๐ Azure Infrastructure Cost Model for Customer Workloads
This page presents a simplified, leadership-facing view of the annual infrastructure costs required to support a small customer environment using a resilient Active/Passive (4-VM) architecture. All estimates reflect updated decisions for storage architecture, most notably the replacement of one Premium ZRS disk with Azure NetApp Files Premium , aligning with performance and scalability objectives.
๐ฏ Executive Summary
-
Architecture : 4 virtual machines configured in Active/Passive mode for availability.
-
Optimization : One managed disk replaced with Azure NetApp Files Premium to improve NFS/SMB performance, enable tiering, and align with strategic storage planning.
-
Reservation Commitments : Applied where available to reduce annual costs (~30โ38% savings).
-
Geographic Flexibility : Supports consistent pricing across East US, West US, UK South, and UAE regions.
-
Total Estimated Annual Cost (with buffer): $18,600.91
๐งพ Updated Annual Cost โ 4 VMs (Active/Passive) with NetApp Files
โ๏ธ Core Infrastructure
| Component | Quantity | Annual Cost (USD) | Notes |
|---|---|---|---|
| VMs (Standard_D2s_v3, RI) | 4 | $2,016.00 | Reserved Instance for high utilization |
| Premium ZRS Disks (P10) | 2 | $595.44 | Redundant disks (one removed in favor of NetApp) |
| Azure NetApp Files (1 TB) | 1 TB | $2,457.60 | High-performance NFS/SMB, replacing 1 disk |
| Storage Accounts (GPv2) | 9 | $2,700.00 | PAYG pricing, typical blob/file usage |
| Private Endpoints | 8 | $672.00 | Secure resource access |
| Network Interfaces | 10 | $0.00 | No cost |
| Private DNS Zones | 4 | $24.00 | Low operational cost |
| Internal Load Balancers | 3 | $657.00 | Standard SKU for HA networking |
Subtotal โ Core Infrastructure: $9,122.04
๐ Network & Security
| Component | Annual Cost (USD) | Notes |
|---|---|---|
| Azure Firewall (Basic SKU) | $4,523.64 | PAYG, central network protection |
| Standard Public IPs (x4) | $175.20 | Allocated to Firewall and VPN |
| VPN Gateway (VpnGw2) | $2,447.04 | Enterprise-grade, zone-resilient |
| IPsec Tunnel + VPN Egress | $642.00 | 1 S2S Tunnel + 500 GB/month outbound bandwidth |
Subtotal โ Network & Security: $7,787.88
๐ฐ Total Annual Summary
| Category | Annual Cost (USD) |
|---|---|
| Core Infrastructure | $9,122.04 |
| Network & Security | $7,787.88 |
| Total (Base) | $16,909.92 |
| +10% Contingency | $18,600.91 |
๐ธ Reservation Optimization
Savings applied to long-term, stable workloads to reduce operational spend:
| Component | PAYG Annual | RI Discount | New Annual Cost |
|---|---|---|---|
| VMs (4 ร Std_D2s_v3) | $2,016.00 | โ 1-yr RI | $2,016.00 |
| Azure NetApp Files | $2,457.60 | โ ~38% RI | ~$1,522.00 |
| Azure Firewall (Basic) | $4,523.64 | โ ~30% RI | ~$3,166.55 |
| VPN Gateway (VpnGw2) | $2,447.04 | โ ~30% RI | ~$1,712.93 |
Updated Cost with Reservations:
| Category | Annual Cost (USD) | RI Status |
|---|---|---|
| Core Infrastructure | $7,186.44 | โ VMs, โ NetApp, โ Disks, โ Load Balancers |
| Network & Security | $5,696.68 | โ Firewall, โ VPN, โ Bandwidth/IPs |
| Grand Total | $12,883.12 | |
| +10% Contingency | $14,171.43 |
โ๏ธ Storage Architecture Justification
| Option | Annual Cost | Pros |
|---|---|---|
| 3 ร Premium ZRS Disks | $893.16 | Low-cost, basic performance, limited scaling |
| 2 ร ZRS + NetApp Files | $3,053.04 | Enterprise storage performance, NFS/SMB, better scalability |
Strategic rationale : Though NetApp is more costly, it enhances long-term flexibility, supports hybrid workloads, and aligns with storage modernisation goals.
๐ Regional Cost Comparison
| Region | Total Cost (3-VM) | Total Cost (4-VM + NetApp) | ฮ Increase |
|---|---|---|---|
| East US | $8,617.04 | $9,121.04 | +$504.00 |
| UK South | $8,725.04 | $9,265.04 | +$540.00 |
| UAE North | $8,905.04 | $9,605.04 | +$700.00 |
Consistent pricing observed across regions with expected uplift for resilience and storage capacity.
๐ Conclusion
This infrastructure model is:
-
Resilient : Active/passive VM configuration with load balancing and secure endpoints.
-
Optimized : Reservations applied wherever possible.
-
Modernized : Adoption of Azure NetApp Files increases performance and aligns with cloud-native best practices.