Updated: July 16, 2020 (March 20, 2017)

Azure VM Costs Explained

Wes Miller analyzes and writes about Microsoft’s security, identity management, and systems management technologies. Before joining Directions on Microsoft, Wes... more

Multiple charges combine to determine the total cost of running a workload within an Azure Virtual Machine (VM). In this graph, the costs for running two different types of sample workloads, a SQL Server database and a domain controller, are shown, with all software rented in a pay-as-you-go model. All charges are per month and based on West US region pricing as of Mar. 2017.

Compute resources and Windows Server rental costs. Azure offers multiple “sizes” of VMs, and in this comparison an Azure DS3V2 VM instance was chosen for both workloads. The cost of running this VM is approximately US$207.58 (shown in the bottom-most rectangle for both workloads), with an additional charge of US$187.48 for Windows Server Datacenter edition, shown in the second rectangle from the bottom for both workloads. An organization can reduce these charges by using the Azure Hybrid Use Benefit (Azure HUB), which allows them to run Windows Server in an Azure VM for the cost of compute charges alone if they have Software Assurance (SA) on Windows Server on-premises.

Atlas Members have full access

Get access to this and thousands of other unbiased analyses, roadmaps, decision kits, infographics, reference guides, and more, all included with membership. Comprehensive access to the most in-depth and unbiased expertise for Microsoft enterprise decision-making is waiting.

Membership Options

Already have an account? Login Now