Why is Microsoft Azure so expensive?

There is no single answer to how much Microsoft Azure costs; pricing depends heavily on the specific services used and quantity of resources consumed. Pricing can vary significantly based on the services chosen, usage, and the selected pricing model—refer to their product pricing page for up to date pricing information in your country currency. Please note that the prices mentioned in this article are accurate as of December 1, 2023. Be aware that these prices are subject to change at any time.

Understanding the cost implications of Microsoft Azure is critical for businesses aiming to leverage cloud technology effectively. While Azure’s diverse offerings provide flexibility and power, they also introduce a complex pricing landscape. Here are key factors that contribute to Azure’s costs and nuances that businesses must consider to manage their cloud budgets efficiently:

• Complex pricing structure: Azure offers a wide range of services, each with its own pricing structure. This complexity can lead to unexpected costs, especially if users are not fully aware of the pricing details of each service.

• High data transfer costs: Data transfer costs, especially when data is moved out of Azure to the internet or to other regions, can be significant. This is also the case with other hyperscalar clouds; for instance, prices can balloon with AWS egress costs. These costs can accumulate rapidly, especially for data-intensive applications.

• Scale and performance needs: Higher-tier services for better performance and increased scalability come with higher costs. For businesses requiring high-performance computing, large-scale storage, or extensive data processing capabilities, Azure can be costly.

• Additional features and add-ons: Costs can escalate when additional features or add-ons are used. Services like advanced security, monitoring tools, and support plans add to the overall expenses.

• Licensing costs: For certain software, especially Microsoft’s own like Windows Server or SQL Server, licensing fees can be a significant part of the cost.

• Long-term contracts: While long-term commitments can offer cost savings, they also mean that users are locked into a certain level of spending, regardless of whether their usage decreases.

DigitalOcean stands out as a competitively-priced alternative to Microsoft Azure, attracting small to medium-sized businesses with transparent pricing and low bandwidth costs, which remain consistent across regions. This feature is particularly beneficial for businesses operating on a global scale. Clarity in pricing, coupled with affordability, make DigitalOcean a compelling choice for those seeking a straightforward cloud solution.

Sans Paper, an Australia-based construction software provider, switched from Microsoft Azure to DigitalOcean, simplifying their cloud infrastructure. “The documentation for Azure is not great. You probably need specialized DevOps that knows Azure, how to set it up, and how to maintain that,” says Gim Wee, CTO of Sans Paper. “That’s going to cost the business.”

In the process, they realized significant savings. “There was a definite cost savings and that was a motivator as well. We have seen thirty percent cost savings,” says Marcus van Enk, Founder and CEO of Sans Paper.

DigitalOcean provides simplicity and cost-effectiveness, with several key features:

• Straightforward pricing: DigitalOcean is known for its transparent, predictable pricing model. Users benefit from clear pricing without hidden fees, making budgeting easier. Use the pricing calculator to see your savings.

• Focus on simplicity: The platform is designed for ease of use. Its straightforward interface and streamlined services cater to those who prefer a more direct and less complex cloud computing experience.

• Developer-friendly environment: With tools tailored for developers, DigitalOcean simplifies the deployment and management of applications.

• Comprehensive developer resources: DigitalOcean offers an extensive library of tutorials, documentation, and community forums, valuable for developers seeking guidance and best practices in cloud computing.

• Scalability: DigitalOcean offers scalability for small to medium-sized businesses, with options to upgrade resources as needed.

Sign up for a DigitalOcean account today to get the peace of mind, customer support, and product suite your business needs.