The current cost is retrieved from Azure Advisor as part of the recommendation as a current monthly cost and we multiply it by 12 on Umbrella side. Retive recommendation that are open for 14 days (subject to the preferences).

• The recommendation is driven from Azure advisor, Umbrella does not generate recommendations on a resource unless it was triggered from Azure advisor

• Umbrella is using the following data sources to determine the actual savings and VM utilization:

  1. Azure recommendation information collected from Azure Advisor according to the preferences.

  2. Azure resource information collected from Azure management.

  3. Azure statistical metrics on the resource.

  4. Cost and usage information from Umbrella billing information.

  5. Azure pricing information.

• Savings & Cost Calculations:

  • Current Cost:
    • In an MCA/CSP Export Amortize account type the potential savings and current cost are calculated based on the Effective Cost (RI price).
    • In an MCA/CSP Export Unblended account type the potential savings and current cost are calculated based on the List Price (on demand).
    • In an EA API account type the potential savings and current cost are calculated based on the list Price (on demand).
  • Total cost recommended: The saving is calculated as follows:

    1. In case the recommended target model has reservations, the savings calculation takes into account the target reservation rate and the current model usage (with demand/reservation ratio) for the overall calculation.

  2. Currency exchange rate corresponding to the invoice date.

     • Potential Savings: Current Cost - Total cost recommended

     • New Annual Cost: (Current Cost-Potential Savings)*12

  • Umbrella is filtering original Azure recommendations in the following use cases:

    1. VM has less than 7 active days in the last month or not present in Umbrella billing information

    2. VM actual cost is lower than expected cost of the recommended VM - this can be caused by special rates or low usage during the month

    3. Potential saving is less than 1%

    4. Target machine pricing is unknown

    5. CPU Percentile 95 threshold as configured in Azure Advisor

1. Num of days, default 14 days

Native + Umbrella validation (Detailed validation logic).

Identifying VM instances with low CPU. For example when the daily average CPU is less than 1% and network traffic in/out is lower than 10MB.

• Check if the VM is not in a deallocating state.

  • Collect metrics (CPU and network usage) for the specified period.
  • If the VM is idle, calculate the current cost.
  • Trigger recommendation if the VM is idle and has a cost greater than $0.01.

  A VM is considered idle if it meets these conditions:

  • CPU utilization is less than or equal to 3% (sup (BENCHMARK_CPU_UTIL). (subject to preferences)
  • Network traffic (both in and out) is less than 10 MB (BENCHMARK_NETWORK). (subject to preferences)
  • These metrics are checked over a 14-day period (DAYS_TO_CHECK). (subject to preferences)

1. Days to check, default 14 days.
2. Max Network Traffic, default 10 MB.
3. CPU Utilization, default 3%.

Umbrella.

Identify VMs that are stopped or stopped deallocated for at least 7 days (subject to preferences) but still carry additional charges.

Checks if the VM is either "stopped" or "deallocated" least 7 days (subject to preferences), the state is presented in the "Power State" column.

Cost Analysis - calculates current costs by considering:

• Attached volumes (both OS disk and data disks).
• Public IP addresses associated with the VM.
• Only trigger recommendation if total cost > minimum pointial saving threshold.

1. Least Stopped Days, default 7 days.

Umbrella.

RI purchase recommendations are based on customer historical usage. These recommendations are calculated by analyzing all incurred usage eligible to be covered by an RI (e.g. On-Demand usage) and using our unique algorithms to simulate possible combinations of RI’s that would cover that usage

• The current cost is retrieved from Azure as part of the recommendation as a current monthly cost and multiplied by 12 on Umbrella side.

  • Umbrella polled both 1/3 year recommendation plans from Azure and present them as alternative where the recommended plan is presented according to the recommendation preferences.
  • If the available recommendation from Azure differs from the plan defined in your preferences, we will still present it as a single recommended option.

  (Detailed validation logic)

• Days To Check, default 30 days.
  • Preferred Plan, default 1-Year.

Native + Umbrella validation

Recommendation to commit to a certain Savings plan, based on daily hourly usage being above the stated

• 30-day period for usage analysis.
  • Default recommendation: 1-year terms.
  • Recommendations are generated with a Single scope at the subscription level. Shared scopes are excluded, since they represent aggregated shared quantities across the entire payer account rather than per connected subscription.

Recommendation Completion Logic:

Umbrella verifies whether new resources with Purchase Option = Savings Plans were created within the relevant subscriptions. If detected, the recommendation is automatically marked as completed.

1. Days to check
2. Term

Native + Umbrella validation