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Microsoftโ€™s fully managed Kubernetes service offers powerful tools to deploy, manage, and run containerized applications effectively. However, without proper cost control, it can quickly lead to unplanned and avoidable expenses.

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Source: Microsoft Azure

How AKS Pricing Works

Understanding AKS pricing is the primary step to optimizing AKS costs. Several factors determine AKS cost:

  • Node Costs: AKS nodes run on Azure virtual machines (VMs), and their pricing depends on the type and size you select.
  • Storage: Persistent storage, such as Azure Disks, incurs separate costs.
  • Networking: Outbound data transfer and load balancers contribute to your overall bill.
  • Add-ons and Features: Services like Azure Monitor and the AKS Cost Analysis add-on are charged based on usage.

Understanding each component is essential to create an effective cost-optimization strategy. Azure also offers several cost-saving pricing options to lower your AKS costs, which includes:

  • AKS Free Tier: AKS provides a $200 Azure credit for each new user. This is useful for exploring the platform and running non-productive workloads.
  • Pay-as-you-go: This is a flexible pricing model that charges you based on your resource consumption. There is no upfront payment and you can easily adjust to the varying workloads in this model.
  • Reserved Instances: Reserved Instances offer a discount of up to 72% compared to on-demand instances. To use reserved instances you need to commit to specific resource usage for a 1 to 3-year term. These are suitable for running consistent workloads for the long term.
  • Spot Instances: Spot instance offers a maximum discount of 90% compared to the on-demand instances. Here, you need to commit to a specific amount of usage for a 1 to 3-year term, similar to reserved instances. These are ideal for running non-critical workloads that can tolerate interruptions.

Each pricing models cater to different use cases. Hence, you should be careful in choosing your pricing option, based on your workload demands.

Cost Optimization Strategies for Azure Kubernetes Service

Producytion workloads often face challenges in balancing performance and budgets constrains. Implementing the right cost optimization strategies is essential to reduce unnecessary expenses in your cloud environment. This section will explore the most effective AKS cost optimization strategies to manage your Azure Kubernetes cost:

Dynamic Rightsizing and Autoscaling

Dynamic rightsizing and autoscaling helps to adjust resources based on your workload demands.

  • The Cluster Autoscaler adds or removes nodes in your AKS cluster depending on resource usage, preventing over-provisioning.
  • The Horizontal Pod Autoscaler (HPA) scales the number of pods based on metrics like CPU or memory usage, making it ideal for workloads with fluctuating demand.
AKS cost optimization
Source: Microsoft Learn
  • Similarly, the Vertical Pod Autoscaler (VPA) dynamically adjusts the resource requests for individual pods, optimizing their performance and cost.

By using these tools, you can avoid paying for unused capacity while maintaining the necessary resources for your workload.

Use the Right VM Type

Choosing the right VM type is one of the most effective ways to optimize AKS costs. Different workloads have unique requirements, and selecting VMs customized to these needs can significantly reduce your expenses. For example,

  • Spot VMs are perfect for non-critical tasks, offering deep discounts by using Azure’s unused capacity.
  • Burstable VMs work well for workloads that only need high CPU power occasionally, helping you avoid paying for constant performance.
  • Arm-based VMs provide a low-cost option for scalable applications.

Utilize Azure Discounts

Cutting costs on AKS can be simple with the right savings programs. Azure offers various discounts such as Azure Reserved Instances and Savings Plans to reduce your expenses. The Azure Hybrid Benefit is a program that allows you to reuse existing Windows Server or SQL Server licenses on Azure, helping to save on licensing fees. These discounts are especially useful for production environments with consistent demand, making them a smart choice for managing your cloud budget.

Optimize Storage Solutions

Managing storage costs on Azure is essential for keeping your budget in check. For less critical workloads, opt for Standard HDD or SSD to save on expenses. Reserve Premium SSDs for workloads that need high input/output operations per second (IOPS). To cut costs further, archive old or rarely accessed data using Azure Blob Storage tiers like Cool or Archive. These strategies can help you optimize storage without compromising performance where it matters most.

Enable Node Pool Optimization

Optimizing your AKS node pools is key to balancing performance and cost. Use separate node pools for different types of workloads to get the best results. Assign critical workloads to higher-performance node pools, ensuring they have the resources needed. For less critical or batch workloads, choose lower-cost options like Spot VMs or Arm-based VMs. This approach helps you maximize efficiency without overspending.

