Describe cost management in Azure
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Questions and Answers

Which cloud payment model allows you to pay for the resources that you use during a billing cycle?

  • Maintenance
  • Consumption Pay-as-you-go (correct)
  • Geography
  • Reserved capacity

    • What does it mean to reserve capacity in Azure?

  • Pay for additional resources in excess of your reservation
  • Commit to using a set amount of cloud resources in advance and receive discounts (correct)
  • Maintain your cloud environment
  • Rapidly adjust resources based on demand

    • What factor determines the cost of some Azure services related to network traffic?

  • Resource groups
  • Azure Marketplace
  • Billing zones (correct)
  • Subscription type

    • What does the Azure Marketplace offer?

    <p>Azure-based solutions and services from third-party vendors</p> Signup and view all the answers

    According to the text, how many sets of virtual machines (VMs) are being run in each bank?

    <p>Two sets</p> Signup and view all the answers

    According to the text, how many TB of disk storage are there in the storage area network (SAN)?

    <p>60 TB</p> Signup and view all the answers

    According to the text, how much outbound network bandwidth is estimated to be consumed each month?

    <p>15 TB</p> Signup and view all the answers

    According to the text, how many rows are created in the TCO Calculator for the bank of Linux VMs?

    <p>Two rows</p> Signup and view all the answers

    Which of the following is NOT a purpose of resource tags in Azure?

    <p>Data classification</p> Signup and view all the answers

    How can resource tags be managed in Azure?

    <p>All of the above</p> Signup and view all the answers

    Do resources inherit tags from subscriptions and resource groups in Azure?

    <p>No</p> Signup and view all the answers

    What is the purpose of using Azure Policy for resource tags?

    <p>To enforce tagging rules and conventions</p> Signup and view all the answers

    Which factors can impact the cost of Azure resources?

    <p>Resource type, settings for the resource, and Azure region</p> Signup and view all the answers

    What are some factors to consider when provisioning a virtual machine in Azure?

    <p>Licensing for the operating system or other software, processor and number of cores for the VM, attached storage, and network interface</p> Signup and view all the answers

    How does Azure shift development costs from capital expense to operational expense?

    <p>By renting infrastructure as you need it</p> Signup and view all the answers

    Which calculator is designed to help you compare the costs for running an on-premises infrastructure compared to an Azure Cloud infrastructure?

    <p>TCO calculator</p> Signup and view all the answers

    What is the purpose of the Pricing calculator?

    <p>To estimate the cost of provisioning resources in Azure</p> Signup and view all the answers

    What can you estimate the cost of using the Pricing calculator?

    <p>Provisioned resources including compute, storage, and associated network costs</p> Signup and view all the answers

    What is the focus of the TCO calculator?

    <p>The cost of running an on-premises infrastructure</p> Signup and view all the answers

    Which of the following is a feature of Cost Management in Azure?

    <p>Ability to quickly check Azure resource costs</p> Signup and view all the answers

    What is the purpose of Cost Analysis in Cost Management?

    <p>To explore and analyze organizational costs</p> Signup and view all the answers

    What are the three types of alerts that may show up in Cost Management?

    <p>Budget alerts, credit alerts, and department spending quota alerts</p> Signup and view all the answers

    What is the purpose of a budget in Cost Management?

    <p>To set a spending limit for Azure</p> Signup and view all the answers

    According to the text, how many virtual machines are being used in the basic web application configuration?

    <p>Two virtual machines</p> Signup and view all the answers

    How many hours per month do the virtual machines and the database run in the basic web application configuration?

    <p>730 hours</p> Signup and view all the answers

    What is the estimated monthly network data processed by the basic web application?

    <p>1 TB</p> Signup and view all the answers

    According to the text, how much storage is required for the database in the basic web application configuration?

    <p>32 GB</p> Signup and view all the answers

    According to the text, how many virtual machines (VMs) are being run in each bank?

    <p>50</p> Signup and view all the answers

    What is the estimated outbound network bandwidth consumption per month?

    <p>15 TB</p> Signup and view all the answers

    How many rows are created in the TCO Calculator for the bank of Linux VMs?

    <p>2</p> Signup and view all the answers

    What is the total disk storage capacity of the storage area network (SAN)?

    <p>60 TB</p> Signup and view all the answers

    Which factors can impact the cost of Azure resources?

