Do you proactively notify about expected spikes in Azure Resource costs?

Last updated by Brook Jeynes [SSW] 6 months ago.See history

Always inform stakeholders in advance if you anticipate a significant increase in Azure resource costs. This proactive communication is crucial for budget planning and avoiding unexpected expenses.

Why This Matters

  1. Budget Management: Sudden spikes in costs can disrupt budget allocations and financial planning.
  2. Transparency: Keeping stakeholders informed fosters trust and transparency in operations.
  3. Planning: Advance notice allows for better resource allocation and potential cost optimization strategies.

How to Implement

  • Communicate Early: As soon as a potential cost increase is identified, communicate this to relevant stakeholders.
  • Provide Details: Include information about the cause of the spike, expected duration, and any steps being taken to mitigate costs.

Scenarios

A team needs to perform a bulk update on millions of records in an Azure Cosmos DB instance, a task that requires scaling up the throughput units substantially. They proceed without notifying anyone, assuming the cost would be minimal as usual. However, the intensive usage for a week leads to an unexpectedly high bill, causing budgetary concerns and dissatisfaction among stakeholders.

Figure: Bad example - Nobody likes a surprise bill

Before running a large-scale data migration on Azure SQL Database, which is expected to significantly increase DTU (Database Transaction Unit) consumption for a week, the team calculates the expected cost increase. They inform the finance and management teams, providing a detailed report on the reasons for the spike, the benefits of the migration, and potential cost-saving measures.

Then send an email (as per the template below)

Figure: Informing and emailing stakeholders before a spike makes everyone happy

Email template


Remember, effective communication about cost management is key to maintaining a healthy and transparent relationship with all stakeholders involved in your Azure projects.

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