Azure management and best practice involve a virtuous cycle of
visibility accountability and optimization in saving costs this cycle can be
better understood when we review the features from the actions that can be
taken on the billing account when the billing account is created at the time of
signing up to Azure it begins to accumulate invoices payments and cost tracking
measurements. There can be more than one billing accounts. Some accounts begin
with the pay-as-you-go billing model it can account for resource usage is and
allow the option for users to terminate resources when a threshold is exceeded.
Other accounts fall under enterprise and customer agreements and they are
typically signed business to business or in the latter case when the
organization signs up for a customer agreement with Microsoft billing differs
from cost management altogether while billing is the process of invoicing
customers for goods or services and managing the commercial relationship cost
management is an operational practice it identifies costs and usage patterns
that can be provided with advanced analytics and reports based on the
negotiated prices and factors in reservations it can provide even discounts the
reports on internal and external costs based on usages and marketplace charges
can be collectively presented via cost management features these reports help understand
the drill down on spending as well as the breakouts under different categories
some predictive analytics are also available which help identify the resources
that cost more than others. One such feature is a reservation and as your
resource reservation helps save money by committing to a one year or three-year
plan for multiple products this commitment gets some discount on the resources
despite their usage it can significantly reduce resource costs and in some
cases up to 72% of paid pay as you go prices when they play discount they don't
alter the runtime state of the resources so it's merely a policy the total cost
of upfront and monthly reservations is the same and we don't pay any extra fee
when we choose to go monthly there are some advantages to buying preservations
such as an immediate reservation discount not being charged for resources on a
continuous basis and tolerating fluctuations. certain attributes for
reservations determine the resource to be purchased choices between SKUs and regions
wherever applicable and scope can change the instance being reserved
determining what to purchase is one of the key decisions in cost management and
any such decision can be applied on an hourly basis well it's easy to buy
reservations online via the Azure portal the same can be done via API's
PowerShell is decays and command-line interfaces the billing for reservation
proceeds from a subscription but the reservation can even be applied two
different subscriptions. Reservation can also be split into two reservations if
the assured result virtual machine instance is purchased then a reservation
discount can be applied to that resource. at the time of purchase, there are
two objects created a reservation order and reservation actions such as split
merge partial refund or exchange created new reservations are included under
the reservation order it can be viewed by selecting the reservations and
navigating to the order ID. The reservation scope determines the set of
resources to which the reservation applies the billing contest is dependent on
the subscription used to buy the reservation if the reservation scope is
changed from shared to single then only the owner can select some of their
subscriptions for the reservation scope, but enterprise agreement and Microsoft
customer agreement billing contributors can manage hold reservations for their
organizations. there are two ways to go about sharing this privilege first
access management can be deleted-delegated for an individual reservation order
by assigning the owner role to the individual at the resource scope of the
reservation order the other way is to use a user as a billing administrator to
an agreement backed reservation. all users go to the shore portal to manage
their costs from the cost management and billing section of the portal. There
are some extended features available for self-service exchanges and refunds for
Azure reservations, but the reservations must be similar for their users to
take advantage of these features exchanges can work both ways from downsizing
to upscaling also service features are available from the portal.
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