(bright electronic music)
Now we're going to expand on how optimization is the key
to get the most value
from your cloud investment during migration
so that you can realize your business goals.
Whether your business goals are to accelerate growth,
drive sustainable innovation,
or realize cost benefits of the cloud,
optimization should be included
from the moment you start planning your migration
to the point that you're deploying workloads and beyond.
But first,
I'd like to share how we think about optimization
as it pertains to cloud adoption.
Optimization happens at all phases of the cloud journey,
and it starts as soon as you plan for migration.
Cost management is one of the most important things
an organization can do to ensure successful migration
and ultimately digital transformation.
It consistently ranks
as one of the top priorities for customers,
particularly during the economic climate
we find ourselves in today.
When it comes to cloud investment,
a couple of key factors tend
to prevent successful cloud adoption.
These are loss of financial control
as well as increasing cloud spend.
However, we've found that when customers take advantage
of Azure guidance, offers,
and tools during migration,
they can mitigate these common challenges.
Optimizing your cloud environment and workloads
is another critical part of the cloud adoption journey.
Giving proper consideration
to how you'll set up your cloud environment ensures
that your workloads are secure,
reliable, cost-effective, and sustainable.
We understand the complexity of creating workloads
that achieve these benchmarks,
which is why we've developed technical guidance
as well as tools such as the Azure landing zones
and Well-Architected Reviews.
These help you design, build,
and manage cloud environments and workloads
according to your unique business needs.
To understand where you're focused
to optimize your cloud spend and workloads,
ensuring ongoing cloud success.
In this session,
we'll cover optimization
throughout your cloud adoption journey.
I'll kick things off and speak about
how implementing financial practices
can improve migration costs.
Then, Tanuja Shah will share Microsoft guidance
on how to design cloud environments and architect workloads.
Following that, Jose Portugal will demonstrate
how you can use Azure Advisor to optimize workload cost.
Finally, we'll end with a look at key optimization resources
to help you get started.
So, let's talk about how you can manage
and control costs during migration.
At Microsoft, we enable customers to achieve business goals
by guiding your migration journey through a proven framework
that supports you to achieve your objectives.
The Cloud Adoption Framework is a set of best practices
that can support you in a planned,
cost-effective cloud migration.
In addition, you can use our cost calculators
and Azure Migrate.
This product provides a unified platform
that uses insight from discovered assets
to assess suitability and cost
before migrating to and modernizing in Azure.
And finally, to better optimize your investments,
you could take advantage of Azure's savings opportunities,
which allow organizations to achieve efficiency
and reduce costs.
Azure Hybrid Benefit, Reserved Instances,
and Azure savings Plan for Compute are great options
for you to significantly reduce migration costs.
Research shows a correlation
between effective cost management
and strong enterprise performance.
At Microsoft,
we aim to provide the guidance you need
to build cost management best practices
into your organizations.
And, as part of our commitment to support you,
we have exciting news.
Earlier this year,
Microsoft joined the FinOps Foundation.
This partnership has far-reaching implications
for customers seeking to derive greater business value
from the cloud.
FinOps, short for Financial Operations,
refers to a framework that promotes the best practices
to guide organizations to manage and optimize cloud costs.
This discipline supports organizational and cultural changes
to empower teams to maximize the cloud business value.
The adoption of FinOps can play a significant role
in supporting your organization to reduce migration costs.
As part of the disciplines,
FinOps promotes collaboration,
accountability, access to data,
and decisions driven by business value.
It also highlights the value of a centralized team
and the understanding
that the variable cloud cost model is an opportunity,
not a problem.
Some capabilities of FinOps
that support migration are cost optimization,
cost allocation or distributing spend
to the proper business units or cost or profit centers,
resource utilization,
are you leveraging your cloud target
in the best way possible?
Forecasting and as well as many other capabilities.
Microsoft is already working to develop guidance
that will help you learn,
adopt, and drive FinOps through Azure solutions.
Look for more FinOps guidance coming from us
over the next couple months.
Exciting content and opportunities coming.
Now let's see what you can do today
to optimize your cloud environment and workloads.
I'd like to introduce Tanuja Shah to lead this discussion.
(air whooshes)
- Thank you, Jeff, for that warm welcome.
Planning and execution are two very important phases
in your cloud adoption journey.
It is also critical to understand
how your budgeting, cost allocation,
and cost optimizing can have an impact on other areas,
such as security, performance,
operations, and reliability.
It is important to consider these key areas
as you begin with your digital transformation.
Let's talk about some of the best practices
and considerations in the strategy and plan methodologies.
First, a team of decision makers in three key areas,
such as business, finance, and technology
should assess their current environments
and determine the best way forward.
This team should build a strategy with an intent
and a centralized planning approach.
The assessment of your current environments
should have outcomes like organizational structure,
roles and responsibilities,
cost management, policy guardrails,
and technical skills.
