Fady Anwar

Cutting Azure File Share Costs: Cheaper Azure Alternatives and How To Migrate

Azure File Shares are convenient for SMB or NFS workloads, yet Premium File Shares can become expensive when quota is overprovisioned. This article explains why costs climb, what cheaper Azure services you can switch to, and how to migrate with minimal disruption. References are included after each section.

Why Premium Azure Files can be costly

Premium File Shares in the Provisioned v1 model bill you for the share capacity you provision, regardless of actual usage. IOPS and throughput scale with the provisioned size, so you may end up paying for capacity just to reach a performance target. Standard tiers use a different model with pay as you go for storage plus transactions, which is often cheaper if your workload is not latency sensitive. Provisioned v2 lets you provision storage, IOPS, and throughput independently, which improves cost control compared to v1. [1][2]

  • Provisioned v1: performance is derived from quota, billed on provisioned capacity.
  • Provisioned v2: storage, IOPS, and throughput are set separately, billed by each meter.
  • Standard HDD tiers: pay as you go, lower storage price, transaction charges apply.

References\ [1] Understand Azure Files billing models, including Provisioned v1, Provisioned v2, and pay as you go\ https://learn.microsoft.com/en-us/azure/storage/files/understanding-billing\ [2] Create and manage file shares, including Provisioned v1 and v2 guidance\ https://learn.microsoft.com/en-us/azure/storage/files/storage-how-to-create-file-share

What is cheaper than Azure File Shares

1. Azure Blob Storage object tiers

For many scenarios, Azure Blob Storage provides the lowest total cost. You choose the access tier based on how often you read data.

  • Hot tier: frequent access
  • Cool tier: infrequent access, 30 days minimum retention
  • Cold tier: rarely accessed but online, 90 days minimum retention
  • Archive tier: offline, very low storage cost, 180 days minimum retention, rehydration required before reads

Storage price drops from Hot to Archive, while access and retrieval costs rise for colder tiers. Lifecycle management can move data among tiers automatically. [3][4]

References\ [3] Access tiers overview for Blob Storage, including Hot, Cool, Cold, Archive and retention rules\ https://learn.microsoft.com/en-us/azure/storage/blobs/access-tiers-overview\ [4] Azure Blob Storage pricing overview\ https://azure.microsoft.com/en-us/pricing/details/storage/blobs/

2. Blob Storage with NFS 3.0 support

If you need a mount on Linux, enable hierarchical namespace, then expose the container via NFS 3.0. You keep Blob Storage economics with POSIX‑style access, which suits read heavy and high throughput scenarios. Performance scales with additional clients. Avoid frequent in place overwrites. [5][6]

References\ [5] NFS 3.0 protocol support for Azure Blob Storage\ https://learn.microsoft.com/en-us/azure/storage/blobs/network-file-system-protocol-support\ [6] NFS performance considerations on Blob Storage\ https://docs.azure.cn/en-us/storage/blobs/network-file-system-protocol-support-performance

3. Azure Data Lake Storage Gen2

ADLS Gen2 is Blob Storage with a hierarchical namespace and the same pricing family. Choose it when you need data‑lake semantics and analytics tooling integration while keeping Blob cost characteristics. [7][8]

References\ [7] ADLS Gen2 introduction and pricing alignment with Blob\ https://learn.microsoft.com/en-us/azure/storage/blobs/data-lake-storage-introduction\ [8] Azure Data Lake Storage pricing\ https://azure.microsoft.com/en-us/pricing/details/storage/data-lake/

4. Azure Files Standard tiers

If you must keep SMB or NFS semantics provided by Azure Files, standard HDD tiers are often much cheaper than Premium. You trade lower cost for lower baseline performance and a transaction charge model. [1]

Reference\ [1] Understand Azure Files billing models, including Standard pay as you go\ https://learn.microsoft.com/en-us/azure/storage/files/understanding-billing

