Does Azure charge for stopped VMs?

If we stop a VM inside OS then it goes into “stopped” state. Azure will charge for the compute (hardware), network and storage services.

We can stop maximum charges for VM by using the stopped (deallocated) state. For this we would need Azure Portal (or Azure CLI) to stop the VM. This will shutdown the Operating System and deallocate the compute resource/network resource allocated for the VM. These compute/network resource can be used for another customer.  In this case Azure will report the status of the VM as being in a “Stopped (Deallocated” state.

Stopping (deallocating) a VM also release the internal IP address. A quick tip to prevent this from happening is to make sure that you have at least one VM that you haven’t put in the Stopped (Deallocated) state. You’d still be charged for that one but not the others, whilst maintaining your virtual IP.

Azure doesn’t charge for the VM core hours in Stopped (deallocated) state. However, it continues to accrue charges for the Azure storage needed for the VM’s OS disk and any attached data disks.

VM Reserved instance

I have configured Azure VM for development environment from an image and running it for the past 3 weeks. Today, Azure advisor recommended that upgrading Pay-As-You-Go to reserved instance will save us 25% yearly that’s estimated 1,031.67 USD.

Here is how you can do that;

Go to Home -> <Your Subscription> -> Buy reserved instances -> Virtual machine

I came here for one year (25%) discount but if commit for three year i can get 48% discounts. Not bad.

The monthly estimated prices for a 3 years commitment is 130.61 USD.

Azure App Service plan

Free plan are good if you don’t care about backup, auto-scaling, staging slots and storage.

As of this writing, these are Azure App service plan;

For less demanding workloads (Dev / Test)

For most production workloads (Production)

Other production tier options are here;

To scale up/down, go to Azure web application and select Scale up (App Service plan). The selected pricing tier will have a blue border around it. Change the lower pricing tier based on your requirements.

Once you have reached to a point where you will need more than 1GB of storage and RAM, then I think S1 production plan might be your starting point. This offers 10GB of storage, and all benefits that free tier does not provide.

The cost of S1 tier is 73.00 USD/Month.