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AZ-900 · Domain 3: Describe Azure management and governance · 34% of the exam

Task 3.1: Describe cost management in Azure

What drives Azure costs, estimating with the pricing calculator, tracking and controlling spend in Cost Management, and tags.

Study it

  • What drives Azure costs, and estimating with the pricing calculator

    Partly covered by: AWS Cost Levers

  • Cost Management, budgets and tags

    Lesson coming

Sample questions

Try each one before opening the answer. Every option is explained, with the Microsoft documentation page that proves it.

Question 1 · choose 1

Before deploying anything, a project lead wants a monthly cost estimate for two VMs, a storage account and outbound data transfer in a chosen region. Which tool should she use?

  1. ACost analysis in Microsoft Cost Management
  2. BBudgets in Microsoft Cost Management
  3. CAzure Advisor
  4. DThe Azure pricing calculator
Show the answer and why
  • ACost analysis in Microsoft Cost Management

    Incorrect

    Cost analysis shows the costs of resources you've already deployed, so it has nothing to report before deployment.

  • BBudgets in Microsoft Cost Management

    Incorrect

    A budget tracks spending against a limit once resources exist; it doesn't price a planned design.

  • CAzure Advisor

    Incorrect

    Advisor works on resources that already exist, so it can't price a design before deployment.

  • DThe Azure pricing calculator

    Correct

    The pricing calculator estimates the cost of resources you plan to provision, including compute, storage and network costs, without creating anything.

The pricing calculator gives an estimated cost for resources before you provision them, for single resources or whole solutions, and lets you compare regions, tiers and redundancy options. Nothing is provisioned and nothing is charged; the result is an estimate only.

Question 2 · choose 1

A team creates a monthly budget of $2,000 on its subscription with an alert at 100%. Spending reaches $2,100 with a week of the month left. What happens to the team's resources by default?

  1. AThe subscription's resources are stopped until the next billing month
  2. BThey keep running; the budget alerts, and any shutdown needs automation
  3. CNew deployments are blocked while existing resources keep running
  4. DThe subscription is locked against changes until the budget is raised
Show the answer and why
  • AThe subscription's resources are stopped until the next billing month

    Incorrect

    A budget doesn't stop resources by itself. Microsoft states that resources aren't affected and consumption isn't stopped.

  • BThey keep running; the budget alerts, and any shutdown needs automation

    Correct

    Budgets notify when thresholds are exceeded. To act on resources, the team can have the budget call an action group that runs automation.

  • CNew deployments are blocked while existing resources keep running

    Incorrect

    A budget has no way to block deployments; it tracks spending against a limit.

  • DThe subscription is locked against changes until the budget is raised

    Incorrect

    A budget has no way to lock a subscription against changes.

A budget tracks actual or forecast cost against a limit and sends alerts when thresholds are crossed. Resources aren't affected and consumption isn't stopped. If the team wants, for example, nonproduction VMs shut down at a threshold, it configures the budget to trigger an action group that runs that automation.

Question 3 · choose 1

Finance wants monthly Azure costs per internal cost center. Each cost center's resources are spread across several resource groups and subscriptions that other cost centers also use. What should the cloud team add to the resources?

  1. AA management group for each cost center
  2. BA resource lock for each cost center
  3. CAzure Advisor cost recommendations for each cost center
  4. DA CostCenter tag with each cost center's code
Show the answer and why
  • AA management group for each cost center

    Incorrect

    A management group can't separate one cost center's resources from others inside a shared subscription.

  • BA resource lock for each cost center

    Incorrect

    Resource locks prevent deletion or change; they carry no cost information.

  • CAzure Advisor cost recommendations for each cost center

    Incorrect

    Advisor looks for savings in existing resources; it doesn't assign spending to cost centers.

  • DA CostCenter tag with each cost center's code

    Correct

    Tags are name and value pairs on resources, and costs can be grouped and reported by them across resource groups and subscriptions.

Tags add metadata to resources, and one of their main uses is cost management: grouping resources to report on costs, allocate internal cost centers, track budgets and forecast. Because tags sit on the resources themselves, they cut across resource groups and subscriptions.

Question 4 · choose 2

An admin creates a Windows Server VM in an availability set, with a network security group and the default operating system disk. Which two of these add their own charges to the bill? (Choose TWO.)

  1. AThe network security group attached to the VM
  2. BThe Windows Server license, priced by the VM's number of cores
  3. CThe VM's local temporary disk
  4. DThe managed operating system disk
  5. EThe availability set that the VM is placed in
Show the answer and why
  • AThe network security group attached to the VM

    Incorrect

    There are no additional charges for network security groups in Azure.

  • BThe Windows Server license, priced by the VM's number of cores

    Correct

    The OS license is a separate cost that varies with the VM's number of cores.

  • CThe VM's local temporary disk

    Incorrect

    Every VM also has a local temporary disk, and Azure doesn't charge for local disk storage.

  • DThe managed operating system disk

    Correct

    The OS disk is charged at the regular rate for managed disks.