5. What to avoid if you want low cost

  • Azure NetApp Files targets low latency and advanced NAS features. It is not a low cost alternative for typical file sharing. [9][10]
  • DIY Windows or Linux file servers on VMs with managed disks often have higher TCO after you include VM cost, patching, storage resiliency, and operations. Microsoft positions Azure Files and Azure File Sync to lower TCO compared to self‑managed servers. [11]

References\ [9] NFS comparison across Blob, Azure Files, and Azure NetApp Files\ https://learn.microsoft.com/en-us/azure/storage/common/nfs-comparison\ [10] Azure Files vs Azure NetApp Files comparison\ https://learn.microsoft.com/en-us/azure/storage/files/storage-files-netapp-comparison\ [11] Replace or extend Windows file servers with Azure Files and Azure File Sync to reduce TCO\ https://learn.microsoft.com/en-us/azure/storage/files/windows-server-to-azure-files

Choosing the right cheaper option

Use this decision flow.

  • If SMB is not required and the workload can be object based\ Choose Blob Storage and select Hot, Cool, Cold, or Archive based on access frequency. Enable lifecycle rules to move cold data to cheaper tiers. [3]
  • If Linux clients need a mount and object storage is acceptable\ Use Blob NFS 3.0 with hierarchical namespace. Expect best value on read heavy workloads with multiple clients. [5][6]
  • If SMB or NFS semantics are required without app refactoring\ Move from Premium to Azure Files Standard. You will get lower cost with HDD tiers, but budget for transaction charges. [1]

Cost mechanics and pitfalls to watch

  • Blob Storage cost model\ Storage price per GiB, plus operation and retrieval costs, plus egress. Minimum retention applies for Cool, Cold, and Archive. Archive is offline and requires rehydration that can take hours. Plan for early deletion fees if you move or delete before the retention minimum. [3][12]
  • Azure Files cost model\ Standard: pay as you go for storage, transactions, and bandwidth. Premium v1: provisioned capacity controls performance and cost. Premium v2: provision storage, IOPS, and throughput independently for better cost control. Reservations can lower cost for predictable capacity. [1][2][13]

References\ [12] Archive tier behavior and early deletion charge\ https://learn.microsoft.com/en-us/azure/storage/blobs/archive-blob\ [13] Save on Azure Files with reservations\ https://learn.microsoft.com/en-us/azure/storage/files/files-reserve-capacity

Migration strategies

A. Premium Azure Files to Standard Azure Files

This option keeps SMB or NFS while reducing cost.

  1. Create a GPv2 storage account if you do not already have one.
  2. Create a Standard tier share, selecting Hot, Transaction Optimized, or Cool.
  3. Copy data using AzCopy or enable Azure File Sync for minimal disruption.
  4. Point applications to the new share and then decommission the Premium share. [1][11]

Reference\ [1] Billing models and supported tiers, plus Standard tiers overview\ https://learn.microsoft.com/en-us/azure/storage/files/understanding-billing

B. Azure Files to Blob Storage object model

This option provides the biggest cost drop when SMB is not required.

  1. Create a storage account and containers.
  2. Use AzCopy to migrate data.
  3. Update applications to use the Blob SDK, REST API, SFTP, or event driven processing.
  4. Configure lifecycle rules to move data from Hot to Cool or Cold or Archive after inactivity. [3][4]

References\ [3] Access tiers and lifecycle policies\ https://learn.microsoft.com/en-us/azure/storage/blobs/access-tiers-overview\ [4] Blob pricing\ https://azure.microsoft.com/en-us/pricing/details/storage/blobs/

C. Azure Files to Blob Storage with NFS 3.0

This option keeps a mount model for Linux without paying file share prices.

