# AZ-104 - Governance and Compliance - Managing Azure Costs

[Introduction to analyzing costs and creating budgets with Microsoft Cost Management](https://learn.microsoft.com/en-us/training/modules/analyze-costs-create-budgets-azure-cost-management/)

[Describe cost management in Azure](https://learn.microsoft.com/en-us/training/modules/describe-cost-management-azure/)

##### <span style="background-color: rgb(0, 0, 0); color: rgb(255, 255, 255);">**Different components on Azure cost model**</span>

- **Subscription type**: Free, Pay as you go, Enterprise agreement, and Cloud Solution Provider (CSP).
- **Resource type:** For example, storage account blob storage vs Table Storage.
- **Usage Meters**: Utilities like overall CPU time, ingress/egress network traffic and disk size.
- **Resource Usage:** The cost of actually using a resource.
- **Location:** The cost for various services vary across geographical regions.

<table border="1" id="bkmrk-best-practices-selec" style="border-collapse: collapse; width: 55.1852%; height: 29.7167px;"><colgroup><col style="width: 100%;"></col></colgroup><tbody><tr><td>**Best Practices**  
</td></tr><tr><td>Select the appropriate resource for the use case.

</td></tr><tr style="height: 29.7167px;"><td style="height: 29.7167px;">Understand needs (sizing).

</td></tr><tr><td>De-allocate resources when not needed.

</td></tr><tr><td>Use cloud capabilities where possible(e.g., scalability, elasticity).

</td></tr><tr><td>Plan your cost prior to purchase.

</td></tr></tbody></table>

<table border="1" id="bkmrk-cost-tools-pricing-c" style="border-collapse: collapse; width: 54.6914%; height: 77px;"><colgroup><col style="width: 100%;"></col></colgroup><tbody><tr style="height: 29.7167px;"><td style="height: 29.7167px;">**Cost Tools**  
</td></tr><tr style="height: 29.7167px;"><td style="height: 29.7167px;">Pricing Calculator.  
</td></tr><tr><td>Total cost of Ownership (TCO) calculator.</td></tr><tr style="height: 29.7167px;"><td style="height: 29.7167px;">Microsoft Cost Management (Analyze costs and create Budgets)</td></tr></tbody></table>

Inside Azure Portal search for cost management then go to cost analysis

![image.png](https://wiki.tinod.net/uploads/images/gallery/2024-02/scaled-1680-/IzzZQwcsuc4Zz5sx-image.png)

We can identify different costs per service, resource groups, locations, etc

![image.png](https://wiki.tinod.net/uploads/images/gallery/2024-02/scaled-1680-/Zuo3r09sPa26fF76-image.png)

##### <span style="background-color: rgb(0, 0, 0); color: rgb(255, 255, 255);">**Using the pricing calculator**</span>

<span style="color: rgb(255, 255, 255);">**[Pricing Calculator](https://azure.microsoft.com/en-in/pricing/calculator/)**</span>

![image.png](https://wiki.tinod.net/uploads/images/gallery/2024-02/scaled-1680-/CnGkmwiY5kPrfjqS-image.png)

##### <span style="background-color: rgb(0, 0, 0); color: rgb(255, 255, 255);">**Using the TCO Calculator** </span>

<span style="color: rgb(255, 255, 255);">**[TCO Calculator](https://azure.microsoft.com/en-us/pricing/tco/calculator/)**</span>

![image.png](https://wiki.tinod.net/uploads/images/gallery/2024-02/scaled-1680-/gVaRKcBpe4DJPNNM-image.png)