Sample Azure CostIQ Report
Prepared by MTSL DevOps Team
📅 Q4 2025: October 1 - December 31, 2025Monthly Cost Breakdown
Cost by Service (Q4 Total)
| Service | Q4 Cost | % of Total | Distribution |
|---|---|---|---|
|
Storage & Data Transfer
|
$89,456.28 | 28.6% | |
|
Virtual Machines & Licenses
|
$78,934.15 | 25.2% | |
|
Network & Connectivity
|
$52,847.62 | 16.9% | |
|
Application Services
|
$38,291.84 | 12.2% | |
|
Database Services
|
$28,456.73 | 9.1% | |
|
Load Balancing & Security
|
$18,734.92 | 6.0% | |
|
Backup & Recovery
|
$8,927.45 | 2.9% | |
|
Messaging & Events
|
$5,843.17 | 1.9% | |
|
Other Services (26)
|
$11,355.40 | 3.6% |
Cost Optimization Recommendations
Potential Savings: upto $240,000/yearStorage Optimization & Tiering
Storage costs are $89,456.28/quarter ($357,825/year). Review blob storage access patterns - data not accessed in 30+ days should move to Cool tier (50% savings), and archive-eligible data to Archive tier (90% savings). Implement lifecycle management policies across all storage accounts to automatically transition data.
Reserved Instances for Compute
VM and license spend of $78,934.15/quarter ($315,737/year) indicates consistent workloads. Purchasing 1-year Reserved Instances can save up to 40% on compute costs. Consider Azure Hybrid Benefit for Windows Server licenses to save an additional 40% on licensing costs.
Network Connectivity Review
Network and connectivity costs are $52,847.62/quarter ($211,390/year). Review ExpressRoute circuit bandwidth utilization - if consistently under 50%, consider downgrading to a smaller circuit. Evaluate if ExpressRoute Local (unlimited data) would be more cost-effective based on your data transfer patterns.
Right-Size Virtual Machines
Review CPU and memory utilization metrics across all VMs - instances consistently under 40% utilization should be downsized to smaller SKUs. This can reduce compute costs by 30-50% without impacting performance. Use Azure Advisor recommendations to identify candidates for right-sizing.
Application Service Consolidation
Application Services costs are $38,291.84/quarter ($153,167/year). Review if multiple App Service plans can be consolidated. Consider using Azure Container Instances or App Service Environment for better cost efficiency. Evaluate auto-scaling policies to match demand patterns.
Database Performance Tuning
Database Services costs are $28,456.73/quarter ($113,827/year). Review database DTU/vCore utilization - over-provisioned databases can be downgraded. Implement query optimization and indexing strategies to reduce resource consumption. Consider managed instances for better pricing on multi-database workloads.
Dev/Test Environment Scheduling
Resources in test and development environments are running 24/7. Implement auto-shutdown schedules for non-production VMs during nights and weekends to reduce costs by 65%. Use Azure DevTest Labs for better management of development environments with built-in cost controls.
Orphaned Resources Cleanup
Review and delete orphaned resources: unattached disks, unused public IPs, empty resource groups, and old snapshots. These resources continue to incur charges even when not in use. Implement a quarterly cleanup process to identify and remove unused resources.
Top Resource Groups by Cost
| Resource Group | Q4 Cost | % of Total | Primary Services |
|---|---|---|---|
| prod-rg-compute | $198,847.23 | 63.6% | Virtual Machines, VM Licenses, Storage |
| prod-rg-network | $52,847.62 | 16.9% | ExpressRoute, Load Balancing, VNet |
| prod-rg-data | $28,456.73 | 9.1% | Database Services, Backup |
| prod-rg-apps | $18,734.92 | 6.0% | App Service, API Management |
| dev-rg-shared | $8,927.45 | 2.9% | Dev/Test Resources, Monitoring |
| Other (57 groups) | $5,193.61 | 1.7% | Various |
Action Plan Summary
🔴 Immediate Actions (This Week)
- ✓ Review Azure Advisor recommendations
- ✓ Identify VMs for Reserved Instances
- ✓ Enable storage lifecycle policies
🟡 Short-term Actions (This Month)
- ✓ Purchase 1-year Reserved Instances
- ✓ Right-size underutilized VMs
- ✓ Set up dev/test auto-shutdown
🟢 Long-term Actions (This Quarter)
- ✓ Evaluate ExpressRoute sizing
- ✓ Consolidate Application Gateways
- ✓ Implement cost allocation tags
💰 Total Potential Annual Savings
Implementing all recommendations could reduce your annual Azure spend by approximately 19%
Equivalent to $20,000/month in savings
* Cost saving recommendations, assumptions, and estimates are subject to change and depend on further assessment of the environment.