Plan to manage costs for Azure Data Factory - Azure Data Factory (2023)

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This article describes how you plan for and manage costs for Azure Data Factory.

First, at the beginning of the ETL project, you use a combination of the Azure pricing and per-pipeline consumption and pricing calculators to help plan for Azure Data Factory costs before you add any resources for the service to estimate costs. Next, as you add Azure resources, review the estimated costs. After you've started using Azure Data Factory resources, use Cost Management features to set budgets and monitor costs. You can also review forecasted costs and identify spending trends to identify areas where you might want to act. Costs for Azure Data Factory are only a portion of the monthly costs in your Azure bill. Note that this article only explains how to plan for and manage costs for data factory. You're billed for all Azure services and resources used in your Azure subscription, including the third-party services.


Cost analysis in Cost Management supports most Azure account types, but not all of them. To view the full list of supported account types, see Understand Cost Management data. To view cost data, you need at least read access for an Azure account. For information about assigning access to Azure Cost Management data, see Assign access to data.

Estimate costs before using Azure Data Factory

Use the ADF pricing calculator to get an estimate of the cost of running your ETL workload in Azure Data Factory. To use the calculator, you have to input details such as number of activity runs, number of data integration unit hours, type of compute used for Data Flow, core count, instance count, execution duration, and etc.

One of the commonly asked questions for the pricing calculator is what values should be used as inputs. During the proof-of-concept phase, you can conduct trial runs using sample datasets to understand the consumption for various ADF meters. Then based on the consumption for the sample dataset, you can project out the consumption for the full dataset and operational schedule.


The prices used in this example below are hypothetical and are not intended to imply actual pricing.

For example, let’s say you need to move 1 TB of data daily from AWS S3 to Azure Data Lake Gen2. You can perform POC of moving 100 GB of data to measure the data ingestion throughput and understand the corresponding billing consumption.

Here's a sample copy activity run detail (your actual mileage will vary based on the shape of your specific dataset, network speeds, egress limits on S3 account, ingress limits on ADLS Gen2, and other factors).

Plan to manage costs for Azure Data Factory - Azure Data Factory (3)

(Video) #112. Azure Data Factory - Pipeline Pricing Info

By using the consumption monitoring at pipeline-run level, you can see the corresponding data movement meter consumption quantities:

Plan to manage costs for Azure Data Factory - Azure Data Factory (4)

Therefore, the total number of DIU-hours it takes to move 1 TB per day for the entire month is:

1.2667 (DIU-hours) * (1 TB / 100 GB) * 30 (days in a month) = 380 DIU-hours

Now you can plug 30 activity runs and 380 DIU-hours into ADF pricing calculator to get an estimate of your monthly bill:

Plan to manage costs for Azure Data Factory - Azure Data Factory (5)

Understand the full billing model for Azure Data Factory

Azure Data Factory runs on Azure infrastructure that accrues costs when you deploy new resources. It's important to understand that other extra infrastructure costs might accrue.

How you're charged for Azure Data Factory

Azure Data Factory is a serverless and elastic data integration service built for cloud scale. There isn't a fixed-size compute that you need to plan for peak load; rather you specify how much resource to allocate on demand per operation, which allows you to design the ETL processes in a much more scalable manner. In addition, ADF is billed on a consumption-based plan, which means you only pay for what you use.

When you create or use Azure Data Factory resources, you might get charged for the following meters:

  • Orchestration Activity Runs - You're charged for it based on the number of activity runs orchestrate.
  • Data Integration Unit (DIU) Hours – For copy activities run on Azure Integration Runtime, you're charged based on number of DIU used and execution duration.
  • vCore Hours – for data flow execution and debugging, you're charged for based on compute type, number of vCores, and execution duration.

At the end of your billing cycle, the charges for each meter are summed. Your bill or invoice shows a section for all Azure Data Factory costs. There's a separate line item for each meter.

