Microsoft Azure pricing 101: Tips and tricks

Microsoft Azure, like many other cloud service providers, have built their billing and subscription models on a pay-per-use basis, i.e., if you use one hour of CPU time you pay for the hour you have consumed. No more, no less.

This basic economic principle forms the foundation of most public cloud services. However, the implementation of this simple concept can be quite complex and intricate. This is especially true if the cloud provider offers a wide variety of cloud services which utilize computing resources in different ways as is the case with Microsoft Azure.

Azure solutions are built on multiple standalone services

The key concept to understand when determining Azure pricing is that each solution is comprised of a number of different services and building a solution price entails combining the cost of these multiple services.

If we take a web application as an example, it may not only consist of a web app service and a database; it may also include some form of static storage and perhaps need a few advanced networking services. All are priced individually by Azure, so understanding the full scope of the services your solution consumes will help you determine its ultimate cost.

One size does not fit all – each Azure services is priced differently

Each service on Azure is priced as a measured service. However, not all services use the same set of computing resources, so the hourly cost of each service is calculated differently.

For example, pricing for virtual machines is calculated by summing the individual unit prices for the virtual CPUs, memory, storage, and networking services consumed. Databases, on the other hand, are priced according to what Microsoft terms a Database Transaction Unit (DTU) which is a bundled measure of computing, storage, and IO resources. Storage and backup services measure their costs using GBs consumed.

The point is, each service is priced according to the resources you use on an hourly basis. One size does not fit all, unfortunately, so to price your solution, you should understand the full scope of the services consumed as well as how the cost of each service is calculated by Microsoft.

Azure pricing tiers – the more resources used, the more you pay

Over and above the different measures used to determine the cost of each service, each also has different pricing tiers and the price increases as you choose to consume more resources.

For example, virtual machines come in a variety of different preconfigured instances each with its own vCPU, memory, and storage configuration. The more resources the instance you choose consumes, the more you pay. Databases, on the other hand, give you the option to set the number of instances, the type (managed, elastic pool or single database), and the generation. Storage is calculated by the type of storage (blob, file, table, etc.), the level of redundancy you require, and of course, the size.

In essence, this illustrates how each service has its own unique permutation of resources used to calculate the cost per hour and the higher the number of resources used, the higher the cost. If we have multiple services to price, you can start to see how calculating the cost of a solution becomes overwhelming.

Don’t forget pricing for ancillary services

When pricing Azure services, remember to determine the ancillary services your solution uses. This is crucial to figure the overall cost as many solution calculations have failed to take these costs into account at their own peril.

For example, virtual networks carry a bandwidth transfer cost and backups are an additional charge. It is essential that every resource you use for your solution be accounted for up front to ensure there are no nasty price surprises down the line.

Azure pricing is complex – use the Azure Pricing Calculator

As we have seen, Azure offers a multitude of different cloud service solutions, each priced in its own way. Also, when we build our costing model, it is essential to itemize each service and understand how the cost is calculated, then choose the right pricing tier while also remembering to add in any ancillary services.

Building an Azure costing model can become overwhelming, but thankfully there are resources and tools available to assist us in getting the information we need. There are multiple pricing resources on the Azure portal which detail how each service is priced, however, the Azure Pricing Calculator is an invaluable resource to understand Azure costs. With this tool, you can itemize each service, choose the appropriate pricing tier, and also add any ancillary services you may need to consume.

Azure cost saving tips

Now that we have discussed how complex and intricate Azure pricing can be let’s take a look at a few ways you can save costs while ensuring your solution is not negatively impacted.

Switch off what you don’t use: Microsoft Azure works on a pay-per-use subscription model so the more you use, the more you pay. To reduce costs, you can deallocate certain types of resources when they are not in use to save money. Shutting down virtual machines which are not in active use is a perfect example. A shutdown virtual machine only incurs storage costs saving you money on the computing resources not in use when the virtual machine is not running.

Azure prepaid subscriptions and alternate regions: Pre-paying for Azure services also has saving benefits as Microsoft has built discounts into the different pre-payment models. In addition, if you have the flexibility to deploy to another Azure region, some services in certain regions cost less than the same service in a more popular or remote region where resources have high demand.

Choose the right pricing tier for your solution: The best way to save money when deploying your solution to Azure is to make sure you pick the right level of resource for the performance you expect. This is the key factor which ultimately impacts cost per hour.

