Here is a cliched question for you, dear reader; if you were blind-folded, could you tell the difference between a Coke and a Pepsi? Numerous studies over the years have generated mixed result with no clear consensus on whether people can reliably tell the difference between the two colas.
So, what does this have to do with cloud?
Here is a slightly less cliched, but similar and significantly more relevant question; would you rather choose AWS or Microsoft Azure?
The fact of the matter is you can have both, one, or neither. The real challenge is understanding the nuances between these robust cloud solutions that will help you make more informed decisions to improve your cost efficiency and continuous improvement.
Devil in the detail: Comparing pricing models
The core concepts of AWS and Microsoft Azure pricing models are similar, the differences lie in the specifics of implementation, flexibility and add-on features. Again, neither option is right or wrong – it really does boil down to what your specific needs and workloads require. But we’ve tried to simplify the comparison for you:
| Pricing Model | AWS | Azure |
|
Pay-as-you-go |
Charges by the hour or second with no upfront costs. |
Charges by the minute, providing more granularity in billing. |
|
Reserved Instances |
Save up to 75% by committing to use AWS for 1-3 years with options for Standard and Convertible Reserved Instances. |
Save by committing to a one- or three-year term with instance size flexibility within the same VM family. |
|
Spot pricing |
Allows users to bid on spare EC2 capacity at lower prices with the risk of termination. |
Similar to AWS Spot VMs, provides preemptible VMs for batch processing and fault-tolerant applications. |
|
Hybrid Benefit |
Offers savings by using existing Windows Server and SQL Server licenses with Software Assurance. |
Azure Hybrid Benefit allows users to use on-premises Windows Server and SQL Server licenses with Software Assurance, with extended support for Linux. |
|
Savings Plan |
Flexible pricing over 1-3 years with reduced rates across various AWS services. |
Provides flexibility to cover multiple resources within the committed spend. |
|
Free Tier |
12-month free tier with various services and limited usage. |
Free tier with different services and usage limits, 12 months of popular free services, always free services, and $200 credit for the first 30 days. |
|
Enterprise Discount Program |
Custom discounts based on a committed annual spend, often used by large enterprises with predictable high usage. |
Offers enterprise agreements with flexibility in hybrid and multi-cloud environments. |
Level up your game, no matter which path you choose
Both cloud providers promote best practices in cost saving management to ensure that you get the most bang for buck. But our never ending to do lists and limited resourcing often prevents us from discovering and making the most of the features and solutions available to save on spending. We’ve taken some of the digging off your hands and summarised the practices for you:
| Best Practice | AWS | Azure |
|
Right-sizing resources |
Regularly review and adjust resource allocations to match actual workload demands. |
Continuously evaluate and adjust virtual machine sizes. |
|
Utilising Savings Plans and Reserves Instances |
Commit to long-term usage for significant discounts. |
Commit to long-term usage for significant discounts. |
|
Leveraging Spot Instances |
Use for flexible, non-critical workloads to save on costs. |
Utilise spot pricing for non-critical workloads to reduce expenses. |
|
Automating Cost Management |
Implement automation tools like AWS Lambda to manage resource usage. |
Use Azure Automation and Azure Functions to manage and scale resources efficiently. |
|
Monitoring and Governance |
Use AWS Cost Explorer and AWS Budgets for detailed cost tracking and alerts. |
Track spending and optimise usage with built-in cost management tools. |
|
Using Azure Hybrid Benefit |
x |
Take advantage of existing licenses for cost savings. |
Both AWS and Azure offer powerful tools and strategies for cost management, each with its own unique approach. By understanding and implementing these strategies, businesses can effectively manage their cloud expenditures, ensuring financial control and efficiency.
Where to from here?
For those looking to dive deeper into specific strategies, we have a detailed step-by-step guide to master your Azure spend and insights on incorporating FinOps with your optimisation strategies.
At Fusion5, we understand that our customers might have a preference that leans one way more than the other. So you get to pick one, both, or neither of our handy guides designed to help your organisation save up to 35% on your cloud spend.
Our hands-on team of experts are in the wings and ready to help you nail this. Simply book a free consultation and we can get you on your way.
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