Summary
When you work in procurement or finance, when you need to assess your Microsoft Azure spending and find savings, where do you begin?
It may be tempting to jump straight into number-crunching. However, it’s better to step back and assess the playing field first.
Here is the list of questions we ask our prospective clients. You can use it to interview your stakeholders and cost centre owners.
1. What is your Microsoft Azure monthly spending?
Understanding your monthly spending on Azure helps gauge the operation's size and the potential optimisation areas.
Follow-up:
Has this spending been consistent over the past year, or have you observed any significant fluctuations?
2. Do you have a set yearly budget for Azure, and are you meeting this budget?
Knowing whether you have an allocated budget and if you are staying within it provides insights into your organisation's fiscal discipline and where overspending might be occurring.
Follow-up:
If you've exceeded the budget in the past, what were the primary causes?
3. Do you have tools in place to manage your Azure budget?
Tools can help streamline and automate cost management processes, making budget tracking more accurate.
Follow-up:
Which specific tools or software are you currently using?
4. Do you compare your monthly forecast to actual spending on Azure?
Regularly comparing forecasted spend to actual spend can reveal patterns of inefficiency or areas of potential savings.
Follow-up:
How often do you review these numbers, and what actions do you take based on the discrepancies?
5. Do you optimise your Azure estate on an ongoing basis?
Continuous optimisation is crucial to ensure that resources are used efficiently and costs are minimised.
Follow-up:
How frequently do you perform optimisation exercises, and who is responsible for them?
6. Do you manage your Azure spending internally or externally?
Some companies may have internal teams to handle this, while others might outsource to external agencies or consultants.
Follow-up:
If externally, who is your current provider or consultant?
7. Is cost optimisation a priority with your stakeholders?
Context: The weightage stakeholders give to cost optimisation can influence the urgency and depth of optimisation efforts.
Follow-up:
How do stakeholders typically react to overages or underspending?
8. Do you have a MACC (Microsoft Azure Consumption Commitment) contract?
A MACC contract often comes with a yearly commitment. Knowing the details can help you strategise for future engagements and potential negotiations.
Follow-up:
What is your yearly commitment, and when is the renewal date? Are there any penalties for not meeting the commitment or benefits for exceeding it?
9. Have you ever conducted a comprehensive Azure cost audit?
An in-depth audit can reveal hidden costs, inefficiencies, or misconfigurations.
Follow-up:
If yes, what were the major findings, and how were they addressed?
10. Are specific Azure services or resources constituting a significant portion of your spending?
Certain services might be more expensive, and understanding this breakdown can pinpoint optimisation areas.
Follow-up:
Are these services essential, or have you considered alternative solutions?
11. Do you use Reserved Instances (RI) or Savings Plans for Azure resources?
Reserved Instances and Savings Plans can offer considerable discounts but require upfront or long-term commitments.
Follow-up:
If yes, when do your current commitments end, and have they resulted in significant savings?
12. Are there departments or teams with higher Azure spending than others?
Understanding if specific departments have higher consumption is helpful, as targeted optimisations can be applied.
Follow-up:
What is the reason for the higher spending, and are there inter-departmental discussions on budgeting and usage?
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