What Is Microsoft Azure? Services, Pricing and How to Get Started

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Microsoft Azure account page with the Pay as you go and Try Azure for free buttons beside a monitor showing the Azure portal welcome screen

The Azure account page, where every new Azure user starts. Screenshot from azure.microsoft.com.

Microsoft Azure is Microsoft’s cloud: you rent computers, storage, databases and AI tools in Microsoft’s datacenters and pay only for what you use. You manage it all from a website called the Azure portal, from any Windows PC or browser.

Instead of buying a server, you create one in a few minutes. When you stop needing it, you delete it and the bill stops. That one idea is why businesses, developers and AI builders use Azure.

Azure has run since 2010 and now covers well over 200 services. It runs Linux as well as Windows, and it is the platform under Microsoft Foundry, Microsoft’s AI app and agent service.

Below: how Azure is organized, the services that matter, the portal, how pricing and the free account work, and how to start safely. Questions? Reach out to us directly.

Made by
Microsoft
Pricing
Pay for what you use
Free start
Free account for new users
Manage it from
Browser, PowerShell, CLI

What Is Microsoft Azure?

Azure is a cloud computing platform, which means Microsoft owns the hardware and you rent it over the internet. Microsoft runs datacenters in more than 60 regions around the world. You pick a region close to your users, choose what you need, and Azure sets it up.

Cloud services come in three broad types, and Azure sells all of them:

  • Infrastructure (IaaS): raw building blocks like virtual machines (computers that run inside Microsoft’s hardware), disks and networks. You manage the operating system.
  • Platform (PaaS): ready-made services like web hosting and managed databases. Microsoft handles the servers; you bring your app or data.
  • Software (SaaS): finished apps you just use. Microsoft 365 is the best-known example, and much of it runs on the same Microsoft cloud.

Most people meet Azure through work. If you sign in to Microsoft 365 with a work account, that account already lives in Microsoft Entra ID, the identity service Azure uses.

Reading an old Azure guide? Anything that says “Windows Azure”, “Azure Active Directory” or “Cloud Services (classic)” is out of date. The names changed, and the classic Cloud Services model was retired on August 31, 2024.

How Azure Is Organized

Everything you create in Azure sits inside four layers. Learn these once and the portal starts to make sense.

1

Account and tenant

Your sign-in, stored in Microsoft Entra ID. A company usually has one tenant for all its people.

↓
2

Subscription

The billing container. Everything inside one subscription lands on the same bill, with its own spending limits and access rules.

Example: Pay-as-you-go or the free account
↓
3

Resource group

A folder for things that belong together. Delete the group and everything in it goes too.

Example: website-prod
↓
4

Resources

The actual services you pay for.

Example: a virtual machine, a database, a storage account

Tip: put each project in its own resource group. When the project ends, deleting one group cleans up every resource in it, so nothing keeps running on your bill.

Key Azure Services

Azure lists its services by category on the products page. These are the ones most people start with.

Azure products directory with a list of service categories and AI and machine learning products such as Microsoft Foundry, Azure AI Search and Azure Databricks
Azure’s product directory, sorted into categories like AI, compute, databases and security. Screenshot from azure.microsoft.com.
COMPUTE

Virtual Machines

A virtual machine (VM) is a full Windows or Linux computer that runs in Azure. You pick the size, the region and the operating system, and it is ready in minutes.

Use one to host a website, run an old business app, or test software without touching your own PC. Stop it when you are done and you stop paying for the compute time.

Azure portal Create a virtual machine form with fields for the VM name, region, availability options, security type and a Windows Server image
AI

Microsoft Foundry

Foundry is where you build AI apps and agents on Azure. It has a catalog of models from Microsoft, OpenAI and other companies, plus a playground to test an agent before you ship it.

This is the service Microsoft used to call Azure AI Foundry, and Azure AI Studio before that.

To train your own models instead, see Azure Machine Learning. To let an AI search your own documents, see Azure AI Search.

Foundry portal agents playground with a test chat on the left and agent setup fields for name, model deployment and instructions on the right
COST

Cost Management

Cost Management shows what you have spent, what you are likely to spend by the end of the month, and which services cost the most.

Set a budget here and Azure emails you when spending crosses the line you choose.

Azure Cost Management cost analysis view with an accumulated cost chart, a forecast, and donut charts breaking spending down by service, location and resource group
ADVICE

Azure Advisor

Advisor checks your setup and gives a score for cost, security, reliability, performance and day-to-day operations. Each score comes with a list of fixes, such as shutting down a VM nobody uses.

To watch performance and get alerts when something breaks, use Azure Monitor.

Azure Advisor overview page with scores and recommendation counts for cost, security, reliability, operational excellence and performance
STORAGE

Storage

Blob Storage keeps files of any size, from backups to video. Azure Files gives you a network drive that Windows can map like any shared folder.