Other costs that might accrue with Azure Data Factory

When you create resources for Azure Data Factory (ADF), resources for other Azure services are also created. They include:

  • Pipeline Activity execution
  • External Pipeline Activity execution
  • Creation/editing/retrieving/monitoring of data factory artifacts
  • SSIS Integration Runtime (IR) duration based on instance type and duration


You can assign the same tag to your ADF and other Azure resources, putting them into the same category to view their consolidated billing. ADF tag will be inherited by all SSIS IRs in it. If you change your ADF tag, you need to stop and restart all SSIS IRs in it for them to inherit the new tag, see Reconfigure SSIS IR section.

(Video) How to Calculate Billing or Price for Azure Data Factory Pipeline Execution | ADF Tutorial 2022

Using Azure Prepayment with Azure Data Factory

You can pay for Azure Data Factory charges with your Azure Prepayment credit. However, you can't use Azure Prepayment credit to pay for charges for third party products and services including those from the Azure Marketplace.

Monitor costs

Azure Data Factory costs can be monitored at the factory, pipeline, pipeline-run and activity-run levels.

Monitor costs at factory level with Cost Analysis

As you use Azure resources with Data Factory, you incur costs. Azure resource usage unit costs vary by time intervals (seconds, minutes, hours, and days) or by unit usage (bytes, megabytes, and so on.) As soon as Data Factory use starts, costs are incurred and you can see the costs in cost analysis.

When you use cost analysis, you view Data Factory costs in graphs and tables for different time intervals. Some examples are by day, current and prior month, and year. You also view costs against budgets and forecasted costs. Switching to longer views over time can help you identify spending trends. And you see where overspending might have occurred. If you've created budgets, you can also easily see where they're exceeded.

To view Data Factory costs in cost analysis:

  1. Sign in to the Azure portal.
  2. Open the scope in the Azure portal and select Cost analysis in the menu. For example, go to Subscriptions, select a subscription from the list, and then select Cost analysis in the menu. Select Scope to switch to a different scope in cost analysis.
  3. By default, cost for services are shown in the first donut chart. Select the area in the chart labeled Azure Data Factory v2.

Actual monthly costs are shown when you initially open cost analysis. Here's an example showing all monthly usage costs.

Plan to manage costs for Azure Data Factory - Azure Data Factory (6)

  • To narrow costs for a single service, like Data Factory, select Add filter and then select Service name. Then, select Azure Data Factory v2.

Here's an example showing costs for just Data Factory.

Plan to manage costs for Azure Data Factory - Azure Data Factory (7)

In the preceding example, you see the current cost for the service. Costs by Azure regions (locations) and Data Factory costs by resource group are also shown. From here, you can explore costs on your own.

Monitor costs at pipeline level with Cost Analysis


Monitoring costs at pipeline level is a preview feature currently only available in Azure Data Factory, and not Synapse pipelines.

In certain cases, you may want a granular breakdown of cost of operations within our factory, for instance, for charge back purposes. Integrating Azure Billing cost analysis platform, Data Factory can separate out billing charges for each pipeline. By opting in Azure Data Factory detailed billing reporting for a factory, you can better understand how much each pipeline is costing you, within the aforementioned factory.

(Video) Cathrine Wilhelmsen - Lessons Learned: Understanding Azure Data Factory and Synapse Pipelines Prici

You need to opt in for each factory that you want detailed billing for. To turn on per pipeline detailed billing feature,

  1. Go to Azure Data Factory portal
  2. Under Manage tab, select Factory setting in General section
  3. Select Showing billing report by pipeline
  4. Publish the change

Plan to manage costs for Azure Data Factory - Azure Data Factory (8)


The detailed pipeline billing settings is not included in the exported ARM templates from your factory. That means Continuous Integration and Delivery (CI/CD) will not overwrite billing behaviors for the factory. This allows you to set different billing behaviors for development, test, and production factories.

Once the feature is enabled, each pipeline will have a separate entry in our Billing report: It shows exactly how much each pipeline costs, in the selected time interval. It allows you to identify spending trends, and notice overspending, if any occurred.

Plan to manage costs for Azure Data Factory - Azure Data Factory (9)

Using the graphing tools of Cost Analysis, you get similar charts and trends lines as shown above, but for individual pipelines. You also get the summary view by factory name, as factory name is included in billing report, allowing for proper filtering when necessary.

