Is this one way to reduce the backup cost for sql managed instance?

Question

Is this one way to reduce the backup cost for sql managed instance?

Tan-9136 120

Hi everyone,

We were told that to reduce SQL managed instance backup cost is by having the storage size about 3 times of the storage was used to ensure the storage utilization is not above 31%.
For example if the storage used is 115 GB then we should set the storage space to 384 GB,

We just want to get another confirmation if this recommendation is actually valid or not.

Thank you

Mahesh Kurva 6,850 Reputation points Microsoft External Staff Moderator

2025-08-11T19:55:11.8133333+00:00
Hi Tan-9136 ,

Greetings!!

We just want to get another confirmation if this recommendation is actually valid or not.

To confirm, Azure SQL Managed Instance includes free backup storage equal to the provisioned data storage size. Any backup storage consumed beyond that is charged separately.

The guideline you received about setting the provisioned storage to around three times the utilized data size (e.g., 384 GB for 115 GB used) is a common cost-optimization strategy. The goal is to maintain low storage utilization, which can help reduce the size of differential backups, ultimately lowering total backup storage costs.

Free Backup Storage: You are not charged for backup storage up to the size of your data storage. For example, if you provision 384 GB, that amount of backup storage would be free as long as your data does not exceed it.

Backup Policy Adjustments: When managing backup costs, consider adjusting the retention policies and frequency of backups. This may also impact storage utilization.

Monitoring Usage: Make sure to monitor the actual backup usage regularly to adjust your provisioning as needed. If your used storage consistently remains below 31% of your provisioned space, then you’re correctly minimizing excess costs.

For more information, please refer the document: https://learn.microsoft.com/en-us/azure/azure-sql/managed-instance/automated-backups-overview?view=azuresql#backup-storage-costs

I hope this information helps. Please do let us know if you have any further queries.

Your answer

Mahesh Kurva 6,850 Reputation points Microsoft External Staff Moderator

2025-08-11T19:55:11.8133333+00:00

Hi Tan-9136 ,

Greetings!!

We just want to get another confirmation if this recommendation is actually valid or not.

To confirm, Azure SQL Managed Instance includes free backup storage equal to the provisioned data storage size. Any backup storage consumed beyond that is charged separately.

The guideline you received about setting the provisioned storage to around three times the utilized data size (e.g., 384 GB for 115 GB used) is a common cost-optimization strategy. The goal is to maintain low storage utilization, which can help reduce the size of differential backups, ultimately lowering total backup storage costs.

Free Backup Storage: You are not charged for backup storage up to the size of your data storage. For example, if you provision 384 GB, that amount of backup storage would be free as long as your data does not exceed it.

Backup Policy Adjustments: When managing backup costs, consider adjusting the retention policies and frequency of backups. This may also impact storage utilization.

Monitoring Usage: Make sure to monitor the actual backup usage regularly to adjust your provisioning as needed. If your used storage consistently remains below 31% of your provisioned space, then you’re correctly minimizing excess costs.

For more information, please refer the document: https://learn.microsoft.com/en-us/azure/azure-sql/managed-instance/automated-backups-overview?view=azuresql#backup-storage-costs

I hope this information helps. Please do let us know if you have any further queries.

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Is this one way to reduce the backup cost for sql managed instance?

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