DATA

Databases

Azure SQL Database, Azure Database for PostgreSQL and Azure Cosmos DB are managed databases. Microsoft handles patches and backups for you. .NET apps connect with Microsoft.Data.SqlClient.

WEB

Web apps and serverless

App Service hosts websites and web apps. Azure Functions runs small pieces of code only when something triggers them, so you pay per run.

CONTAINERS

Containers

Azure Kubernetes Service (AKS) and Azure Container Apps run apps packed in containers (self-contained bundles of an app and everything it needs).

SECURITY

Identity and security

Microsoft Entra ID handles sign-in and access, and Azure requires multifactor sign-in to manage resources. Microsoft Defender for Cloud watches for threats, and Key Vault stores passwords and keys safely.

DESKTOPS

Virtual desktops

Azure Virtual Desktop streams full Windows desktops and apps to any device, so staff can work from home on a cheap laptop.

The Azure Portal and Other Ways to Manage Azure

The Azure portal at portal.azure.com is where most people work. Every portal action is also available from PowerShell, the Azure CLI and code, so you can automate anything you first did by hand.

Azure portal showing a Windows Server virtual machine overview with numbered callouts for the portal menu, search bar, Copilot button, toolbar and service menu
The Azure portal with a virtual machine open: the search bar, Copilot, the action toolbar and the service menu are numbered. Image from Microsoft Learn.
BROWSER

Azure portal

The website for everything: create resources, check costs and read alerts. The search bar at the top finds any service or resource by name.

BROWSER

Azure Cloud Shell

A command line inside the portal, with Bash and PowerShell already set up. Nothing to install, so it works from any PC.

WINDOWS

Azure CLI

A command-line tool for Windows Terminal or Command Prompt. Install it with winget install –exact –id Microsoft.AzureCLI, then sign in with az login.

WINDOWS

Azure PowerShell

The Az PowerShell module, popular with Windows admins. See our Azure PowerShell install guide and the commands worth knowing.

How Much Does Azure Cost?

There is no single price. Each service has its own rate, usually per hour, per gigabyte or per request, and the price changes by region. You get one bill per subscription for everything you used that month.

Pay-as-you-go is the default. If you know you will run something for a long time, Microsoft offers cheaper options:

Azure Pricing Options
From azure.microsoft.com/pricing. Checked October 2026
Option How it works Best for
Pay-as-you-go Pay the normal rate for what you use, billed monthly. No commitment. Testing, small projects, anything short-term
Reservations Commit to a specific resource, such as a VM size, for one or three years at a lower rate. Microsoft says this saves up to 72%. Servers that run all the time
Savings plan for compute Commit to a set hourly spend for one or three years. Microsoft says this saves up to 65% on select compute. Steady spending across changing VM types
Spot Virtual Machines Use Azure’s spare capacity at a deep discount. Azure can take the VM back when it needs the room. Batch jobs that can stop and restart
Azure Hybrid Benefit Bring Windows Server or SQL Server licenses you already own (with Software Assurance) and stop paying for the license again. Companies moving their own servers to Azure. See our migration tools guide
Dev/Test pricing Lower rates for development and testing with an eligible Visual Studio subscription. Developer teams
Azure pricing calculator with an empty estimate and popular products such as Virtual Machines, Storage Accounts, Azure SQL Database and App Service ready to add
The free Azure pricing calculator. Add services, pick a region and see a monthly estimate before you build anything. Screenshot from azure.microsoft.com.

Estimate first, then set a budget. Price your idea in the Azure pricing calculator, then create a budget alert in Cost Management on day one. For more ways to cut a bill, read our guide to reducing Azure costs.

Is There a Free Azure Account?

Yes. New Azure customers can open a free account with a $200 credit to use within 30 days. On top of the credit, the account includes free monthly amounts of popular services for 12 months, and a set of services that stay free forever within limits.

Side by side comparison of the Azure pay as you go account and the Azure free account with a 200 dollar credit for 30 days
Microsoft’s own comparison of the two ways to sign up. Screenshot from azure.microsoft.com.
CREDIT

$200 credit for 30 days

Spend it on almost any Azure service. Whatever is left after 30 days expires.

12 MONTHS

12 months of popular services

Monthly free amounts of 20+ services, including 750 hours a month of small virtual machines and a small PostgreSQL database.

ALWAYS FREE

Always-free services

Services such as Azure Functions (1 million requests a month) and a free tier of Azure Cosmos DB stay free within their limits, even after the first year.

SIGN-UP

What you need

A Microsoft or GitHub account, a phone number, and a credit or debit card for identity checks. Microsoft may place a temporary $1 hold on the card, then removes it.