Ideally, you will have these in place
before your IT professionals begin defining
and implementing cloud environments,
but it doesn't end there.
The team of decision makers will continually adopt
and evolve plans as business conditions or strategies change
and new information becomes available.
At the same time,
Azure is constantly improving,
and you'll want to take advantage of these changes
for both cost savings and better return on investments.
To that end,
allow me to elaborate into Cloud Adoption Framework
by outlining the five necessary steps
to design for optimization,
the first step being its governing body.
Given the elasticity and agility
of cloud services offerings,
there is a need to align the business goals
and technical decisions while keeping cost in mind.
In our governance-ready methodologies
of Cloud Adoption Framework,
we prescribe the empowerment of a Cloud Center of Excellence
that drives the best practices for architecture,
policies, cost modeling,
and other key areas of adopting cloud services.
It's like building a house.
You need a blueprint,
you need foundation and layout of your rooms.
Similarly, once the central team of decision makers
are aligned on an adoption process,
we recommend laying the foundation for workloads
with Azure Landing Zone.
This landing zone facilitates a strong foundation
for your workloads
by packaging subscription management
with the hierarchy of management groups,
access control, initial safeguarding policies,
monitoring, and other key configurations.
Keep in mind,
landing zones should be tailored to fit your requirements
based on specific use cases.
The adopt methodology of Cloud Adoption Framework
provides guidance to tailor your landing zone
for more specific use cases,
such as are you migrating, modernizing,
and/or developing cloud-native applications?
Each workload has specific functional
and non-functional requirements.
The Cloud Center of Excellence
should be consulting the workload teams
during the design and build phases of a given workload
so that there is consistent application of cost policies
but adapted to reflect the specific needs of the workload.
With the strong foundation of Azure Landing Zone,
you are now ready to start thinking
about your workload implementation.
Well-Architected Framework
and its best practices will guide you in this area.
It is critical that you test your workload
in test environments that emulate production environments.
Testing the workload will allow you
to run your workload effectively and efficiently
while meeting user requirements.
While we're discussing workloads,
you should consider what are trade-offs
as you cost-optimize a given workload.
Workload types and environments can influence a range
of trade-offs.
For instance, workloads deployed in dev and test environment
are going to have very different set of cost,
security, and reliability requirements
compared to those in production.
On other hand,
workloads that have specific high availability
or security requirements will cost more
than your standard workloads.
This slide describes the cost optimization process cycle.
We focus on five steps,
with the fifth step empowering you
to continue the process internally with your teams.
First, you want to gather, analyze data
to identify and confirm optimization opportunities.
Decide on which opportunities to pursue and implement them.
Then, set up the reviews going forward.
Once the first optimization efforts are completed,
document and institutionalize the process
with the core team.
This will help you to work on continuously improving
your cost efficiency.
Now that we've covered optimizing your environment
and workloads,
I'm going to highlight couple of Azure services
that help you follow optimization best practices
for your workloads post-deployment.
One of the keys to optimization is avoid unexpected,
over-budgeted, and unpredicted costs.
What I often recommend to customers
is to start with Microsoft Cost Management.
Microsoft Cost Management is a suite of tools
that help you monitor, allocate,
and optimize cost of your workloads.
It is readily available to Azure Portal
and via several billing usage APIs.
With the use of Microsoft Cost Management,
you can set budgets,
analyze spending patterns,
and optimize your cloud resources
to control cost and avoid unexpected charges
by setting up cost alerts,
cost analysis report, and cost forecasts.
You can explore your cloud user data
from Microsoft Cost Management to other tools,
such as Excel and Power BI.
These tools allow you to gain deeper insights
into your cloud spending patterns,
identify areas where you can optimize your spending,
and make informed decision about your cloud investments.
At Microsoft,
we're obsessed with empowering everyone,
and we have a great tool
to help keep you informed of opportunities to optimize,
your very own Azure Advisor.
Azure Advisor analyzes your deployed resources,
configuration, and usage patterns
to provide personalized recommendations to reduce cost,
improve performance, security, and availability.
For example, it may showcase cost-saving recommendation
that you resize or shut down underutilized virtual machines
and a recommendation to warn you
about an unsecured virtual machine.
It is important to understand
that you don't need to follow
all the recommendations at once.
Azure Advisor prioritizes their recommendations
based on their impact
and provides you with a score
that reflects how actively you are implementing them.
Every recommendation that is implemented
improves the health of your workload.
To learn more about Azure Advisor,
I want to invite Jose Portugal
to demo some of the capabilities
that make Azure Advisor a critical companion
of your optimization journey.
Take it away, Jose.
(air whooshes)
- Thanks, Tanuja.
Today, we are going to explore how you can use Azure Advisor
to reduce costs in your Azure environment.