The change only impacts how bills are emitted going forward, and does not change past charges. Please give some time before the change populate to billing report: typically, the change is reflected within 1 day.


By opting in the per billing setting, there will be one entry for each pipeline in your factory. Please be particularly aware if you have excessive amount of pipelines in the factory, as it may significantly lengthen and complicate your billing report.


Following are known limitations of per pipeline billing features. These billing meters won't file under the pipeline that spins it, but instead will file under a fall-back line item for your factory.

  • Data Factory Operations charges, including Read/Write and Monitoring
  • Charges for Azure Data Factory SQL Server Integration Services (SSIS) nodes
  • If you have Time to Live (TTL) configured for Azure Integration Runtime (Azure IR), Data Flow activities run on these IR won't file under individual pipelines.

Monitor consumption at pipeline-run level in Azure Data Factory

Depending on the types of activities you have in your pipeline, how much data you're moving and transforming, and the complexity of the transformation, executing a pipeline will spin different billing meters in Azure Data Factory.

(Video) Azure Cost Analysis - Azure Pricing Calculator - My Azure Cost Analysis- Azure Tutorial 2021

You can view the amount of consumption for different meters for individual pipeline runs in the Azure Data Factory user experience. To open the monitoring experience, select the Monitor & Manage tile in the data factory blade of the Azure portal. If you're already in the ADF UX, select on the Monitor icon on the left sidebar. The default monitoring view is list of pipeline runs.

Clicking the Consumption button next to the pipeline name will display a pop-up window showing you the consumption for your pipeline run aggregated across all of the activities within the pipeline.

Plan to manage costs for Azure Data Factory - Azure Data Factory (10)

Plan to manage costs for Azure Data Factory - Azure Data Factory (11)

The pipeline run consumption view shows you the amount consumed for each ADF meter for the specific pipeline run, but it doesn't show the actual price charged, because the amount billed to you is dependent on the type of Azure account you have and the type of currency used. To view the full list of supported account types, see Understand Cost Management data.

Monitor consumption at activity-run level in Azure Data Factory

Once you understand the aggregated consumption at pipeline-run level, there are scenarios where you need to further drill down and identify which is the most costly activity within the pipeline.

To see the consumption at activity-run level, go to your data factory Author & Monitor UI. From the Monitor tab where you see a list of pipeline runs, select the pipeline name link to access the list of activity runs in the pipeline run. Select on the Output button next to the activity name and look for billableDuration property in the JSON output:

Here's a sample out from a copy activity run:

Plan to manage costs for Azure Data Factory - Azure Data Factory (12)

And here's a sample out from a Mapping Data Flow activity run:

Plan to manage costs for Azure Data Factory - Azure Data Factory (13)

Create budgets

You can create budgets to manage costs and create alerts that automatically notify stakeholders of spending anomalies and overspending risks. Alerts are based on spending compared to budget and cost thresholds. Budgets and alerts are created for Azure subscriptions and resource groups, so they're useful as part of an overall cost monitoring strategy.

Budgets can be created with filters for specific resources or services in Azure if you want more granularity present in your monitoring. Filters help ensure that you don't accidentally create new resources that cost you extra money. For more information about the filter options available when you create a budget, see Group and filter options.

Export cost data

You can also export your cost data to a storage account. This is helpful when you need or others to do other data analysis for costs. For example, finance teams can analyze the data using Excel or Power BI. You can export your costs on a daily, weekly, or monthly schedule and set a custom date range. Exporting cost data is the recommended way to retrieve cost datasets.

(Video) Azure Data Factory Tutorial | Introduction to ETL in Azure

Next steps

  • Learn how to optimize your cloud investment with Azure Cost Management.
  • Learn more about managing costs with cost analysis.
  • Learn about how to prevent unexpected costs.
  • Take the Cost Management guided learning course.
  • Azure Data Factory pricing page
  • Understanding Azure Data Factory through examples
  • Azure Data Factory pricing calculator


How do I reduce cost in Azure Data Factory? ›

Minimize the number of activities.

