In the previous issue, we introduced cost-saving solutions for cloud computing, sharing how purchasing suitable cost-saving plans can help companies reduce the burden of transitioning to the cloud. However, before choosing any cost-saving plan, if a company is already using the cloud, it can observe monthly cloud costs through each cloud provider's "cost management tools" to precisely assess expenses. This allows them to consider various ways to reduce costs. Today, we will introduce Azure's cost management tool — Cost Management and Billing.
Powerful Azure Cost Management
Azure's Cost Management is an integrated FinOps tool within Azure designed to assist users in analyzing, configuring, monitoring, and optimizing their cloud costs. Regarding analysis, Cost Management goes beyond Azure itself to include analyzing costs for services like Microsoft 365. Configuration involves enabling tag inheritance and splitting shared costs through a configuration engine. Monitoring ensures alerts are provided when usage fees are abnormal or exceed budget settings. Additionally, it integrates data into cost analysis-related tools to facilitate comprehensive cost structure reviews and optimization adjustments.
A Helpful Aid in the Operation between Cost Management and Billing - Azure Commerce System
Billing is used to manage billing accounts, invoicing, and payment tools necessary for Azure. When registering for an Azure account, a billing account is created. Billing facilitates monthly cost settlement, point reviews, discount application, management of billing addresses and payment terms, and invoice issuance. How does the operation between Cost Management and Billing work? This is related to Microsoft's Commerce system. Data from Microsoft services such as Azure and Microsoft 365 are pushed to the Commerce system's data pipeline. When data enters the pipeline for processing, it is divided into Billing and Cost Management phases. The Billing phase involves a rating system that applies discounts based on specific price lists, completes billing and invoice issuance, and generates "rated usage" containing each cost record. At this point, it enters the Cost Management phase, where management and subsequent analysis are based on the cost data foundation of the rated usage. Cost Management can be accessed from Billing, each subscription user, management group, or resource group, making it convenient for cross-management of multiple subscription users, management groups, and resource groups.
Azure Commerce system 示意圖 (圖片取自Azure官方文檔：https://learn.microsoft.com/zh-tw/azure/cost-management-billing/cost-management-billing-overview#how-charges-are-processed)
Rich and Diverse Azure Cost Management Features
Finally, we would like to share the various features of Azure Cost Management & Billing:
- Reporting and Analyzing Costs
Cost Analysis and Power BI tools are available in Cost Management. Cost Analysis is used for basic cost structure analysis, while Power BI allows for the creation of dashboards and complex reports. Exporting and detailed cost data APIs enable data integration into external systems. Additionally, there is an AWS connector for cross-cloud cost observation and the ability to enable other Cost Management features.
- Organizing and Configuring Costs
Through MCA billing profile and invoice sections, subscription users can be grouped into individual invoices, with each billing profile representing different business units billed on separate invoices, and invoice sections split within those invoices. We can view different cost situations through billing profiles and invoice sections or observe costs in EA departments and registered accounts.
- Monitoring Costs and Alerts
By setting up various cost alerts and receiving notifications via email, SMS, etc., users can accurately track cloud spending. For instance, setting up budget alerts will notify users when costs exceed budget, and action groups for notification actions can be set up within subscription users and resource groups to automate cost controls. Anomaly alerts notify users when there are abnormal increases or decreases in daily usage, and scheduled alerts provide notifications of daily, weekly, or monthly cost status based on saved cost views, among others.
Source：Azure - 〈What is Microsoft Cost Management and billing？〉
https://learn.microsoft.com/zh-tw/azure/cost-management-billing/cost-management-billing-overview