Schedule Non-Critical Workloads

Reducing cloud costs often comes down to smart scheduling. By planning when and how workloads run, you can trim expenses without sacrificing functionality.

For non-critical tasks, Kubernetes CronJobs is a great tool. They let you schedule workloads during off-peak hours when resources, like Spot VMs, tend to be cheaper. Another effective strategy is stopping workloads during non-business hours, freeing up resources, and cutting unnecessary costs. With these simple adjustments, you can keep your operations lean and efficient.

Use the AKS Cost Analysis add-on

Having detailed insights into your AKS costs makes a big difference in cost management. With the right tools, you can find hidden costs and take control of your AKS budget. The AKS Cost Insights Add-on is a powerful tool for tracking and analyzing your clusterโ€™s expenses. It breaks down costs by namespace, deployment, and pod, giving you a clear view of where your money goes. You can identify the most expensive workloads or teams and spot areas where you can cut spending.

By simplifying cost analysis, this add-on turns complex data into actionable insights, making cost management easier than ever.

Choose the right Azure Pricing Tier

Choosing the right pricing tier is essential for controlling cloud expenses while meeting your workload demands. Azure offers flexible options to fit different use cases and budgets.

The Basic Tier is ideal for small-scale, non-critical workloads, providing cost-effective resources without unnecessary extras. For production workloads that need a balance of cost and performance, the Standard Tier is a better choice. Matching your workload requirements to the right tier ensures you avoid overpaying while still getting the performance you need.

Utilize AKS Automatic

Automation is a powerful tool for reducing costs and improving efficiency in your AKS environment. By automating key processes, you can save time and money while maintaining optimal performance.

You can set up scheduled scaling to automatically adjust cluster sizes during peak or off-peak demand, ensuring resources match usage without overprovisioning. Additionally, automating the cleanup of unused nodes, Persistent Volume Claims (PVCs), or images in the Azure Container Registry (ACR) helps eliminate unnecessary resources that can drive up costs. This automation reduces manual tasks, increases efficiency, and keeps your cloud environment lean and cost-effective.

Monitoring and FinOps Practices

Effective cost management relies on strong monitoring and FinOps practices to keep spending in check. By regularly tracking and controlling cloud expenses, you can avoid unexpected charges and ensure your resources are used wisely.

Start by using Azure Cost Management to monitor your expenses and set clear budgets. Regularly review spending trends to identify areas for improvement and adjust configurations as needed. Encouraging financial accountability within your DevOps teams helps keep everyone focused on cost-efficient practices, ensuring long-term sustainability and savings.

How to Simplify AKS Cost Optimization with Economize

Using Economize can greatly enhance cloud cost management by providing features and capabilities that go beyond what cloud providers offer. By connecting your cloud accounts in just a few minutes, you gain instant access to clear cost insights and visualizations.

Economize Cloud Cost Optimization, AKS cost optimization
Source: Microsoft Learn
  • Economize monitors your cloud costs around the clock, sending real-time alerts for any unexpected spikes, so you can take action before your expenses get out of hand.
  • With Economize, you get a full view of your cloud costs, broken down by services, resources, or labels, making it easy to spot areas for savings.
  • The platform also gives custom recommendations to help you optimize your resources and reduce unnecessary spending.
  • Economizeโ€™s root-cause analysis feature helps you understand why costs are rising and offers suggestions for fixing them.
  • With Economize’s daily cloud audits and continuous tracking, you can keep improving your cloud setup for better savings.

The easy setup, real-time monitoring, and seamless integration make Economize the perfect tool for AKS cost optimization.

Conclusion

AKS cost optimization is essential for running Kubernetes workloads efficiently while staying within budget. By understanding how AKS pricing works and implementing the strategies outlined above such as dynamic scaling, optimizing storage, and leveraging Azure discounts you can significantly lower your Kubernetes spend. Tools like Economize further simplify the process, ensuring ongoing cost efficiency and scalability for your AKS environment.

Struggling with your Monthly Cloud Expenditure?

Managing your cloud costs doesn’t need to be overwhelming. At Economize, we help you reduce your cloud expenses by as much as 30%. Book a free demo today and take the first step toward better control of your cloud budget. See the impact on your spending immediately

Heera Ravindran

Content Marketer at Economize. An avid writer and a zealous reader who specializes in technical content and has a passion for all things Cloud and FinOps.