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Cloud Efficiency Hub

Suboptimal Architecture Selection for Azure Virtual Machines

The short version

Azure offers x86-64 VMs (Intel and AMD) and Arm64 VMs (Ampere Altra and Azure Cobalt 100), but default provisioning often leans toward Intel-based SKUs due to inertia or pre-configured templates.

Jurian van Hoorn

Operations Senior (Azure Cloud) @ Netcompany

Category
Compute
Reference
CER-0104
Type
Suboptimal Pricing Model

Explanation

Why the waste happens and who it affects.

AMD and ARM alternatives offer lower list prices; ARM-based sizes usually have a lower hourly list price than comparable Intel-based sizes (for example, D2ps_v5 versus D2s_v5 on Linux pay-as-you-go in East US) and can deliver better price-performance for compatible workloads. These price differences accumulate quickly at scale.

ARM-based VMs in Azure (e.g., Dpsv6 and Epsv6 on Azure Cobalt 100, or the previous-generation Dpsv5 and Epsv5 on Ampere Altra) are suited for many common workloads, such as microservices, web applications, and containerized environments. However, not all applications are architecture-compatible, especially those with dependencies on x86-specific libraries or instruction sets. Organizations that skip architecture evaluation during provisioning miss out on cost-efficient options.

Billing model

The pricing dimensions that drive this cost.

Azure VMs are billed based on the underlying hardware architecture, instance size, and region. ARM-based VMs, identified by a "p" in the SKU name (e.g., D4ps_v5), offer significantly lower pricing than comparable x86-based instances. AMD-based SKUs (e.g., E4as_v5) are typically priced lower than Intel-based equivalents. However, Azure does not automatically guide architecture selection, so users often default to Intel SKUs out of habit or compatibility assumptions. This can lead to missed savings if workloads are architecture-flexible.

How to detect

1 check to find it in your estate.

  • Run Azure Resource Graph queries to inventory current VM SKUs by architecture

How to fix

4 ways to remove the waste.

  • Assess workload compatibility with ARM or AMD architectures
  • Propose migration to ARM-based SKUs for supported workloads to reduce compute costs
  • Use AMD-based instances as an intermediate option when ARM compatibility is not feasible
  • Incorporate architecture evaluation into provisioning workflows and cost governance reviews

Documentation

Vendor references for pricing and configuration.