Overview of the cost optimization pillar
The cost optimization pillar of Well-Architected for Industry guides you on optimizing costs while still meeting business and technical requirements. This area focuses on designing, building, and operating solutions in a cost-efficient manner.
The cost-optimization pillar includes the following key areas:
Cost-effective resources: Select and use the most cost-effective resources to meet the workload requirements. Includes the following actions:
- Use services with the right pricing model.
- Select the right instance types.
- Use reserved instances or savings plans where appropriate.
Matching supply with demand: Align the resources provisioned with the actual demand for the workload. Includes the following actions:
- Use autoscaling to dynamically adjust resources based on demand.
- Implement usage-based pricing models.
- Use spot instances or spot VMs to take advantage of lower prices when available.
Optimizing resource utilization: Identify and address inefficiencies in resource utilization. Includes the following actions:
- Use performance monitoring and analysis tools to identify idle or underutilized resources.
- Implement resource optimization techniques such as right-sizing or serverless architectures.
- Use automation to improve operational efficiency.
Managing costs over time: Continuously monitor and optimize costs over time. Includes the following actions:
- Set and monitor cost budgets.
- Use cost allocation and tagging to identify cost centers and optimize costs.
- Use cost optimization tools and services provided by cloud providers or third-party vendors.
The following table summarizes the division of responsibility of the cost-optimization pillar for each service type:
| Type of service | Microsoft responsibility | Customer responsibility | Some components used in Microsoft Cloud industry solutions |
|---|---|---|---|
| On-premises | N/A | Responsible for the whole stack. | On-premises data gateway |
| IaaS | Optimize the cost of the underlying infrastructure, including the physical servers, storage, and networking components. | Optimize the cost of their applications and workloads that run on top of the infrastructure. Includes tasks such as choosing the right instance size, monitoring usage, and implementing autoscaling policies. | Azure Virtual Network, Azure Virtual Machines (VMs) |
| PaaS | Optimize the cost of the underlying platform, including the runtime environment, databases, and messaging systems. | Optimize the cost of their applications and services that run on top of the platform. Includes tasks such as monitoring usage, optimizing resource utilization, and implementing autoscaling policies. | Power Platform, Azure Health Data Services, Azure Storage Services, Azure Analytics Services, Azure Logic Apps, Azure Kubernetes Service (AKS) |
| SaaS | Optimize the cost of the entire software application and associated services, including the data it processes and stores. | Optimize the cost of their user accounts and access controls. Includes tasks such as managing licenses, Dataverse storage, monitoring user activity, and optimizing resource utilization. | Dynamics 365, Microsoft 365 |