Cloud vs. on-premise – TCO is a key measure

Hosting your solution on a cloud platform like Azure does come with costs, the intricacies of which have been discussed in this post. You may think that hosting your solution on-premise may be a better option with all the permutations to consider. This is not true. The Cloud is often the right financial choice, and the key here is to understand the Total Cost of Ownership (TCO) of your solution whether you to host it on Azure or on-premise.

To understand Azure’s TCO, it is important to realize that Azure pricing includes the procurement, management, and ongoing maintenance of the underlying hardware, software, and networking infrastructure which hosts these services. On Azure, you do not only pay for the cloud service you consume, but you also pay for the management, maintenance, and security of that service. If you compare hosting a solution on-premise versus hosting it on Azure, it is imperative that you take these management and infrastructure costs into account.

If you host your solution on-premise and accurately compare this cost to Azure, you have to calculate the direct costs associated with managing and maintaining your own hardware and software. You also need to add the inefficiency cost of not utilizing the full resources at your disposal as well as the opportunity cost of investing a large amount of capital which could be put to better use elsewhere in your organization. And it is these indirect costs which swing the balance in Azure’s favor.

If you take the full TCO of an on-premise solution and compare it to the Azure cost for hosting the same service, Azure is usually more cost-effective. It is especially true if we consider the hidden indirect costs which come with hosting solutions on-premise. Why would you want to take on this responsibility if it is not core to your business? Let Azure take care of your IT services while you take care of growing your business.

The post Microsoft Azure Pricing 101: Tips and Tricks appeared first on SherWeb.

Amazon adds money making to Alexa skills


Bobby Hellard

4 May, 2018

Amazon’s voice assistant Alexa has been opened up to all developers to generate cash through add-ons and premium content in the virtual assistant’s ‘skills’.

In-skill purchasing will allow developers to charge for premium content and features within an Alexa skill, or enable subscriptions to premium content and features served up through the smart assistant.

There are currently over 40,000 skills for the smart assistant, all of which will remain free and allow the consumer to fully assess the quality of the skill before they purchase any extra features or content.

Amazon said developers will be able to use customers’ payment information from Amazon, so users can pay seamlessly via voice with Amazon Pay. 

«If you offer premium content, a customer can now ask to shop, buy, or agree to purchase suggestions made by your skill. Customers pay using Amazon’s simple voice purchasing flow using the payment options associated with their Amazon account. You define your premium offering and price, and we handle the voice-first purchasing flow,» explained Jeff Blankenberg, Alexa evangelist at Amazon. 

With this update, an Alexa skill can now pull payment and shipping information directly from Amazon, giving it the ability to take a cut of each sale while simultaneously discouraging users from leaving the Alexa interface to create an account with the third-party seller.

This new feature is similar to its e-commerce marketplace, where it serves as a technology and logistics platform for other retailers to sell products.

One of the first skills to use this capability is 1-800-Flowers, which asks that you turn on Amazon Pay in the Alexa app. After you select flowers, the app will offer two similar suggestions before asking for the name and address of the recipient.

Another announcement last week also opens the possibility for Amazon to expand its growing advertisement business into voice, by giving Alexa the ability to suggest skills when a user asks a question it can’t answer itself.

These new options are not Amazon’s first foray into rewarding developers for creating new skills for Alexa as the company already offers an Alexa Developer Rewards program. Creators of skills that drive high customer engagement are rewarded with cash incentives.

Andi Mann Named @DevOpsSummit Conference Chair | @AndiMann @Splunk #DevOps #CloudNative #Serverless #DigitalTransformation

«DevOps is set to be one of the most profound disruptions to hit IT in decades,» said Andi Mann. «It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the great team at @DevOpsSUMMIT and CloudEXPO tell the world how they can leverage this emerging disruptive trend.»

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Information Booth 2.0 | @ExpoDX #AI #IoT #SmartCities #AI #IoT #DigitalSignage #DigitalTransformation

Before dismissing the information booth as a primitive and outdated concept, stop to consider that advanced analytics are starting to give us the Information Booth 2.0. That’s right! The information booth is still a cutting edge idea!!! It provided just the right information, in the right place, to the right audience. It influenced the customer journey at the very point of consumption. It wasn’t packed with irrelevant information about things that were not consumable then and there. In fact, global organizations are spending billions on marketing analytics trying to replicate the information booth concept for today’s digitally connected consumers and more often than not, failing to replicate the personalized experience that the information booth delivered.