You pay for at least one minute for each activity. If you have many pipelines or frequently executed pipelines, having many activities starts adding up. If you really really want to save on costs in ADF, you can run everything on a self-hosted integration runtime.

What is Azure cost management in Azure? ›

What is Azure Cost Management? Azure Cost Management is a free solution offered to Azure cloud customers via the Azure portal. It provides information about your overall costs and utilization across all Azure services and Azure Marketplace products.

How do you use cost management in Azure? ›

To enable Cost Management in the Azure portal, you must have confirmed customer acceptance of the Microsoft Customer Agreement (on behalf of the customer) and transitioned the customer to the Azure Plan. Only the costs for subscriptions that are transitioned to the Azure plan are available in Cost Management.

What are the 4 steps in cost management? ›

While cost management overall is a complicated process and a critical project management knowledge area, we can break it down into four processes:
  1. Resource planning. ...
  2. Cost estimation. ...
  3. Cost budget. ...
  4. Cost control.
Mar 18, 2022

What is in a cost management plan? ›

A cost management plan is a document that helps you map and control a budget. It enables project managers to estimate their costs, allocate resources to the right areas, and control overall spending. Cost management plans keep all project costs in one place, including direct and indirect costs.

Where is cost management in Azure? ›

Cost Management is available from within the Billing experience. It's also available from every subscription, resource group, and management group in the Azure portal.

What are the 5 functions of cost management? ›

Planning, communication, motivation, appraisal, and decision-making are the features that make managing costs an important business procedure. Resource allocation, cost estimation, cost budgeting, and cost control are the major functions of the cost management process.

What should you use to track costs of Azure resources? ›

Azure Cost Management + Billing is the primary tool you'll use to analyze your usage and costs. It gives you multiple options to analyze your monthly charges for different Azure Monitor features and their projected cost over time.

What does the Azure cost management tool do? ›

Azure Cost Analysis

Azure Cost Management's Cost Analysis tool helps you break down the details of your Azure spend—with this tool you can take a more in-depth look into exactly what everything costs, and do all kinds of grouping and filtering across your resources.

What are the main factors that affect Azure cost? ›

Azure has data centers across the globe. Usage costs differ according to the location offering particular Azure services, products and resources—these costs factor in demand, popularity and local infrastructure costs.

What are the 3 pricing models of Azure? ›

Azure Pricing Models

Microsoft offers three main ways to pay for Azure VMs and other cloud resources: pay as you go, reserved instances, and spot instances.

How do you avoid charges in Azure? ›

Usage exceeds the limits of free services

For example, you get 5 GB of File storage each month. If in a month, you only use 2 GB, the remaining 3 GB doesn't roll over to the next month. To avoid getting charged, keep your usage within the limits.

What is a key strategy for keeping costs low among factory labor? ›

Lean Production

Essentially, with a more efficient production process, employees can produce more units—thus lowering your labor cost per unit. In addition to eliminating non-value-added processes, lean production also helps eliminate bottlenecks within the typical production line.

Can you give 5 examples of techniques on how do you reduce company cost? ›

10 ways to reduce your business costs
  • Explore an alternative place of business.
  • Draw up a budget and stick to it.
  • Move marketing online.
  • Pool your equipment with other businesses (or barter)
  • Use part-time and freelance staff.
  • Don't automatically renew premiums and services.
  • Avoid unnecessary charges for finance.

What are the most effective ways to reduce project costs? ›

Tips on Reducing Project Costs
  • Improve project estimates.
  • Don't let changes derail the project.
  • Use a project baseline to assess the state of your project.
  • Manage risks.
  • Keep control of the project budget.
  • Take measures to avoid project delays.
  • Reduce project scope and/or duration.
Feb 21, 2022

What are some other options to reduce costs? ›

13 Simple & Effective Ways to Reduce Business Costs in 2023
  • Use The Right Technology.
  • Rely On Modern Marketing Methods.
  • Go Paperless.
  • Create a Budget.
  • Lower Your Financial Expenditures.
  • Time Management Cannot Be Overlooked.
  • Consider Location.
  • Buy Refurbished Equipment.
Nov 13, 2022

What is the example of cost reduction? ›

Cost cutting measures may include laying off employees, reducing employee pay, closing facilities, streamlining the supply chain, downsizing to a smaller office, or moving to a less expensive building or area, reducing or eliminating outside professional services, such as advertising agencies and contractors, etc.