  • EThe availability set that the VM is placed in

    Incorrect

    Availability sets don't add cost; you pay for the VM instances in them.

Creating a VM also creates supporting resources, and some carry their own costs: the operating system disk is billed at managed disk rates and a Windows license is billed by core count. Network security groups, availability sets and the local temporary disk carry no charge of their own.

Question 5 · choose 1

An architect prices the same VM size with the same disks in two Azure regions and gets two different monthly costs. What explains the difference?

  1. AThe pricing calculator adds a different promotional discount to each estimate
  2. BCosts of power, labor, taxes and fees differ between locations
  3. COne of the regions has availability zones and charges for them
  4. DThe more expensive region includes a reservation by default
Show the answer and why
  • AThe pricing calculator adds a different promotional discount to each estimate

    Incorrect

    The pricing calculator estimates the configuration you build; it doesn't add discounts of its own.

  • BCosts of power, labor, taxes and fees differ between locations

    Correct

    Azure prices vary by region because the cost of power, labor, taxes and fees differs from location to location.

  • COne of the regions has availability zones and charges for them

    Incorrect

    Region-to-region price differences come from local operating costs, not from a charge for having zones.

  • DThe more expensive region includes a reservation by default

    Incorrect

    Reservations are bought separately and lower prices; they aren't added to an estimate unless you choose them.

Geography is one of the factors that affect Azure costs. Because power, labor, taxes and fees differ by location, the same resource can cost different amounts in different regions.

Question 6 · choose 1

A company uploads 50 TB of logs into Azure each month and downloads 5 TB of reports from Azure back to its offices. Which part of this traffic generally adds data transfer charges?

  1. AThe 50 TB going into Azure, because uploads are charged per gigabyte
  2. BBoth directions equally, at one global rate per gigabyte
  3. CNeither direction, because data transfer is included in storage prices
  4. DThe 5 TB leaving Azure, priced by billing zone
Show the answer and why
  • AThe 50 TB going into Azure, because uploads are charged per gigabyte

    Incorrect

    Data going into Azure datacenters is generally free of transfer charges.

  • BBoth directions equally, at one global rate per gigabyte

    Incorrect

    Inbound and outbound transfers aren't priced the same, and outbound rates depend on billing zones.

  • CNeither direction, because data transfer is included in storage prices

    Incorrect

    Storage and bandwidth are separate cost items; outbound data transfer is charged.

  • DThe 5 TB leaving Azure, priced by billing zone

    Correct

    Outbound data transfer, data leaving Azure datacenters, is charged based on billing zones.

Bandwidth is data moving in and out of Azure datacenters. Some inbound transfers, data going into Azure, are free, while outbound transfers are priced by billing zone.

Question 7 · choose 1

A student developer wants to explore Azure at no cost with a free account. What does the Azure free account include?

  1. AFree use of popular products for 12 months, plus a 30-day credit
  2. BUnlimited use of any Azure service for one year
  3. CA three-year reservation discount on any VM size
  4. DFree access to Microsoft 365 apps for the first 30 days
Show the answer and why
  • AFree use of popular products for 12 months, plus a 30-day credit

    Correct

    The free account gives 12 months of free access to popular products and a credit to spend in the first 30 days, plus always-free services.

  • BUnlimited use of any Azure service for one year

    Incorrect

    Free access covers popular products and has limits; it isn't unlimited use of all of Azure.

  • CA three-year reservation discount on any VM size

    Incorrect

    Reservations are paid commitments, not part of a free account.

  • DFree access to Microsoft 365 apps for the first 30 days

    Incorrect

    The Azure free account covers Azure products, not Microsoft 365.

Subscription type is one of the factors that affect cost: some subscriptions include usage allowances. The Azure free account offers free access to popular Azure products for 12 months, a credit to use within the first 30 days and services that are always free.

Question 8 · choose 1

A company owns Windows Server core licenses with active Software Assurance and is moving those servers to Azure VMs. How can it lower the cost of the Windows licensing part of the VM price?

  1. AApply Azure Hybrid Benefit to the VMs
  2. BRun the VMs as Azure Spot Virtual Machines
  3. CBuy the Windows Server image from Azure Marketplace
  4. DPlace the VMs in an availability set
Show the answer and why
  • AApply Azure Hybrid Benefit to the VMs

    Correct

    Azure Hybrid Benefit lets on-premises Windows Server core licenses with Software Assurance or qualifying subscriptions cover Windows VMs in Azure at reduced cost.

  • BRun the VMs as Azure Spot Virtual Machines

    Incorrect

    Spot pricing changes the compute rate, not who supplies the Windows license.

  • CBuy the Windows Server image from Azure Marketplace

    Incorrect

    Marketplace images include their own license charges; they don't apply licenses the company already owns.

  • DPlace the VMs in an availability set

    Incorrect

    Availability sets improve resiliency and don't change licensing costs.

A Windows Server license is part of the cost of a Windows VM and scales with its core count. With Azure Hybrid Benefit, customers with eligible on-premises core licenses under Software Assurance or a qualifying subscription use them for Azure VMs and pay a reduced rate.

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