Azure, Cloud Computing

3 Mins Read

Azure Virtual Machines: Best Practices for Optimizing Performance and Cost


Azure Virtual Machines (VMs) provide businesses with the ability to run a variety of applications and workloads on the cloud.

With Azure VMs, companies can easily scale their computing resources, improve availability, and reduce costs.

However, these benefits may not be fully realized without proper configuration and management.

Tips for Optimizing Performance and Cost

This blog will discuss the best practices for optimizing performance and cost when using Azure Virtual Machines. The following are some points that can be considered:

  1. Choose the Right VM Size – Choosing the right VM size is crucial for optimizing performance and cost in Azure. Selecting a VM size that is too small may result in poor performance while choosing a size that is too large will result in wasted resources and increased costs. Azure offers various VM sizes, each with varying amounts of CPU, RAM, and storage. To choose the right VM size, consider the requirements of the application or workload, as well as the expected usage patterns. For example, an application that requires high CPU usage may require a VM with more CPU cores, while an application that requires a lot of storage may require a VM with more storage capacity.
  2. Use Azure Advisor – Azure Advisor is a free service that recommends optimizing performance, security, and cost in Azure. It uses machine learning to analyze usage patterns and provide personalized recommendations based on best practices. Azure Advisor can help identify underutilized VMs and recommend downsizing to save costs. It can also guide storage optimization, network performance, and security best practices.
  3. Use Azure Reserved Instances – Azure Reserved Instances allow businesses to save up to 72% on their VM costs by prepaying for compute resources for a one- or three-year term. Reserved Instances provide significant cost savings for VMs expected to run for extended periods. By reserving compute capacity in advance, businesses can reduce costs and better forecast their expenses.
  4. Optimize Storage – Optimizing storage can help reduce costs and improve performance in Azure VMs. One way to optimize storage is by using managed disks instead of unmanaged ones. Managed disks offer better reliability, scalability, and performance than unmanaged disks. Additionally, using Azure Storage tiers can help save costs by tiering data based on access frequency and performance requirements. For example, infrequently accessed data can be stored in a lower-cost tier, while frequently accessed data can be stored in a higher-performance tier.
  5. Use Autoscaling – Autoscaling allows businesses to adjust the number of VMs based on usage patterns automatically. Using autoscaling, companies can scale up or down based on demand, which can help reduce costs and improve performance. Azure offers several autoscaling options, including virtual machine scale sets, which automatically adjust the number of VM instances based on CPU or memory usage.
  6. Monitor Performance – Monitoring performance is essential for optimizing Azure VMs. By monitoring performance, businesses can identify bottlenecks and make adjustments to improve performance and reduce costs. Azure provides several tools for monitoring VM performance, including Azure Monitor, which can track performance metrics, diagnose issues, and send alerts. By using Azure Monitor, businesses can gain insight into their VMs’ performance and make data-driven decisions to optimize performance and reduce costs.
  7. Use Spot Instances – Azure Spot Instances allow businesses to use unused Azure compute capacity at a significantly reduced cost. Spot Instances offer up to 90% savings compared to standard VM pricing. However, Spot Instances are not recommended for production workloads or applications that require high availability. Instead, they are best used for non-critical workloads, batch processing, or applications that can tolerate interruptions.
  8. Azure Hybrid Benefit – Azure Hybrid Benefit is a program that allows you to use your current on-premises Windows Server and SQL licenses on Azure. As mentioned, you can save up to 85% off standard Azure pay-as-you-go rates by taking advantage of the Azure Hybrid Benefit, Extended Security Updates, and subscription savings. Microsoft promises 180-day dual-use rights, allowing you to keep your on-premises solutions while migrating to Azure.

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Azure VMs provide businesses with the ability to run a variety of applications and workloads on the cloud. By following the above best practices for optimizing performance and cost, companies can maximize the benefits.

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Drop a query if you have any questions regarding Azure Virtual Machine and I will get back to you quickly.

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1. Which Azure VMs offers Azure Spot Instances pricing?

ANS: – Azure Spot Instances pricing is available for most Azure VMs, except for suppressed core VMs, promo VMs, and burstable VMs (B-series).

2. Will existing Azure customers use Azure Reserved Virtual Machine Instances everywhere?

ANS: – Azure Reserved VM Instances for pay-as-you-go subscriptions are not available in Argentina, Brazil, Cuba, Hong Kong, India, Iran, Indonesia, Korea (North), Liechtenstein, Malaysia, Mexico, Russia, Saudi Arabia, South Africa, Sudan, Syria, Türkiye, Ukraine, Belarus, Kazakhstan, Azerbaijan.

3. Which products are eligible for the Azure Hybrid Benefit?

ANS: –

  • Windows Server Standard Edition with Software Assurance
  • Windows Server Datacenter Edition with Software Assurance
  • SQL Server Enterprise Core with Software Assurance
  • SQL Server Standard Core with Software Assurance
  • Azure SQL Database

WRITTEN BY Kashyap Nitinbhai Shani

Kashyap Nitinbhai Shani is a Research Associate at CloudThat. He is interested to learn advanced technologies and gain insights into new and upcoming cloud services. He likes writing tech blogs and learning new languages.



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