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Hyperscaler compute · by Microsoft

Azure Virtual Machines

Microsoft's cloud VMs for Linux and Windows, billed per hour with reserved and spot discounts, strongest for Windows Server, SQL Server and Microsoft-centric companies.

Visit azure.microsoft.com ↗ Alternatives Trial EU region
Azure Virtual Machines homepage
§1

Overview

Azure Virtual Machines is Microsoft's infrastructure compute service, running Linux distributions and Windows Server in Azure regions around the world. Families range from burstable B-series for light workloads through general-purpose D-series to memory, compute, storage and GPU-optimized sizes.

The VM price covers compute and the temporary local disk only. The operating system disk is a managed disk billed at disk rates, instance-level public IPs cost extra, and standard egress charges apply. A VM in the 'Stopped (Deallocated)' state is not billed for compute, but one that is merely stopped from inside the OS still is.

Azure's advantages are Windows and Microsoft licensing (Windows VMs include the license, and Azure Hybrid Benefit lets you reuse your own), integration with Entra ID and Microsoft 365, and a long list of enterprise programs. For a single Linux server on a budget it is one of the more expensive and complex options. Before committing, price the whole setup in the Azure pricing calculator, including disks, IP addresses and expected egress, and consider a reservation once usage is steady.

§2

Pricing and plans

Plan Price What you get
B1s (Linux) $0.0104/hour Burstable B-series, East US, pay as you go
B1s (Windows) $0.014/hour Same size with Windows license included
B2s (Linux) $0.0416/hour Burstable B-series, East US
B2s (Windows) $0.0496/hour Windows license included
Reserved Instances Custom 1- or 3-year reservations for lower rates
Spot VMs Variable Spare capacity that Azure can evict

Prices are pay-as-you-go retail rates for East US read from Microsoft's public Azure Retail Prices API (effective 1 October 2025); the pricing web page loads its tables in the browser and could not be read as text. Monthly figures assume 730 hours. Managed OS disks, public IP addresses and egress are billed separately. New customers can get 12 months of selected free services plus 65+ always-free services, but must move to pay-as-you-go within 30 days to keep the 12-month offer.

Source: azure.microsoft.com/en-us/pricing/details/virtual-machines/linux/ · prices as published, excluding tax.

§3

What it does

Linux and Windows
Run Windows Server with the license included, or Linux images such as Ubuntu with Canonical patching at no extra charge.
Free load balancing and autoscale
All current-generation VMs include load balancing and auto-scaling at no cost.
Burstable B-series
Low-cost VMs that bank CPU credits when idle and burst when needed.
Reservations and Spot
Reserved Instances for 1 or 3 years and Spot VMs for interruptible work reduce costs.
Deallocation
Deallocated VMs stop compute billing while keeping their disks.
Free services for new customers
12 months of selected free services plus 65+ always-free services with an Azure account.
§4

Strengths and limitations

Strengths

  • Best fit for Windows Server, SQL Server and Microsoft licensing.
  • Integration with Entra ID, Microsoft 365 and Azure's managed services.
  • Large number of regions and enterprise support and contract options.
  • Public retail price API that lists every VM rate.

Limitations

  • Managed disks, public IPs and egress are billed on top of the VM price.
  • A VM stopped from inside the operating system is still billed for its cores until it is deallocated.
  • Microsoft does not provide support for Linux Marketplace images; some publishers charge per minute for support.
  • The 12-month free services offer requires moving to pay-as-you-go within 30 days.
§5

Who it suits

Good for

  • Companies standardised on Microsoft tools
  • Windows Server and SQL Server workloads
  • Enterprises needing compliance programs and contracts

Look elsewhere if

  • Cheap single Linux servers for hobby projects
  • Bandwidth-heavy sites on a small budget
§6

Alternatives to Azure Virtual Machines

Tool From Free option Stages
Google Compute Engine Hyperscaler compute
$6.11/mo Free tier
€5.25/mo Paid
Amazon EC2 Hyperscaler compute
$0.0168/hr Trial
— Free tier
€6.55/mo Paid
$5/mo Paid

All VPS and cloud servers →

§7

Questions

What is the cheapest Azure VM?

Among common burstable sizes, the B1s Linux VM costs $0.0104 per hour in East US, roughly $7.59 for a full month, plus the managed OS disk.

Am I billed for a stopped Azure VM?

If its status is 'Stopped (Deallocated)' you are not billed for compute; if it is only 'Stopped', allocated cores are still billed.

Does Azure include the Windows license in the VM price?

Windows VM rates include the license, which is why B1s Windows is $0.014 per hour versus $0.0104 for Linux in East US.

Does Azure have a free VM?

New customers get 12 months of selected free services and 65+ always-free services; the exact VM hours are listed on Azure's free services page.

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