Azure Advisor is a cloud-based service
that analyzes your resources
and provides recommendations and best practices
to optimize them.
Azure Advisor also provides some great features
for cost optimization.
First, let's take a look at
how you can get to Azure Advisor from the Azure Portal.
From the Portal landing page,
you can get to Azure Advisor a couple different ways.
You can expand the sidebar
and scroll down to the section named Advisor,
or you can use the top search bar and type Azure Advisor.
Once you reach the Advisor Portal,
you will be presented with your Advisor score,
which represents how well optimized your resources are.
You can track the progress of your score by month,
week, or day,
and you can also take a look at the specific scores
for each of the categories covered by Azure Advisor.
For now, let's focus on cost optimization.
Click on the cost tab
to see all of your cost-related recommendations.
Here, you will see a detailed summary
of the recommendations Advisor has for you.
This includes the number of different recommendations,
a breakdown by impact,
the number of resources impacted,
as well as the potential yearly savings you could get
if you implemented all of these recommendations.
Now let's take a look at how we can use filters
to further refine our recommendations.
By filtering the recommendations by subscriptions
or resource group or resource type,
we can narrow down recommendations
to a specific set of resources.
This will help us focus on the areas
of our Azure environment that need the most attention.
Next, let's review a couple
of the most popular cost recommendations
provided by Azure Advisor.
The first one is right-size
or shutdown underutilized virtual machines.
When you click on any of your Advisor recommendations,
you will be presented with a brief explanation
of the recommendation itself,
with a list of all the resources impacted
by the recommendation.
In this case, Azure has analyzed the usage patterns
of my deployed virtual machines
and has identified a few
that have consistent low usage.
Therefore, it is recommending
that I right-size those machines
to a size that benefits the usage.
You can see some details
for each one of the impacted resources,
such as the name of the virtual machine,
the recommended action,
the potential yearly savings based on discounted pricing,
and some additional information relevant
to this recommendation.
Now let's take a look at
how to implement these recommendations.
Every Advisor recommendation will have a column
called recommended actions.
When you click on these recommended actions,
they will take you to the right place on the Azure Portal
where the changes can be applied,
or they will take you to the documentation
that contains the instructions
for a specific recommendation.
In this case,
let's take a look at the recommended action named resize.
When I click on it,
Advisor will bring me to the section of the Azure Portal
where I can make changes to the size of my virtual machines.
Using the details that were included in my recommendation,
I can now select the right size for my virtual machine.
Finally, let's review another kind
of popular recommendation,
Reserved Instances.
Reserved Instances recommendations are offered
for a variety of resources.
In this case,
you can see that I have recommendations for Cosmos DB,
App Service, Azure Files, and more.
Let's select Azure Files.
To generate this recommendation.
Azure has analyzed my usage of Azure Files
and determined that it remains relatively constant
over a certain period of time.
Based on this information,
Advisor is suggesting that I can make a reservation
for one year or three years
and get a better price than I will get
by paying for this resource on demand.
Just as before,
we can see the list of impacted resources
and some details about the recommendation
as well as the list of recommended actions
for each resource.
To summarize,
Azure Advisor is a powerful tool
for cost optimization in Azure.
By using filters and actions to implement recommendations,
we can reduce costs and ensure
that our Azure environments is running at peak efficiency.
I hope this demo was helpful
and it will help you optimize your resources within Azure.
Back to you, Jeff.
(air whooshes)
- Tanuja and Jose,
thank you for sharing how best
to optimize your cloud environments and workloads,
it's always a pleasure presenting with you.
At Microsoft,
our goal is to help you accelerate growth,
increase performance,
and drive innovation throughout your business,
and you could do that
while optimizing your cloud investment,
from migration through workload deployment.
Here's a quick summary of the key resources and tools
we discussed today.
The pricing calculator
and Azure Migrate are both excellent tools to use
while you're planning your migration.
Get ready for a deep dive to the benefits of Azure Migrate
in the upcoming session.
Azure landing zones are critically important
to set up your cloud environment
because they enable you to design and build workloads
that are reliable, secure,
and cost-efficient.
And as we just discussed,
Microsoft Cost Management
and Azure Advisor are helpful tools
to optimize your budget and workloads post-deployment.
An added benefit to this is that they're both included
with your Azure subscription.
As you prepare to optimize your migration,
a great next step is to check out a few key learning paths
within MS Learn.
You can find links to jumpstart your training
on Microsoft Cost Management, Azure Advisor,
and Azure landing zones on this slide.
I hope this session has given you the guidance, resources,
and tools to confidently move workloads to the cloud
and optimize your cloud investment every step of the way.
Thank you so much for joining us today.
This subject of FinOps and cloud optimization
and cost management is a personal passion of mine,
so I'd love to share it with you.
(air whooshes)
(bright electronic music)