Azure Cost Optimization Skill
Analyze Azure subscriptions to identify cost savings through orphaned resource cleanup, rightsizing, and optimization recommendations based on actual usage data.
When to Use This Skill
Use this skill when the user asks to:
- Optimize Azure costs or reduce spending
- Analyze Azure subscription for cost savings
- Generate cost optimization report
- Find orphaned or unused resources
- Rightsize Azure VMs, containers, or services
- Identify where they're overspending in Azure
- Optimize Redis costs specifically - See Azure Redis Cost Optimization for Redis-specific analysis
Rules
- Read-only analysis first — never delete or modify resources during the assessment phase; remediation is a separate user-approved step
- Validate prerequisites before starting (Azure CLI authenticated,
costmanagement + resource-graph extensions, azqr installed, Cost Management Reader + Monitoring Reader + Reader roles)
- Use real data — recommendations must be grounded in actual cost queries and utilization metrics, not assumptions
- Cite sources — every savings estimate must reference the underlying cost query or pricing API result (audit trail in
output/cost-query-result<timestamp>.json)
- Classify safely — mark recommendations as Safe / Review / Risky; never auto-apply destructive operations
- Redis-specific scope — when the user asks about Redis only, follow Azure Redis Cost Optimization instead of the general subscription workflow
- Save artifacts to
output/costoptimizereport<timestamp>.md and the audit trail JSON
- Out of scope: deploying resources (use
azure-deploy), security issues (use azure-compliance), general diagnostics (use azure-diagnostics)
Instructions
High-level step list (full procedure in
references/workflow-steps.md):
| # |
Step |
Reference |
| 0 |
Validate prerequisites (Azure CLI, costmanagement + resource-graph extensions, azqr, RBAC) |
workflow-steps.md |
| 1 |
Load Azure cost-optimization best practices via mcp_azure-mcp_get_azure_bestpractices |
workflow-steps.md |
| 1.5 |
(Conditional) Redis-specific analysis branch |
azure-redis.md |
| 1.6 |
(Redis branch) Choose analysis scope (subscription / prefix / tenant-wide) |
azure-redis.md |
| 2 |
Run Azure Quick Review (extension_azqr) for orphaned-resource discovery |
azure-quick-review.md |
| 3 |
Discover resources cross-subscription via Azure Resource Graph |
azure-resource-graph.md |
| 4–9 |
Cost queries, pricing validation, metrics, report, audit trail, cleanup |
detailed-workflow-steps.md |
Branching rule: when the user mentions Redis, Azure Cache for Redis, or Azure Managed
Redis, follow the Redis-specific path (Steps 1.5 → 1.6 → Redis-only analysis) instead of
the general subscription workflow.
Output
The skill generates:
Cost Optimization Report (output/costoptimizereport<timestamp>.md)
- Executive summary with total costs and top drivers
- Detailed cost breakdown with Azure Portal links
- Prioritized recommendations with actual data and estimated savings
- Implementation commands with safety warnings
Cost Query Results (output/cost-query-result<timestamp>.json)
- Audit trail of all cost queries and responses
- Validation evidence for recommendations
Important Notes
📋 Reference: Read references/best-practices-notes.md for data classification labels, best practices, common pitfalls, and safety requirements.
