Configure Cloud Cost Management for Microsoft Azure

  • Release version: Yokohama
  • Updated January 30, 2025
  • 4 minutes to read
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    Summary of Configure Cloud Cost Management for Microsoft Azure

    The Cloud Cost Management application for Microsoft Azure, available on the ServiceNow Store, enables you to monitor, analyze, and optimize your Azure cloud spending directly within ServiceNow. This application requires sysadmin role and Microsoft Azure console administrator permissions. It is designed for desktop use and may show slight billing value differences due to currency conversion or rounding.

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    Key Setup Steps

    • Get and activate the app: Obtain the Cloud Cost Management app and all supporting plugins from the ServiceNow Store, activating required plugins with assistance from your ServiceNow representative if needed.
    • Assign roles: Assign Cloud Cost Management roles to users and groups according to their responsibilities to control access and actions within the app.
    • Configure MID Servers: Set up MID Servers with Service Principal credentials to enable Discovery to communicate with your Azure account and access Configuration Item (CI) data.
    • Discover cloud resources: Use the Discovery application to schedule resource discovery, keeping your CMDB data current. This step is optional and visible only if Discovery is used.
    • Schedule billing data downloads: Configure Billing Download Jobs to regularly retrieve and store Azure billing and usage data to enable cost analysis and reporting.
    • Schedule price sheet downloads: Set up Price Sheet Download Jobs to obtain and maintain price sheet data, which supports cost optimization features like Rightsizing and Unused Resources.
    • Configure insights features: Enable and schedule jobs for:
      • Rightsizing: Analyzes resource usage to recommend resizing over-provisioned or underused resources with confidence ratings and savings estimates.
      • Unused Machines: Identifies idle resources that can be powered off or terminated to reduce costs.
      • Business Hours: Applies policies to automatically start and stop resources according to business schedules to minimize unnecessary runtime costs.
      • Unassigned Resources: Detects resources not assigned to change groups, helping you assign them correctly for better governance throughout lifecycle stages.

    Benefits for ServiceNow Customers

    This configuration process equips you to proactively manage and optimize your Azure cloud expenses by providing automated discovery, billing data integration, and actionable insights such as rightsizing and identifying unused resources. By leveraging these features, you can reduce waste, enforce governance, and align cloud resource usage with business schedules, ultimately driving cost savings and more efficient cloud operations within your ServiceNow environment.

    The Cloud Cost Management application is available on the ServiceNow Store.

    General requirements and limitations

    • Cloud Cost Management isn't supported on mobile devices.
    • Values in reports might vary slightly from provider billing values due to currency conversion or rounding.

    Requirements and limitations for Microsoft Azure

    You must have Microsoft Azure console administrator permissions to work in the Microsoft Azure console

    Download and activate Cloud Cost Management

    Role required: sys_admin.

    Step Description Do this
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    Get the app.

    Get the Cloud Cost Management app from the ServiceNow Store.

    Visit the ServiceNow Store website to get the Cloud Cost Management app and supporting apps.

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    Activate all supporting plugins and applications.

    Activate the plugins listed on the ServiceNow Store page for Cloud Cost Management. You might need to request some of the plugins from your ServiceNow representative.

    For instructions, see:

    Overview: Setting up Cloud Cost Management

    Here's an overview of your set up process. Detailed instructions appear in the table that follows.

    Setup process for the Cloud Cost Management app

    When you first open the app, the home page enables you set up a provider and to assign the insights_owner role.

    Initial home page of the Cloud Cost Management app

    After you set up a provider and assign the insights_owner role, the page displays additional setup activities.

    Note:
    The Configure and Run Discovery card appears only if you use the Discovery application to discover cloud resources.

    Home page after you set up a provider and assign insights_owner

    • When you select the Set up and Run Discovery button in the Configure and Run Discovery section, the Discover Schedules form opens.
    • When you select the Set up Billing Download button in the Download Billing and Usage Data section, the Billing Download Jobs form opens.
    • When you select the Set up Price Sheet Download button in the Download Price Sheets section, the Price Sheets Download Jobs form opens.

    After you finish all configuration, the page will show overview data and give quick access to reports.

    Setting up Cloud Cost Management

    Step Description Do this
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    Assign roles to Cloud Cost Management users and groups.

    You assign Cloud Cost Management roles to user groups and to individual users based on user activities and responsibilities.

    Cloud Cost Management roles
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    Configuring MID Servers to access CI data on provider accounts for Cloud Cost Management .

    To enable Discovery to communicate with your Microsoft Azure account, you specify your Service Principal credentials while configuring the MID Servers that communicate with your Microsoft Azure account.

    Configuring access to CI data on your Microsoft Azure account
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    Discover your cloud resources.

    Note:
    The Configure and Run Discovery card appears only if you use the Discovery application to discover cloud resources.
    When you select the Set up and Run Discovery button on the Configure and Run Discovery card, the Discover Schedules form opens. You schedule the Discovery process to ensure that the CMDB data on resources remains current.
    Discovering your cloud resources for use
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    Schedule and manage the jobs that download billing data for Cloud Cost Management

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    When you select the Set up Billing Download button in the Download Billing and Usage Data section, the Billing Download Jobs form opens. Billing Download jobs download, organize, and store billing data for your payer account on the schedule that you specify. The system analyzes the data to generate reports and to make recommendations for changes in your cloud operations that can lead to cost savings.

    Set up access to Microsoft Azure billing and usage data
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    Schedule and manage the Cloud Cost Management jobs that download price sheets

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    When you select the Set up Price Sheets Download button in the Download Price Sheets section, the Price Sheets Download Jobs form opens. A Price Sheet Download job downloads and stores price sheet data. The Rightsizing and Unused resources processes use price sheet data when generating recommendations.

    Schedule and manage the Cloud Cost Management jobs that download Microsoft Azure price sheets
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    Configure the insights features:

    • Rightsizing
    • Unused Machines
    • Business Hours
    • Unassigned Resources
    • The Rightsizing feature analyzes resource usage to recommend better sizes for resources that are wasting money by being over-provisioned or underused. A confidence rating and predicted savings support each recommendation. You schedule Rightsizing jobs to resize the resources you specify.
    • The Unused Machines feature analyzes usage data to identify resources that are wasting money because they are not used. You schedule Unused Machines jobs to power-off or terminate the resources that you specify.
    • A Business Hours job applies policies to identify resources that are running when they should be powered off, reports them, and can start and stop them on a schedule that you specify. Running only during specified business hours can significantly reduce your cloud spend.
    • Unassigned Resources policies help you to identify the resources that are not associated with a change group and to assign them appropriately. When a resource is assigned to the correct group, the resource can be appropriately governed even as it goes through stages such as patching, upgrading, and reconfiguring.