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The next topic is cost, and this is one of the most important topics when discussing cloud, because

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almost everything in the cloud costs money.

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So whenever you create a new resource, assume you are going to pay for it.

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There are some exceptions, for example, resource groups that we discussed before which are absolutely

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free.

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And there are also some additional resources that are free.

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But in general, everything costs money.

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Now there are a few pricing models in the cloud.

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There is a pricing model in which you pay per resource.

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For example, if you create a new virtual machine, you pay for this virtual machine.

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Another pricing model is power consumption.

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That means that you are not paying for the resource itself.

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For example, function up, which will discuss, of course, later, and for which you are not paying

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for the creation of the function of what we do pay is for using the function up.

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So whenever we make a call to the function up, we pay a very small amount.

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Another pricing model is reservation.

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With a reservation we can pay upfront for the resource with a commitment of using it for a certain amount

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of time.

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For example, we may commit to use a virtual machine for three years and for that case we pay upfront

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for three years and get a hefty discount on the price.

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Now, the rule of thumb here is quite simple.

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Always check the resources cost before provisioning.

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So before creating a new resource, always check how much you are going to pay for it.

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And if it's too expensive, then always check for more cost effective alternatives.

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For example, when possible and available, look for reservations.

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Some resource types allow reservations, which, as we said before, is an upfront payment with discount.

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And if that might fit your needs, then definitely use it.

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Now, the prime way of figuring out how much a service is going to cost you is using the actual calculator.

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And this is a link to the calculator.

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And let's take a look at it.

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So click this link and let's go through the calculator together.

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So here is the actual pricing calculator.

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And what we see here is basically the list of categories of services with a feature that services or

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the most popular services displayed here.

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And we can simply click the resource we're interested in, fill in some parameters and decide the cost.

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So let's begin with virtual machines.

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So let's click this.

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And now the actual pricing calculator will add it at the bottom of the page, so you click The View

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and here we are in the virtual machine section of the actual pricing calculator.

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Now we need to fill in what exactly we are looking for individual machines.

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So first, let's set the region.

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As we said before, Ridgen can affect the pricing.

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So in my case, I'll go for West Europe, which is a region I will use across this course.

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You, of course, are free to use whatever region you want, preferably one that is close to you.

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So after selecting the region, we will go for the operating system and will select the correct operating

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system for us.

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I will leave it with windows.

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The type is always only.

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I do not want any preinstalled software on this Vitol machine.

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I will also stay with the standard tier and then I need to select the specific instance type of the

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virtual machine.

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So the default here is an instance called detA V three, which offers me to use and eight gigabytes

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of memory with 50 gigabyte temporary storage.

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So just for example, let's leave it this way.

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Now, I also can select how many hours this virtual machine will be operating in a month now in Asia,

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the default number of hours per month is seven hundred and thirty.

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So, again, because I want to get a monthly estimation, I will leave it as is.

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And now let's look at the actual cost.

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So what I see here is for this virtual machine in this region with this operating system and of this

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instance type, I'm going to pay one hundred fifty four point seventy six dollars per month.

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Now, there are additional five cents here because as you assumes, I'm going to use storage account

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quite extensively now because the cost of it is quite low.

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I will leave it as is.

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So this is the final price I probably going to pay for this machine.

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But remember, we talked about reservations, so here I can select my salvation.

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And if I decide that reservation is good for me, then I can opt for the three use reservation and now

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I can see that the price went down substantially and instead of 154 dollars per month, I now I'm looking

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at one hundred and five dollar point sixty three cents per month.

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Now, if I decide that I don't really need the Windows operating system and I can do with Linux, then

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the price will go down even more and even more substantially.

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And now for the very same machine on the very same region, I am going to pay only thirty eight point

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forty seven dollars per month, which is extremely low compared to the original price that we looked

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at.

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So as you can see, there are many factors that affect the price and you should always choose the most

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cost effective one.

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So if, for example, you don't really need the Windows operating system and Linux will do, then go

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for it.

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If you can use a smaller instance and for example, you don't really need the eight gigabyte of memory

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and you can do with less than that, then do that.

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And of course, if you can also can commit to three years reservation, then again do that, it will

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save you a lot of money.

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Now, let's look at another example.

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So that was virtual machine.

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And now let's look at as you cycle again.

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We will go in-depth with Analytical later.

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I just want to show the calculation of the price of it.

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So, again, let's pick the region.

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I will go for West Europe, as usual.

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Here I will pick a single database with regard to the back storage deal.

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I will leave it, as is all the rest.

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I will leave again as is.

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And as you can see, the price here is quite high.

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So here we are looking at one thousand five hundred sixty one dollars per month, which is a lot.

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Now, one way to bring down the price is to pick a smaller instance.

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It a different instance of actual sequel is eight vehicles.

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Let's say I can do with two vehicles.

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So we see a substantial decrease in the price.

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And if also I can go for a reservation, I can see immediately that the price without even more.

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Now, actually, there is even a better way to bring down the price of a sequel.

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So if instead of the British model of vehicle, I will go with you and I will stay with the basic idea

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and find it use, then we are looking here at a ridiculous price of less than five dollars a month.

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So of course, later we will discuss what exactly is it to you versus Vikor purchasing model.

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But you can see that there is a lot of margin here in the pricing of amusical, and that is the same

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also for other resources.

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So that was about the Azrael calculator.

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I highly recommend to always leave it open and before creating new resources in Asia, you'll pay a

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visit to the calculator and make sure you pick the most cost effective option of the resource you are

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going to create.