SDK Quick References
Reference Index
Load these on demand — do NOT read all at once:
| Reference |
When to Load |
../entra-app-registration/references/auth-best-practices.md |
Auth Best Practices |
references/azure-quick-review.md |
Azure Quick Review |
references/azure-redis.md |
Azure Redis |
references/azure-resource-graph.md |
Azure Resource Graph |
references/workflow-steps.md |
Steps 0–3: prerequisites, best practices, azqr, resource discovery |
references/detailed-workflow-steps.md |
Steps 4-9: cost queries, pricing, metrics, report, audit, cleanup |
references/best-practices-notes.md |
Data classification, best practices, pitfalls, safety |
1---2name: azure-cost-optimization3description: **ANALYSIS SKILL** — Identify cost savings across Azure subscriptions via cost + utilization analysis. WHEN: "optimize Azure costs", "reduce Azure spending", "find cost savings", "rightsize VMs", "find orphaned resources", "optimize Redis costs". DO NOT USE FOR: deploying (azure-deploy), general diagnostics (azure-diagnostics), security issues (azure-compliance).4license: MIT5---67# Azure Cost Optimization Skill89Analyze Azure subscriptions to identify cost savings through orphaned resource cleanup, rightsizing, and optimization recommendations based on actual usage data.1011## When to Use This Skill1213Use this skill when the user asks to:1415- Optimize Azure costs or reduce spending16- Analyze Azure subscription for cost savings17- Generate cost optimization report18- Find orphaned or unused resources19- Rightsize Azure VMs, containers, or services20- Identify where they're overspending in Azure21- **Optimize Redis costs specifically** - See [Azure Redis Cost Optimization](./references/azure-redis.md) for Redis-specific analysis2223## Rules2425- **Read-only analysis first** — never delete or modify resources during the assessment phase; remediation is a separate user-approved step26- **Validate prerequisites** before starting (Azure CLI authenticated, `costmanagement` + `resource-graph` extensions, `azqr` installed, Cost Management Reader + Monitoring Reader + Reader roles)27- **Use real data** — recommendations must be grounded in actual cost queries and utilization metrics, not assumptions28- **Cite sources** — every savings estimate must reference the underlying cost query or pricing API result (audit trail in `output/cost-query-result<timestamp>.json`)29- **Classify safely** — mark recommendations as Safe / Review / Risky; never auto-apply destructive operations30- **Redis-specific scope** — when the user asks about Redis only, follow [Azure Redis Cost Optimization](./references/azure-redis.md) instead of the general subscription workflow31- **Save artifacts** to `output/costoptimizereport<timestamp>.md` and the audit trail JSON32- **Out of scope**: deploying resources (use `azure-deploy`), security issues (use `azure-compliance`), general diagnostics (use `azure-diagnostics`)3334## Instructions3536High-level step list (full procedure in37[`references/workflow-steps.md`](./references/workflow-steps.md)):3839| # | Step | Reference |40| --: | ---------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------- |41| 0 | Validate prerequisites (Azure CLI, `costmanagement` + `resource-graph` extensions, azqr, RBAC) | [`workflow-steps.md`](./references/workflow-steps.md) |42| 1 | Load Azure cost-optimization best practices via `mcp_azure-mcp_get_azure_bestpractices` | [`workflow-steps.md`](./references/workflow-steps.md) |43| 1.5 | (Conditional) Redis-specific analysis branch | [`azure-redis.md`](./references/azure-redis.md) |44| 1.6 | (Redis branch) Choose analysis scope (subscription / prefix / tenant-wide) | [`azure-redis.md`](./references/azure-redis.md) |45| 2 | Run Azure Quick Review (`extension_azqr`) for orphaned-resource discovery | [`azure-quick-review.md`](./references/azure-quick-review.md) |46| 3 | Discover resources cross-subscription via Azure Resource Graph | [`azure-resource-graph.md`](./references/azure-resource-graph.md) |47| 4–9 | Cost queries, pricing validation, metrics, report, audit trail, cleanup | [`detailed-workflow-steps.md`](./references/detailed-workflow-steps.md) |4849> **Branching rule**: when the user mentions Redis, Azure Cache for Redis, or Azure Managed50> Redis, follow the Redis-specific path (Steps 1.5 → 1.6 → Redis-only analysis) instead of51> the general subscription workflow.5253## Output5455The skill generates:56571. **Cost Optimization Report** (`output/costoptimizereport<timestamp>.md`)58 - Executive summary with total costs and top drivers59 - Detailed cost breakdown with Azure Portal links60 - Prioritized recommendations with actual data and estimated savings61 - Implementation commands with safety warnings62632. **Cost Query Results** (`output/cost-query-result<timestamp>.json`)64 - Audit trail of all cost queries and responses65 - Validation evidence for recommendations6667## Important Notes6869📋 **Reference**: Read `references/best-practices-notes.md` for data classification labels, best practices, common pitfalls, and safety requirements.7071## SDK Quick References7273- **Redis Management**: [.NET](references/sdk/azure-resource-manager-redis-dotnet.md)7475## Reference Index7677Load these on demand — do NOT read all at once:7879| Reference | When to Load |80| --------------------------------------- | ------------------------------------------------------------------ |81| `../entra-app-registration/references/auth-best-practices.md` | Auth Best Practices |82| `references/azure-quick-review.md` | Azure Quick Review |83| `references/azure-redis.md` | Azure Redis |84| `references/azure-resource-graph.md` | Azure Resource Graph |85| `references/workflow-steps.md` | Steps 0–3: prerequisites, best practices, azqr, resource discovery |86| `references/detailed-workflow-steps.md` | Steps 4-9: cost queries, pricing, metrics, report, audit, cleanup |87| `references/best-practices-notes.md` | Data classification, best practices, pitfalls, safety |
jonathan-vella