of an archive write operation
  • Set Blob Tier operation: price of an archive write operation

Billing and Pricing

Azure storage cost can be a complex topic, but understanding the basics can help you save money and optimize your storage usage.

Credit: youtube.com, Optimizing your storage costs with Azure Blob Storage | Azure Friday

Storage account costs are broken down into various operations, including write, read, list, and container operations. These costs vary depending on the storage tier, with hot, cool, cold, and archive storage options available.

The cost of write operations is $0.055 per 10,000 for hot storage, increasing to $0.18 per 10,000 for cold storage.

Read operations are cheaper, costing $0.0044 per 10,000 for hot storage, but increasing to $0.10 per 10,000 for cold storage.

List and container operations cost the same as write operations, $0.055 per 10,000 for hot storage, and $0.065 per 10,000 for cold storage.

Other operations, such as data retrieval, also incur costs. For example, data retrieval costs $0.01 per GB for cool storage, but is free for hot storage.

Here's a breakdown of the costs for each storage tier:

Data storage prices also vary depending on the storage tier, with the first 50 TB costing $0.0208 per GB for hot storage, and $0.0115 per GB for cool storage.

Purchasing and Provisioning

Credit: youtube.com, Azure Storage Purchasing and Performance Tuning

When you're ready to purchase and provision Azure storage, consider the cost savings of Reserved VMs, which can offer up to 72% off the standard pay-as-you-go rate for storage.

If you have predictable workloads, you can take up reservations for a one or three-year term. This makes sense for databases with consistent usage patterns and storage accounts with steady data transfer rates.

Azure Reservations are a great way to lock in savings for predictable workloads, allowing you to budget and plan ahead with more accuracy.

Storage Tiers and Options

Azure Storage offers a range of storage tiers and options to suit different needs and budgets. Each tier has its own pricing and performance characteristics.

Azure Disk Storage is a good option for persistent, high-performance disk storage for Azure VMs, with options including Standard HDD, Standard SSD, and Premium SSD. Pricing is based on disk type, capacity, and performance tier.

You can choose between Hot, Cool, and Cold storage tiers, each with its own pricing and performance characteristics. Archive storage is the lowest-cost tier, but it can take up to 15 hours to rehydrate 10-GiB files.

Here's a comparison of the costs of Archive, Cold, and Cool storage:

Keep in mind that there are early deletion periods for each tier, ranging from 30 to 180 days, which can affect your costs.

Blob

Credit: youtube.com, AZ-900 Episode 11 | Azure Storage Services | Blob, Queue, Table, Files, Disk and Storage Tiers

Azure Blob Storage is a great option for storing unstructured data like documents, images, and videos. It's scalable and accessible via HTTP/HTTPS, with costs based on storage capacity, transactions, and data egress.

Blob Storage has three tiers: Hot, Cool, and Archive. Each tier is designed for a specific use case, with costs varying accordingly.

The Hot Tier is ideal for frequently accessed data and costs the most. It's perfect for applications where data is accessed constantly.

The Cool Tier is suitable for infrequently accessed data that requires immediate availability. It's considerably less expensive than the Hot Tier and a great option for data that's accessed occasionally.

The Archive Tier is the cheapest option and ideal for rarely accessed data with flexible retrieval times. It's perfect for data that's not accessed often, but needs to be available when needed.

You can automatically move your data from one tier to the next based on access patterns, which can help reduce costs. This feature allows you to adapt to changing data access patterns without manual intervention.

Here's a quick summary of the three tiers:

Cool, Cold and Archive

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Azure Blob Storage offers three tiers: Hot, Cool, and Archive. The Hot Tier is ideal for frequently accessed data and costs the most, while the Archive Tier is suitable for rarely accessed data with flexible retrieval times and is the cheapest option.

The Cool Tier falls somewhere in between, suitable for storing infrequently accessed data that requires immediate availability whenever needed. It's considerably less expensive than the Hot tier.

Azure Blob Storage allows you to automatically move your data from one tier to the next based on access patterns, which can help reduce costs.

