Azure Cost Reporting for Departments

Consolidated Cost Reporting Solution

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You are designing an Azure solution for a company that has four departments. Each department will deploy several Azure app services and Azure SQL databases.

You need to recommend a solution to report the costs for each department to deploy the app services and the databases. The solution must provide a consolidated view for cost reporting.

Solution: Create a new subscription for each department.

Does this meet the goal?

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Explanations

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A. B.

B

Instead, create a resources group for each resource type. Assign tags to each resource

Note: Tags enable you to retrieve related resources from different resource groups. This approach is helpful when you need to organize resources for billing or management.

https://docs.microsoft.com/en-us/azure/azure-resource-manager/resource-group-using-tags

The solution of creating a new subscription for each department does provide a way to track costs for the app services and SQL databases used by each department, but it may not be the most optimal solution.

Creating a new subscription for each department will separate the billing and usage of resources between the departments, allowing for easier tracking of costs for each department. However, it may also lead to increased administrative overhead, as each subscription would need to be managed separately.

Additionally, creating multiple subscriptions may lead to increased costs, as each subscription incurs its own subscription fee. It may also limit the ability to take advantage of volume discounts for certain services, as the usage across multiple subscriptions may not be aggregated.

A more optimal solution may be to use Azure Cost Management and Billing to track costs at the resource group level. By grouping app services and SQL databases into resource groups, costs can be tracked and reported on a per-department basis without the need for separate subscriptions. This can help reduce administrative overhead and potentially reduce costs.

In summary, while creating a new subscription for each department can meet the goal of providing a consolidated view for cost reporting, it may not be the most optimal solution due to increased administrative overhead and potential cost implications. Using Azure Cost Management and Billing at the resource group level may be a more optimal solution.