What happens after 30 days

The free account does not charge your card. When the 30 days end or the credit runs out, your services are switched off unless you move to pay-as-you-go. If you upgrade, the free amounts carry on, but anything above them is billed at normal rates, so delete what you no longer use first. Full terms are on the Azure account page.

How to Get Started with Azure on Windows

All you need is a browser. These steps get you from zero to a safe test setup with a spending alert.

1 Go to the Azure account page.

2 Choose Try Azure for free, or Pay as you go if you have used a free account before.

3 Sign in with a Microsoft or GitHub account, then verify your phone and card.

4 Open the Azure portal at portal.azure.com.

5 Create a resource group for your first project: search for Resource groups, then select Create.

6 Set a budget in Cost Management, under Budgets, so Azure emails you before costs surprise you.

7 Install the Azure CLI if you want the command line: run winget install –exact –id Microsoft.AzureCLI in Windows Terminal.

Azure vs AWS vs Google Cloud

Amazon Web Services (AWS) and Google Cloud are Azure’s two big rivals. All three sell the same basic building blocks, so the choice usually comes down to what you already use.

Azure, AWS and Google Cloud Side by Side
The practical differences for a Windows-focused business
  Microsoft Azure AWS Google Cloud
Made by Microsoft Amazon Google
Strongest fit Companies already on Windows Server, SQL Server and Microsoft 365 Teams that want the oldest, broadest public cloud (launched 2006) Data analytics and teams built around Google tools
Windows Server and SQL Server Azure Hybrid Benefit lets you reuse licenses you own Supported, licensing works differently Supported, licensing works differently
Sign-in and identity Microsoft Entra ID, the same accounts as Microsoft 365 AWS IAM Google Cloud IAM
AI platform Microsoft Foundry Amazon Bedrock Vertex AI
Run it in your own building Azure Local and Azure Arc AWS Outposts Google Distributed Cloud

Our take

If your company signs in with Microsoft 365 and runs Windows servers, Azure is the natural pick: one identity system, license savings and admin tools your team already knows. If you are a solo developer with no Microsoft ties, try the free tier on two clouds and keep the one whose portal you find easier.

Is Azure Right for You?

✓

Azure fits if
You will get real value from it
✓Your company already uses Microsoft 365, Windows Server or SQL Server.
✓You want to build AI apps or agents on Microsoft Foundry.
✓You need servers for a few hours or weeks, not years.
✓You want staff to reach Windows desktops from any device.
✕

Look elsewhere if
A simpler option will do the job
✕You only need a basic website. Regular web hosting costs less and needs no setup.
✕You just want files backed up. OneDrive or a similar service is simpler.
✕You want a fixed monthly price with no chance of surprises.
✕Nobody on your team has time to learn and watch a cloud bill.

Learn More About Azure on WindowsMode

Ready to go deeper? These guides pick up where this page stops, grouped by what you want to do.

Manage and secure Azure from Windows

Watch your costs and health

Data and AI

Explore and learn

Frequently Asked Questions

Do I need Azure to use Windows 11 or Microsoft 365?
No. Windows 11 and Microsoft 365 work without an Azure subscription. You only need Azure when you want to build or host your own apps, servers or data. Your Microsoft 365 work account does live in Microsoft Entra ID, the same sign-in system Azure uses, so it works in the Azure portal too.
What happened to Windows Azure?
It is the same service under a new name. Microsoft launched it as Windows Azure in February 2010 and renamed it Microsoft Azure in March 2014, since it had grown well beyond Windows and also runs Linux.
What is Azure Active Directory called now?
Microsoft Entra ID. Microsoft renamed Azure Active Directory in 2023. Sign-in, users, groups and the features you already use work the same way under the new name.
Can I run Windows 11 in Azure?
Yes. Azure Virtual Desktop streams Windows 11 desktops and apps from Azure, including a multi-session edition that lets several people share one virtual machine. If you want one Cloud PC per person at a fixed monthly price, Microsoft’s Windows 365 runs on Azure and is simpler to manage.
What is the AZ-900 exam?
AZ-900 is the exam for Microsoft Certified: Azure Fundamentals, Microsoft’s entry-level Azure certification. It covers cloud concepts, core Azure services, and management and governance tools. It is not required for other Azure certifications, the price depends on your country, and Microsoft Learn has free training for it.
How do I cancel an Azure subscription?
In the Azure portal, open Cost Management + Billing, select Subscriptions, choose the subscription, then select Cancel and Cancel subscription. Billing stops right away and your services are switched off. Microsoft keeps your data for 30 to 90 days before deleting it, so download anything you need first.

Support and Community

More Windows software guides: Azure PowerShell · Azure Monitor · Azure Machine Learning · Reducing Azure Costs · Best Azure Books · Azure AI Search · Azure Mandatory MFA · Azure Migration Tools


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