    <p>All of the above</p> Signup and view all the answers

    What are some factors to consider when provisioning a virtual machine in Azure?

    <p>All of the above</p> Signup and view all the answers

    How does Azure shift development costs from capital expense to operational expense?

    <p>By renting infrastructure as you need it</p> Signup and view all the answers

    Which payment model in Azure allows you to pay for the resources that you use during a billing cycle?

    <p>Consumption Pay-as-you-go</p> Signup and view all the answers

    What is the purpose of reserving capacity in Azure?

    <p>To receive discounts on cloud resources</p> Signup and view all the answers

    What factor determines the cost of some Azure services related to network traffic?

    <p>Billing zones</p> Signup and view all the answers

    What is the purpose of the Azure Marketplace?

    <p>To purchase Azure-based solutions and services from third-party vendors</p> Signup and view all the answers

    Which of the following is NOT a type of alert that may show up in Cost Management?

    <p>Usage alerts</p> Signup and view all the answers

    What is the purpose of Credit alerts in Cost Management?

    <p>To notify you when your Azure credit monetary commitments are consumed</p> Signup and view all the answers

    What is the purpose of Department spending quota alerts in Cost Management?

    <p>To notify you when department spending reaches a fixed threshold of the quota</p> Signup and view all the answers

    What is the purpose of Cost alerts in Cost Management?

    <p>To notify you when spending, based on usage or cost, reaches or exceeds the amount defined in the alert condition of the budget</p> Signup and view all the answers

    Which of the following is NOT a purpose of resource tags in Azure?

    <p>Automating workload optimization</p> Signup and view all the answers

    How can resource tags be managed in Azure?

    <p>All of the above</p> Signup and view all the answers

    What is the purpose of a budget in Cost Management?

    <p>To forecast estimated cost</p> Signup and view all the answers

    What are some factors to consider when provisioning a virtual machine in Azure?

    <p>All of the above</p> Signup and view all the answers

    Study Notes

    Azure Payment Models and Cost Management

    • The Pay-As-You-Go payment model allows you to pay for the resources you use during a billing cycle.
    • Reserving capacity in Azure allows you to reserve virtual machines, storage, and other resources for a one- or three-year term to reduce costs.
    • The cost of some Azure services related to network traffic is determined by outbound network bandwidth consumption.

    Azure Marketplace and Resource Management

    • The Azure Marketplace offers a platform to find, try, and deploy software solutions.
    • Resource tags can be managed in Azure through the Azure portal, Azure CLI, or Azure REST API.
    • Resources do not inherit tags from subscriptions and resource groups in Azure.
    • The purpose of using Azure Policy for resource tags is to enforce consistent tagging across resources.

    Cost Estimation and Optimization

    • The Pricing calculator is designed to help compare costs for running an on-premises infrastructure compared to an Azure Cloud infrastructure.
    • The TCO (Total Cost of Ownership) calculator focuses on estimating the total cost of ownership for running a workload in Azure.
    • Factors that can impact the cost of Azure resources include resource usage, location, and pricing model.

    Virtual Machine Provisioning and Configuration

    • Factors to consider when provisioning a virtual machine in Azure include the number of virtual machines, machine type, location, and storage requirements.
    • Azure shifts development costs from capital expense to operational expense by providing a pay-as-you-go pricing model.

    Cost Management and Alerts

    • Cost Management in Azure provides features such as cost analysis, budgeting, and alerting to help manage costs.
    • The purpose of Cost Analysis in Cost Management is to provide a detailed view of Azure costs and identify areas for optimization.
    • Three types of alerts that may show up in Cost Management are Credit alerts, Department spending quota alerts, and Cost alerts.
    • The purpose of a budget in Cost Management is to set a spending limit for a subscription or resource group.

    Case Study Scenario

    • In the basic web application configuration, 2 virtual machines and a database run for 720 hours per month.
    • The estimated monthly network data processed by the basic web application is 100 GB.
    • The database requires 100 GB of storage in the basic web application configuration.
    • Each bank has 2 virtual machines (VMs) and a database.
    • The estimated outbound network bandwidth consumption per month is 100 GB.
    • 12 rows are created in the TCO Calculator for the bank of Linux VMs.
    • The total disk storage capacity of the storage area network (SAN) is 100 TB.

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