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Difficulty: HardAzure Cost Management, Billing, and Resource Tags

An organization wants to manage its cloud spend in Azure. They set up an Azure Cost Management budget at the subscription scope. The requirement is to send an email notification to the finance department when the subscription's actual cost exceeds 90%90\% of the budget. Additionally, if the actual cost exceeds 110%110\%, the organization wants to automatically trigger a script that shuts down dev/test virtual machines to halt further spending. Which of the following budget configurations should the organization use?

  1. Configure one budget alert for the 90%90\% threshold to send an email notification, and configure another budget alert for the 110%110\% threshold to trigger an Azure Action Group that executes an automation runbook.Answer
  2. B
    Apply a custom tag named `BudgetStop` to the resource group containing the virtual machines, assuming the virtual machines will inherit the tag and automatically shut down when the subscription budget limit is exceeded.
  3. C
    Configure the 90%90\% threshold to send an email notification, and configure the 110%110\% threshold to automatically apply a ReadOnly resource lock to the subscription to stop ongoing compute charges.
  4. D
    Configure a Capital Expenditure (CapEx) budget limit that automatically stops subscription billing and halts resource execution once the 110%110\% threshold is crossed.

Answer

Configure one budget alert for the 90%90\% threshold to send an email notification, and configure another budget alert for the 110%110\% threshold to trigger an Azure Action Group that executes an automation runbook.
The correct configuration uses Azure Cost Management's native capability to set multiple budget alert thresholds. The threshold at 90%90\% sends a standard email notification, and the threshold at 110%110\% triggers an Azure Action Group. This Action Group executes an automation runbook containing the script to shut down the virtual machines, completing the automation workflow.

Step-by-Step Solution

1
Analyze the requirements for notifying users and automated cost containment.
Identify that the notification requires standard alerting (email) and the enforcement action requires automation (running a script).
Azure Cost Management budgets natively support configuring alerts at specified percentage thresholds.
2
Determine the mechanism to trigger automated tasks from Azure Cost Management.
Action Groups are the standard mechanism in Azure to trigger automation (Runbooks, Logic Apps, Azure Functions) when alert conditions are met.
Budgets do not have a built-in toggle to stop VMs, so they must call an Action Group to handle the execution of the shutdown script.
3
Evaluate and eliminate distractors based on governance and cost concepts.
Confirm that tags are not inherited and do not automate actions, resource locks do not stop compute execution, and cloud resources run on an OpEx model rather than CapEx.
This ensures the chosen solution relies on valid Azure functionality and avoids common cloud governance misconceptions.

Key Concept

Azure Cost Management budgets can trigger notifications and integrate with Azure Action Groups to execute automated scripts for cost containment.
Estimated Time:2m 0s
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Topics

Azure Cost Management, Billing, and Resource Tags

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