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Guide

Azure cost optimization tooling

What a tool has to do beyond what Azure already gives you for free, which levers actually move the invoice, and what differs for a Swiss estate.

Azure cost optimization tooling covers four jobs: showing where the money goes, finding waste, planning commitments, and applying licence entitlements. Azure's own Cost Management and Advisor do the first two for free and are the right place to start. A paid tool earns its place at the third and fourth — where commitments, entitlements and the Microsoft 365 side of the estate have to be weighed together rather than one resource at a time.

Updated

What Azure already does for free

An honest comparison starts here, because two of the four jobs are already covered.

Job Native Azure Where it stops
Cost visibility and allocation Cost Management, free Stops at the subscription boundary. Multi-tenant and cross-agreement roll-up is not covered.
Rightsizing recommendations Azure Advisor, free Advises per resource without commercial context: it does not know what you committed to, or what a change costs you in a reservation you already own.
Commitment planning Partial Reservations and savings plans are recommended separately, though they interact: reservations apply first, the savings plan covers what is left.
Licence-side levers Not covered Azure Hybrid Benefit, dev/test rates and the Microsoft 365 side of the estate sit outside Azure cost tooling entirely, and they are frequently the larger number.

The levers that move the invoice

Idle and orphaned resources

Unattached managed disks, reserved public IPs on nothing, load balancers with no backend, stopped-but-not-deallocated VMs. None of these show up as a failure; they show up as a line on the invoice.

Rightsizing against real utilisation

A VM sized for a launch that never came stays that size for years. The judgement needs percentile utilisation over weeks, not a spot reading, and it needs to know whether a reservation already covers the current size.

Reservations and savings plans, layered

Reservations reach a deeper discount but bind you to a family and region; savings plans are flexible but shallower. Azure applies the reservation first and the savings plan to the remainder, so the sensible pattern is to reserve the stable baseline and flex the rest.

Azure Hybrid Benefit

Existing Windows Server and SQL Server licences with Software Assurance can be applied to Azure compute. It is a licensing entitlement, not a portal setting, which is why cost tooling rarely surfaces it and why it is so often left unclaimed.

The order is deliberate. Removing waste costs nothing and needs no commitment. Rightsizing changes what you should commit to. Only once the shape of the estate is settled does a multi-year commitment make sense — commit first and you have locked in the size you were about to reduce.

What differs in Switzerland

Related reading

Questions, answered

Is Azure Cost Management enough on its own?+
For visibility and budget alerts on a single subscription, usually yes — and it is free, so it is the right starting point. It becomes insufficient when you need cross-subscription or cross-tenant roll-up, when commitments and licence entitlements have to be weighed together, or when a recommendation has to account for what you have already committed to.
Reservations or savings plans?+
Both, layered. Reservations give the deeper discount on workloads whose family and region have been stable for months. Savings plans cover variable compute without pinning you to an instance type. Azure applies the reservation first and the savings plan to whatever remains, so they are complements rather than alternatives — the real decision is how much of your baseline is genuinely stable.
Why do savings estimates differ so much between tools?+
Because most of them price the target state at list. A recommendation that ignores your existing reservations, your Hybrid Benefit entitlements and your agreement's actual rates will overstate the saving — usually in the direction that makes the recommendation look good. Ask any tool what rate it used, and for which agreement.
Do we need a Swiss provider for this?+
Not by regulation, in most cases. It matters where your cost and usage data is processed, whether the provider can reason in your billing currency rather than converting at the end, and whether they understand the Swiss price list as its own list rather than a euro derivative.

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