What are the 4 types of costing? ›

Costs are broadly classified into four types: fixed cost, variable cost, direct cost, and indirect cost.

What are the methods of cost planning? ›

There are two main methods used for effective cost planning, they are Elemental cost planning system and the Comparative system.

What are the 3 components of cost? ›

The three general categories of costs included in manufacturing processes are direct materials, direct labor, and overhead. Note that there are a few exceptions, since some service industries do not have direct material costs, and some automated manufacturing companies do not have direct labor costs.

What are 3 ways a project manager controls costs? ›

Cost Control Techniques
  • 1 - Planning the Project Budget. You would need to ideally make a budget at the beginning of the planning session with regard to the project at hand. ...
  • 2 - Keeping a Track of Costs. ...
  • 3 - Effective Time Management. ...
  • 4 - Project Change Control. ...
  • 5 - Use of Earned Value.

How do I enable cost management in Azure? ›

Enable access to costs in the Azure portal

To enable an option in the Azure portal: Sign in to the Azure portal at with an enterprise administrator account. Select the Cost Management + Billing menu item. Select Billing scopes to view a list of available billing scopes and billing accounts.

How do I track my Azure cost? ›

Sign in to the Azure portal. Search for Cost Management + Billing. If you have access to multiple billing accounts, select the billing scope for your EA billing account. Select Usage + charges.

What are the different areas of cost management? ›

While cost management is viewed as a continuous process, it helps to split the function into four steps: resource planning, estimation, budgeting and control.

What are the 2 types of cost control? ›

Here are five cost control methods that allow a company to maintain and track its overall costs:
  • Planning the budget properly. ...
  • Monitoring all expenses using checkpoints. ...
  • Using change control systems. ...
  • Having time management. ...
  • Tracking earned value.
Apr 13, 2021

What are the 5 types of cost? ›

The 5 costs they cover are:
  • Direct cost.
  • Indirect cost.
  • Fixed cost.
  • Variable cost.
  • Sunk cost.

What are the 3 important services offered by Azure? ›

This gives users the flexibility to use their preferred tools and technologies. In addition, Azure offers four different forms of cloud computing: infrastructure as a service (IaaS), platform as a service (PaaS), software as a service (SaaS) and serverless functions.

Which Azure services they can use to reduce cost and improve efficiency? ›

Azure Advisor helps you optimize and improve efficiency by identifying idle and underutilized resources. This tutorial walks you through an example where you identify underutilized Azure resources and then you take action to reduce costs.

Which tool helps you estimate the cost you will increase or Azure? ›

Azure Cost Calculator is a free cost management tool that can help you estimate your cloud costs for new Azure deployments, or variations of your existing workloads.

What is the purpose of cost management? ›

Cost management is the process of planning and controlling the costs associated with running a business. It includes collecting, analyzing and reporting cost information to more effectively budget, forecast and monitor costs.

What are two Azure management tools? ›

In addition to the graphical user interface offered at the Azure Portal, we have the ability to manage and interact with Azure via Azure Powershell, Azure Command Line Interface (CLI), Azure Cloud Shell, and the Azure Mobile Application available on iOS and Android platforms.

What are Azure 4 management scopes? ›

Scope levels

In Azure, you can specify a scope at four levels: management group, subscription, resource group, and resource. Scopes are structured in a parent-child relationship. Each level of hierarchy makes the scope more specific.

How can Azure lower capital expenditure costs? ›

With a public cloud deployment in Azure, you only need to pay for the usage of these devices. This eliminates CapEx costs. With a hybrid cloud deployment in Azure, you can lower CapEx costs because you only need to pay for devices that are on-premises.

What are the three key factors in defining cost on cloud? ›

Capacity, transactions, Networking are the three main key factors in defining cost on cloud storage.

