Episode 4: Consumption-Based Pricing Model in Azure

Introduction

• Host: Adam
• Topic: Understanding the consumption-based pricing model in Azure.

Key Concepts

Consumption-Based Model

• Definition: You only pay for cloud resources when you use them.
• No Upfront Costs: Costs incur only upon resource usage, no need to pay for unused resources.
• Elasticity: Resources can be allocated or released based on demand; no over-provisioning.

Example: Virtual Machine

• Challenges in Pricing: Pricing for resources like VMs can be complex due to various metrics.
• Metrics Used for Pricing:
  • Compute Power (size of VM purchased)
  • Storage attached to the VM (charged separately)
  • Networking costs
• Granularity of Charges: Charges are calculated to the second; for example, using a VM for 20 seconds will only cost for those 20 seconds.

Azure Portal Overview

• Cost Management Service: Tool for analyzing subscription costs within Azure.
• Cost Analysis:
  • Select subscription and analyze costs over time.
  • Change granularity (e.g., daily) and group costs by service names.
  • Visualization with color-coded services in charts.

Observations from Cost Analysis

• Example of costs when using VMs and additional services:
  • Consistent costs for VM and storage due to steady usage.
  • Fluctuations in costs observed on days with increased service usage (e.g., Azure Databricks creating extra VMs).
  • Lower costs on days with lesser service usage.

Conclusion

• Recap: Consumption-based pricing means paying only for what you use.
• Encouraged to try the concepts learned and provide feedback.

Additional Resources

• Visit the website for episode-specific study guides, cheat sheets, and practice tests.
• Support the channel by subscribing, liking, and commenting.
• Playlist available for next episodes.

Closing

• Thanks to viewers for attending the episode!
• End theme music plays.