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Enterprise Cloud for #DevOps | @DevOpsSummit @Nutanix @rtpChris #Nutanix #CloudNative #Serverless

At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish,» noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.

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Google will invest in and provide cloud access to startups working with its Google Assistant


Clare Hopping

4 May, 2018

Google has revealed it wants to funnel money in Google Assistant startups, launching an investment programme to help new and small companies get new voice-related ideas off the ground.

“We’re opening a new investment program for early-stage startups that share our passion for the digital assistant ecosystem, helping to push new ideas forward and advance the possibilities of what digital assistants can do,” wrote Nick Fox, VP of search and Google Assistant, and Sanjay Kapoor, VP of corporate development at Google, in a blog post.

Alongside the cash businesses may need to help their ideas become a reality, take on new staff and manage the startups, Google will also offer the businesses coming onboard early access to its upcoming features and tools, advice from Google engineers, product managers, and design experts and the use of its Google Cloud Platform as the means on which to build the tools on.

Google also said it will help businesses promote their new products through its marketing channels, which could be one of the most helpful parts of the new programme, bearing in mind Google’s massive reach.

The tech giant said it will help businesses bring their products and services to market as quickly as possible, presumably reducing risk for Google as well as the startups it’s supporting.

However, Google didn’t reveal how much money would be pumped into the new scheme, but any companies interested on getting onboard and joining the initial investments (GoMoment, Edwin, Pulse Labs and BotSociety) are able to apply online.

Fox and Kapor said the investment scheme is an extension of its Google Assistant and Actions development schemes, which are helping people «get things done in new ways we couldn’t have predicted just a few years ago». 

Image credit: Bigstock 

Omnichannel 1.0 is Dead. Long live Omnichannel 2.0 | @ExpoDX #DigitalMarketing #DigitalTransformation

Traditional retailers have had plenty of time to get their act together, as Amazon is a survivor of the dot-com frenzy of the 1990s. To be sure, they have each implemented one online strategy or another, but as they soon realized, simply selling goods online barely accounts for a blip on Amazon’s inexorable growth trajectory.

As the Digital Era dawned with the rise of smartphones, retailers realized they had to reinvent the sales channel or face extinction. The multichannel strategies of the late 1990s and early 2000s – adding ‘web’ to ‘in-store,’ ‘phone orders,’ and ‘mail order’ – wasn’t going to turn their fortunes around.

And so, omnichannel was born.

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Containers, Microservices, and HCI | @CloudEXPO @Dana_Gardner #CloudNative #Serverless #Docker #Kubernetes #DigitalTransformation

The next BriefingsDirect digital transformation success story examines how local governments in Norway benefit from a common platform approach for safe and efficient public data distribution. We’ll now learn how Norway’s 18 counties are gaining a common shared pool for data on young people’s health and other sensitive information thanks to streamlined benefits of hyperconverged infrastructure (HCI), containers, and microservices.

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Chris Matthieu Named «Smart Cities» Tech Chair of @ExpoDX | @ChrisMatthieu #AI #IoT #IIoT #API #FinTech #SmartCities #DigitalTransformation

Chris Matthieu is the President & CEO of Computes, inc. He brings 30 years of experience in development and launches of disruptive technologies to create new market opportunities as well as enhance enterprise product portfolios with emerging technologies. His most recent venture was Octoblu, a cross-protocol Internet of Things (IoT) mesh network platform, acquired by Citrix. Prior to co-founding Octoblu, Chris was founder of Nodester, an open-source Node.JS PaaS which was acquired by AppFog and the founder of Teleku, a communications-as-a-service cloud platform which was acquired by Voxeo. Chris was also the founder of Digital Voice Technologies, the creator of the first VoiceXML-powered voice browser, which was acquired by Ideas & Associates.

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Bill Schmarzo Named «BigData & Analytics» Tech Chair of @ExpoDX | @Schmarzo @HitachiVantara #AI #BigData #Analytics #DigitalTransformation

Bill Schmarzo, author of «Big Data: Understanding How Data Powers Big Business» and «Big Data MBA: Driving Business Strategies with Data Science» is responsible for guiding the technology strategy within Hitachi Vantara for IoT and Analytics. Bill brings a balanced business-technology approach that focuses on business outcomes to drive data, analytics and technology decisions that underpin an organization’s digital transformation strategy.

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