Here's a breakdown of the costs associated with each tier:

The costs are based on storage capacity, transactions, and data egress. It's essential to choose the right tier for your data to minimize costs.

Disk

Azure Disk Storage offers persistent and high-performance disk storage for virtual machines. You can choose from Standard HDD, Standard SSD, and Premium SSD options.

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For maximum price-performance results, match disk types to workload requirements to avoid overpaying for performance you don't need. This will help you significantly reduce costs while maintaining performance.

Unattached disks and snapshots can continue to incur storage costs even if they're no longer needed. Regular monitoring and deletion of these resources are essential to avoid unnecessary expenses.

You can delete unattached disks by navigating to your Azure Storage Account and locating "Virtual Hard Disk" on the overview tab. Check if a disk's status is "unlocked" and its lease state is "available" to confirm it's unattached.

Azure Scheduler can help you automatically delete unattached disks and snapshots. You can also use Azure Resource Manager logs to check for unexpected resource usage and turn on alerts to get notified of any unexpected changes.

Disk bursting provides high performance only when needed, reducing the risk of over-provisioning and cost overruns. This means you can temporarily exceed the disk performance of your provisioned capacity without paying for a premium Azure disk tier all the time.

Curious to learn more? Check out: How to Check Onedrive Storage Space

Configure Replication

Credit: youtube.com, Configuring Azure storage replication and security

Configuring replication is a crucial step in ensuring your data is protected against outages and disasters.

Data recovery can have significant social costs, so it's essential to choose the right replication option for your needs.

Locally Redundant Storage (LRS) is the cheapest option and offers protection against drive and server rack failures.

Be sure to check the whole range of storage replication options available to see which ones are ideal for your specific use cases.

Service Level Agreement

A Service Level Agreement (SLA) is essential to ensure you get the most out of Azure Storage.

Azure Storage's SLA guarantees 99.9% uptime for its Blob, File, and Queue storage services.

This means you can rely on Azure Storage to be available most of the time, but it's still important to plan for occasional downtime.

The SLA also covers data durability, with Azure Storage guaranteeing that at least 99.999999999% of your data will be available.

This level of data durability is achieved through Azure's robust storage architecture and replication process.

To take advantage of Azure Storage's SLA, you'll need to ensure you're using the service in accordance with its terms and conditions.

This includes meeting the required storage capacity and performance metrics.

On a similar theme: Block Level Storage

Frequently Asked Questions

How much is S3 vs Google cloud storage vs Azure?

Amazon S3 Glacier costs $0.004 per GB, Google Coldline is $0.007 per GB, and Azure Archive is $0.0012 per GB, but be aware of higher retrieval fees and longer access times for these lower-cost options

Why are Azure files so expensive?

Azure file costs are based on usage, including storage, transactions, and data transfer, making them variable and potentially high. Understanding the usage-based pricing model can help you optimize costs and make the most of Azure file services.

Why is Azure blob storage so expensive?

Azure Blob Storage costs are influenced by data volume, operations, transfer fees, and redundancy options, making it a variable expense. Understanding these factors can help you optimize your storage costs and make the most of your Azure investment.

Which of the blob storage tiers is the least expensive?

The archive access tier is the least expensive option, offering the lowest storage cost. However, it comes with higher data retrieval costs and latency compared to other tiers.

How to calculate storage account cost in Azure?

To calculate storage account cost in Azure, navigate to the Azure pricing calculator page, select the Storage Accounts tile, and customize your estimate using the drop-down lists. This will provide you with a personalized cost estimate based on your chosen options.

Tanya Hodkiewicz

Junior Assigning Editor

Tanya Hodkiewicz is a seasoned Assigning Editor with a keen eye for compelling content. With a proven track record of commissioning articles that captivate and inform, Tanya has established herself as a trusted voice in the industry. Her expertise spans a range of categories, including "Important" pieces that tackle complex, timely topics and "Decade in Review" features that offer insightful retrospectives on significant events.

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