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Azure Files provides two distinct billing models: provisioned and pay-as-you-go. The provisioned model is only available for premium file shares, which are file shares deployed in the FileStorage storage account kind. The pay-as-you-go model is only available for standard file shares, which are file shares deployed in the general purpose version 2 (GPv2) storage account kind. This article explains how both models work in order to help you understand your monthly Azure Files bill.

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What do you need to manage? With Azure Files, the basic unit of management is a storage account. Other solutions may require additional management, such as operating system updates or virtual resource management (VMs, disks, network IP addresses, etc.).

Azure Files supports reservations (also referred to as reserved instances), which enable you to achieve a discount on storage by pre-committing to storage utilization. You should consider purchasing reserved instances for any production workload, or dev/test workloads with consistent footprints. When you purchase a Reservation, you must specify the following dimensions:

There are differences in how Reservations work with Azure file share snapshots for standard and premium file shares. If you're taking snapshots of standard file shares, then the snapshot differentials count against the Reservation and are billed as part of the normal used storage meter. However, if you're taking snapshots of premium file shares, then the snapshots are billed using a separate meter and don't count against the Reservation. For more information, see Snapshots.

When you provision a premium file share, you specify how many GiBs your workload requires. Each GiB that you provision entitles you to more IOPS and throughput on a fixed ratio. In addition to the baseline IOPS for which you are guaranteed, each premium file share supports bursting on a best effort basis. The formulas for IOPS and throughput are as follows:

Effective file share performance is subject to machine network limits, available network bandwidth, IO sizes, and parallelism, among many other factors. To achieve maximum benefit from parallelization, we recommend enabling SMB Multichannel on premium file shares. To learn more see enable SMB Multichannel. Refer to SMB Multichannel performance and performance troubleshooting guide for some common performance issues and workarounds.

If your workload needs the extra performance to meet peak demand, your share can use burst credits to go above the share's baseline IOPS limit to give the share the performance it needs to meet the demand. Bursting is automated and operates based on a credit system. Bursting works on a best effort basis, and the burst limit isn't a guarantee.

Azure Files uses a pay-as-you-go billing model for standard file shares. In a pay-as-you-go billing model, the amount you pay is determined by how much you actually use, rather than based on a provisioned amount. At a high level, you pay a cost for the amount of logical data stored, and then an additional set of transactions based on your usage of that data. A pay-as-you-go model can be cost-efficient, because you don't need to overprovision to account for future growth or performance requirements. You also don't need to deprovision if your workload and data footprint vary over time. On the other hand, a pay-as-you-go model can also be difficult to plan as part of a budgeting process, because the pay-as-you-go billing model is driven by end-user consumption.

If you put an infrequently accessed workload in the transaction optimized tier, you'll pay almost nothing for the few times in a month that you make transactions against your share. However, you'll pay a high amount for the data storage costs. If you moved this same share to the cool tier, you'd still pay almost nothing for the transaction costs, simply because you're infrequently making transactions for this workload. However, the cool tier has a much cheaper data storage price. Selecting the appropriate tier for your use case allows you to considerably reduce your costs.

Similarly, if you put a highly accessed workload in the cool tier, you'll pay a lot more in transaction costs, but less for data storage costs. This can lead to a situation where the increased costs from the transaction prices increase outweigh the savings from the decreased data storage price, leading you to pay more money on cool than you would have on transaction optimized. For some usage levels, it's possible that the hot tier will be the most cost efficient, and the cool tier will be more expensive than transaction optimized.

Your workload and activity level will determine the most cost efficient tier for your standard file share. In practice, the best way to pick the most cost efficient tier involves looking at the actual resource consumption of the share (data stored, write transactions, etc.). For standard file shares, we recommend starting in the transaction optimized tier during the initial migration into Azure Files, and then picking the correct tier based on usage after the migration is complete. Transaction usage during migration is not typically indicative of normal transaction usage.

Regardless of how you migrate existing data into Azure Files, we recommend initially creating the file share in transaction optimized tier due to the large number of transactions incurred during migration. After your migration is complete and you've operated for a few days or weeks with regular usage, you can plug your transaction counts into the pricing calculator to figure out which tier is best suited for your workload.

Azure Files costs for using a value-added service. Azure Files does not directly charge customers costs for adding value-added services, but as part of adding value to the Azure file share, the value-added service might increase the costs that you see on your Azure file share. This is easy to see with standard file shares, because standard file shares have a pay-as-you-go model with transaction charges. If the value-added service does transactions against the file share on your behalf, they will show up in your Azure Files transaction bill even though you didn't directly do those transactions yourself. This applies to premium file shares as well, although it may be less noticeable. Additional transactions against premium file shares from value-added services count against your provisioned IOPS numbers, meaning that value-added services may require provisioning more storage to have enough IOPS or throughput available for your workload.

Capital and operational costs of Windows File Servers with one or more server endpoints. Azure File Sync as a replication solution is agnostic of where the Windows File Servers that are synchronized with Azure Files are; they could be hosted on-premises, in an Azure VM, or even in another cloud. Unless you are using Azure File Sync with a Windows File Server that is hosted in an Azure VM, the capital (i.e. the upfront hardware costs of your solution) and operating (i.e. cost of labor, electricity, etc.) costs will not be part of your Azure bill, but will still be very much a part of your total cost of ownership. You should consider the amount of data you need to cache on-premises, the number of CPUs and amount of memory your Windows File Servers need to host Azure File Sync workloads (see recommended system resources for more information), and other organization-specific costs you might have.

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