Azure Cost Optimization Checklist (2026)
A fast, practical checklist for FinOps and platform teams that want measurable Azure savings without slowing delivery.
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Use this checklist to run a focused Azure cost pass. It aligns with common guidance from Azure Well-Architected cost optimization and Cost Management best practices, while keeping execution simple for busy teams.
1) Compute rightsizing and shutdown hygiene
- Identify VMs with consistently low CPU and memory utilization over a 14-30 day window.
- Downsize oversized VM families where performance headroom remains acceptable.
- Automate stop/start schedules for non-production environments.
- Review AKS node pools and remove stale or overprovisioned capacity.
2) Commitment strategy (Reservations and Savings Plans)
- Measure reservation coverage for stable baseline workloads.
- Evaluate 1-year vs 3-year commitments against roadmap confidence.
- Use Savings Plan recommendations for variable compute demand patterns.
- Revisit commitment mix monthly to avoid underutilized commitments.
3) Storage and data lifecycle
- Move infrequently accessed Blob data to Cool or Archive tiers.
- Delete orphaned managed disks, snapshots, and stale backups.
- Apply retention and lifecycle policies for logs and temporary data.
- Review premium disk usage and downgrade where IOPS is underused.
4) Networking and egress controls
- Audit top egress contributors by workload, region, and service.
- Use CDN and edge caching for static/global traffic when it lowers origin transfer costs.
- Minimize unnecessary cross-region traffic and repeated data movement.
- Track NAT and gateway-heavy architectures for avoidable transfer charges.
5) FinOps governance and accountability
- Enforce required cost tags and align chargeback/showback reporting.
- Set budgets and anomaly alerts in Azure Cost Management.
- Use policy guardrails to prevent high-cost misconfigurations in production.
- Review unit economics (cost per customer/workload) every month.
Need workload-specific optimization? See our AVD cost optimization checklist and FinOps audit guide.
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