What is Azure expenditure model? ›

Operating Expenditures or OpEx is defined as funds that are used by organizations for their day-to-day operations. Think of OpEx as your electricity and water bill. The more you use, the higher the charges. Azure on-demand or pay-as-you-go is an example of an OpEx model.

What are the 3 principles of pricing strategy? ›

In this short guide we approach the three major and most common pricing strategies:
  • Cost-Based Pricing.
  • Value-Based Pricing.
  • Competition-Based Pricing.
Sep 19, 2017

What is the cheapest way to store data in Azure? ›

Consider Azure Blob Storage Block Blobs instead of storing binary image data in Azure SQL Database. Blob storage is cheaper than Azure SQL Database. If your design requires SQL, store a lookup table in SQL Database and retrieve the document when needed to serve it to the user in your application middle tier.

How is Azure data/factory charged? ›

You pay for the Data Flow cluster execution and debugging time per vCore-hour. The minimum cluster size to run a Data Flow is 8 vCores. Execution and debugging charges are prorated by the minute and rounded up.

Which are ways to save money on Azure? ›

13 Ways To Save Money When Using Microsoft Azure
  1. Don't forget to shut down your Azure VM's correctly. ...
  2. Delete your staging slots for cloud services. ...
  3. Pre-pay for Microsoft Azure (even on a pay-as-you-go Azure account) ...
  4. Consider an enterprise agreement. ...
  5. Are you a start-up? ...
  6. Switching Azure price regions.
Jul 6, 2022

Which is the absolute cheapest way to store data in Azure? ›

The Archive tier offers the lowest Azure storage costs available on the Azure cloud: depending on the region, rates can be as low as $0.00099 to $0.002 per GB up to first 50 TBs. However, reading data from an archive tier can be a costly activity which charges $5 for every 10,000 read operations.

What can you leverage to you reduce the cost of you Azure deployment? ›

By deploying the servers as containers using Azure Kubernetes Service (AKS), you could consolidate into three or four VMs and spread the WordPress instances between them. Because AKS pricing per host server is the same as standard Azure VM pricing, you could reduce your hosting costs by as much as 75%.

Which options you will select to reduce the Azure cost for the company? ›

You need to reduce the Azure costs for the company. Which unused resources should you remove? You are charged for public IP addresses. Therefore, deleting unused public IP addresses will reduce the Azure costs.

What are the 3 types of data that can be stored in Azure? ›

Azure storage types include objects, managed files and managed disks. Customers should understand their often-specific uses before implementation. Each storage type has different pricing tiers -- usually based on performance and availability -- to make each one accessible to companies of every size and type.

Which Azure storage has lowest cost of data storage? ›

Azure Managed Disks

The lowest cost disk is a P1 disk, which has a 4 GiB capacity and costs 60 cents per month, plus 3 cents per mount per month.

Which of the following is a good practice to reduce costs? ›

Reduce the frequency of data collection. Use available data. Reduce the sample size. Use cheaper data collection methods.

Which of the following factors affects costs in Azure? ›

The way you use resources, your subscription type, and pricing from third-party vendors have an impact on the cost of your Azure implementation. Among these factors that affect your costs are resource type, usage meters, resource usage, Azure subscription types, and Azure Marketplace.

What should you use to track the costs of Azure? ›

Azure Cost Management + Billing is the primary tool you'll use to analyze your usage and costs. It gives you multiple options to analyze your monthly charges for different Azure Monitor features and their projected cost over time.

Which tool helps you eliminate the costs you will incur on Azure? ›

Azure Advisor helps you optimize and improve efficiency by identifying idle and underutilized resources. This tutorial walks you through an example where you identify underutilized Azure resources and then you take action to reduce costs.

How can I reduce my cloud cost? ›

8 ways to reduce cloud costs
  1. Opt for reserved or spot instances. ...
  2. Capacity planning. ...
  3. Limit data transfer fees. ...
  4. Use cost monitoring tools. ...
  5. Prevent cloud sprawl. ...
  6. Cache storage strategically. ...
  7. Run workloads where the computing is cheaper. ...
  8. Restrict access to the cloud.
May 5, 2022


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