Do you proactively notify about expected spikes in Azure Resource costs?

Always inform stakeholders in advance if you anticipate a significant increase in Azure resource costs. This proactive communication is crucial for budget planning and avoiding unexpected expenses.

Why This Matters

Budget Management: Sudden spikes in costs can disrupt budget allocations and financial planning.
Transparency: Keeping stakeholders informed fosters trust and transparency in operations.
Planning: Advance notice allows for better resource allocation and potential cost optimization strategies.

How to Implement

Communicate Early: As soon as a potential cost increase is identified, communicate this to relevant stakeholders.
Provide Details: Include information about the cause of the spike, expected duration, and any steps being taken to mitigate costs.

Scenarios

A team needs to perform a bulk update on millions of records in an Azure Cosmos DB instance, a task that requires scaling up the throughput units substantially. They proceed without notifying anyone, assuming the cost would be minimal as usual. However, the intensive usage for a week leads to an unexpectedly high bill, causing budgetary concerns and dissatisfaction among stakeholders.

Figure: Bad example - Nobody likes a surprise bill

Before running a large-scale data migration on Azure SQL Database, which is expected to significantly increase DTU (Database Transaction Unit) consumption for a week, the team calculates the expected cost increase. They inform the finance and management teams, providing a detailed report on the reasons for the spike, the benefits of the migration, and potential cost-saving measures.

Then send an email (as per the template below)

Figure: Informing and emailing stakeholders before a spike makes everyone happy

Email template


To:	{{ SpendMaster (aka SysAdmins) }}
Subject:	{{ PROJECT NAME }} - Cost spike due to data migration

Hi {{ SpendMaster aka SysAdmins }}

I need to perform {{ TASK }} on {{ PROJECT NAME }}. I know that this will cost more than our usual amount for Azure. I expect the process to run for {{ X }} days.

I have calculated this cost to be {{ $$ }}.

Please approve

Remember, effective communication about cost management is key to maintaining a healthy and transparent relationship with all stakeholders involved in your Azure projects.