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Chapter 4 · Optimization·v1.0.0·Updated 6/30/2026·~14 min

What's changed: Created AZ-120 Chapter 4 (Domain 4 first-half: performance/cost optimization (Azure Advisor recommendations, VM resizing, Reserved Instances vs Savings Plans, storage cost, archiving); network and app/DB optimization (Azure Network Watcher for latency/throughput, proximity/Accelerated Networking/VM size, app-server horizontal/vertical scaling, DB tuning, continuous-improvement cycle)).

4.1Optimizing performance and cost

Key points

Understand Azure Advisor performance/cost recommendations, Azure Savings Plans and Reserved Instances, VM resizing, storage cost optimization, and data optimization via archiving.

SAP runs on large VMs and high-performance storage, so costs are significant and workloads vary. Continuously optimize both performance and cost.

4.1.1Azure Advisor and VM resizing

Azure Advisor gives cost/performance/reliability/security recommendations from real telemetry (e.g., resize unused/oversized VMs, suggest reservations). If an SAP VM is over/under-sized, right-size it via VM resizing (within SAP-certified SKUs)—oversize costs money, undersize risks performance/support. Reduce storage cost by revisiting disk type/size and deleting unneeded snapshots. Think "list usage-based optimization recommendations" = Azure Advisor; "right-size the VM" = VM resizing.

4.1.2Commitment discounts and archiving

For steadily running SAP VMs, commitment discounts help. Azure Reserved Instances (RI) reserve a specific VM size/region for 1–3 years (less flexible, higher discount); Azure Savings Plans commit to an hourly spend applied flexibly across compute (discount survives resizing/other SKUs). For variability or future resizing, prefer Savings Plans; for fixed configurations, RI. For long-term data, archiving (move old data to cheaper tiers/another store) optimizes production DB performance and cost.

Exam point

Cues: "usage-based cost/performance recommendations" = Azure Advisor. "right-size the VM" = VM resizing (within SAP-certified SKUs). "reserve a fixed config 1–3 years, higher discount" = Reserved Instances. "commit hourly spend, flexible (resize OK)" = Savings Plans. "offload old data" = archiving.

Warning

Watch the mix-ups: (1) Reserved Instances (fixed SKU/region, higher discount) vs Savings Plans (spend commitment, flexible). (2) VM resizing stays within SAP-certified SKUs (non-certified not allowed). (3) Azure Advisor (recommendations) vs Azure Monitor (metrics/monitoring). (4) Archiving is offloading to cheaper tiers, not deletion.

Diagram: Azure Advisor gives usage-based cost/performance/reliability recommendations; Reserved Instances (max discount) for always-on fixed SKUs; Savings Plans (flexible spend commitment) when SKUs change; resize VMs within SAP-certified SKUs; move old data to the Archive tier to optimize cost.
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4.1.3Section summary

  • Azure Advisor for usage-based cost/performance recommendations; right-size via VM resizing (within SAP-certified SKUs)
  • Fixed config = Reserved Instances (higher discount); variable/flexible = Savings Plans (spend commitment)
  • Archive long-term data to cheaper tiers to optimize production DB cost/performance

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Quick check

(just a quick review)

Q1. You want a list of cost/performance recommendations (e.g., resizing unused/oversized VMs) for a running SAP environment. Best?

Q2. You want to reserve a fixed-config SAP production VM for 1–3 years for maximum discount. Best?

Q3. For an SAP environment expecting future resizing/SKU changes, you want a discount applied flexibly across compute. Best?

Q4. An SAP VM is oversized and costly; you want lower cost while meeting performance. Best?

Q5. You want to optimize production DB performance and cost by offloading old data to a cheaper store. Best?

Check your understandingPractice questions for Chapter 4: Optimization

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