Developing Solutions for Microsoft Azure (AZ-204) Practice Exam

Which practice is effective in managing cloud costs?

1. Conducting regular reviews of cloud bills to identify abnormal increases in spend.

2. Allowing all IT teams unrestricted access to provision virtual machines.

3. Consistently provisioning the same capacity for all environments.

4. Provisioning VMs with higher licensing costs than necessary.

The correct answer is: Conducting regular reviews of cloud bills to identify abnormal increases in spend.

Conducting regular reviews of cloud bills to identify abnormal increases in spend is a proactive approach that allows organizations to maintain control over their cloud expenditures. By systematically reviewing cloud bills, organizations can spot unexpected spikes in costs, which may indicate inefficiencies, redundancy, or unauthorized resource usage. This practice not only fosters accountability but also enables teams to take necessary actions to optimize their cloud resources and avoid overspending. In contrast, allowing all IT teams unrestricted access to provision virtual machines can lead to unmonitored resource usage and greater expenses, as teams may provision more resources than necessary without proper oversight. Consistently provisioning the same capacity for all environments does not take into account the varying resource needs across different environments, potentially leading to wasteful spending. Provisioning VMs with higher licensing costs than necessary directly contributes to inflated expenses without providing additional value. Therefore, regularly reviewing cloud billing is a fundamental practice for effective cloud cost management, as it promotes awareness and strategic decision-making concerning resource allocation.