Microsoft Azure

Cost Management & the Well-Architected Framework

Cut spend without cutting capability, and name the five pillars an architecture review scores against.

The Azure Well-Architected Framework has five pillars, and they do get asked by name.

A household bill. The savings are not in a cheaper kettle but in the immersion heater nobody remembered was on and the subscription nobody cancelled.

Key Concepts

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    Reliability              recover from failure, meet demand
    Security                 identity, data protection, detection
    Cost Optimisation        avoid unnecessary spend
    Operational Excellence   deploy and monitor well
    Performance Efficiency   use the right resources
2
Pricing levers, roughly in order of saving.
    pay-as-you-go     no commitment, highest rate
    Reserved Instances 1 or 3 years, up to ~72% off
    Savings Plans     commit $/hour, flexible across services
    Spot VMs          spare capacity, deep discount, evictable
    Azure Hybrid Benefit  reuse existing Windows Server and SQL
                      licences -- often the single largest saving
                      and uniquely Azure
3
Hybrid Benefit is the Azure-specific answer and worth leading with: organisations moving from on-premises frequently already own the licences, and applying them can cut Windows and SQL compute cost by half.
4
Where money actually leaks.
    oversized VMs                    Advisor rightsizing
    unattached managed disks         VM deleted, disk kept
    orphaned public IPs and NICs
    non-production running overnight and at weekends
    premium storage tiers for cold data
    egress and cross-zone traffic
    old snapshots nobody owns
5
Blob lifecycle rules are the easiest large saving. Hot to Cool at 30 days, Archive at 90, delete at a retention limit.
6
Tag everything and enforce it with Policy. Without team, env and costCenter tags, Cost Management cannot attribute spend, and nothing improves while nobody owns the number.
teamenvcostCenter
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Budgets and alerts fire at thresholds and can trigger automation. Azure Advisor gives concrete rightsizing and reservation recommendations — a sensible first pass before any manual review.
8
Measure before optimising. Compute is usually the biggest line, but egress, premium disks and forgotten non-production environments are where the surprises hide.
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What the interviewer is probing.1. "Name the Azure Well-Architected pillars." Probing: the framework. Stalls: "Cost and performance." Moves up: reliability, security, cost optimisation, operational excellence and performance efficiency.
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2. "What is the largest Azure-specific saving for a migrating organisation?" Probing: Hybrid Benefit. Stalls: "Reserved instances." Moves up: Azure Hybrid Benefit — applying Windows Server and SQL licences they already own, which often halves that compute cost.
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3. "Where does spend leak?" Probing: the unglamorous items. Stalls: "Oversized VMs." *Moves up:* unattached disks, orphaned public IPs, premium storage for cold data, non-production running overnight, and egress and cross-zone traffic.
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4. "How do you make spend visible per team?" Probing: tagging. Stalls: "Look at the bill." Moves up: enforced tags via Azure Policy, so Cost Management can attribute it and someone owns the number.