  1. Create a storage account with hierarchical namespace enabled.
  2. Enable NFS 3.0 for the account and container.
  3. Mount the container on Linux clients and copy data.
  4. Validate performance and locking semantics for your workload. [5][6]

References\ [5] NFS 3.0 support for Blob Storage\ https://learn.microsoft.com/en-us/azure/storage/blobs/network-file-system-protocol-support\ [6] NFS performance guidance\ https://docs.azure.cn/en-us/storage/blobs/network-file-system-protocol-support-performance

CLI examples you can reuse

Show the current Azure Files share and find the next allowed quota downgrade time

az storage share-rm show \
  --resource-group <RG> \
  --storage-account <AccountName> \
  --name <ShareName> \
  --query "{quota:properties.shareQuotaGiB, nextAllowedQuotaDowngradeTime:properties.nextAllowedQuotaDowngradeTime}"

The nextAllowedQuotaDowngradeTime value indicates when you can safely reduce quota again. [14][15]

References\ [14] Azure CLI share resource manager reference, including show and update\ https://learn.microsoft.com/uk-ua/cli/azure/storage/share-rm?view=azure-cli-latest\ [15] Property for nextAllowedQuotaDowngradeTime\ https://learn.microsoft.com/en-us/dotnet/api/microsoft.azure.management.storage.models.fileshareproperties.nextallowedquotadowngradetime

Reduce a Premium v1 share quota after the cooldown window

az storage share-rm update \
  --resource-group <RG> \
  --storage-account <AccountName> \
  --name <ShareName> \
  --quota <NewSizeGiB>

In Provisioned v1, lowering quota reduces both performance and cost. In Provisioned v2, you would set quota, IOPS, and throughput independently. [1][2][14]

Cost modeling tips

  • Use the Azure Pricing calculator to estimate Blob Hot, Cool, Cold, and Archive cost for your data volume and access patterns. Include operation counts and egress. [4]
  • Use the Azure Files cost estimation guidance to compare Provisioned v1 versus v2 and to see how right sizing IOPS and throughput can lower TCO. [16]

References\ [4] Blob pricing and calculator\ https://azure.microsoft.com/en-us/pricing/details/storage/blobs/\ [16] Estimate the cost of Azure Files, including v1 versus v2 scenarios\ https://learn.microsoft.com/en-us/azure/storage/files/file-estimate-cost

Summary

  • The cheapest alternatives to Azure Files are usually within Azure Blob Storage. Choose Hot, Cool, Cold, or Archive, and enable lifecycle policies. If you need a Linux mount, consider Blob NFS 3.0. If you must keep SMB or NFS without refactoring, move from Premium to Standard Azure Files. [1][3][5]
  • Provisioned v2 on Azure Files can reduce cost versus v1 by letting you decouple capacity, IOPS, and throughput. For predictable usage, reservations reduce cost further. [1][13][16]
  • Plan migrations with AzCopy or Azure File Sync, validate performance and semantics, and remove the old share only after cutover is complete. [1][11]

References\ [1] Understand Azure Files billing\ https://learn.microsoft.com/en-us/azure/storage/files/understanding-billing\ [3] Blob access tiers overview\ https://learn.microsoft.com/en-us/azure/storage/blobs/access-tiers-overview\ [4] Blob pricing\ https://azure.microsoft.com/en-us/pricing/details/storage/blobs/\ [5] Blob NFS 3.0 protocol support\ https://learn.microsoft.com/en-us/azure/storage/blobs/network-file-system-protocol-support\ [6] NFS performance considerations\ https://docs.azure.cn/en-us/storage/blobs/network-file-system-protocol-support-performance\ [7] ADLS Gen2 introduction and Blob alignment\ https://learn.microsoft.com/en-us/azure/storage/blobs/data-lake-storage-introduction\ [8] ADLS pricing\ https://azure.microsoft.com/en-us/pricing/details/storage/data-lake/\ [9] NFS comparison across services\ https://learn.microsoft.com/en-us/azure/storage/common/nfs-comparison\ [10] Azure Files vs Azure NetApp Files comparison\ https://learn.microsoft.com/en-us/azure/storage/files/storage-files-netapp-comparison\ [11] Replace Windows file servers with Azure Files and Azure File Sync\ https://learn.microsoft.com/en-us/azure/storage/files/windows-server-to-azure-files\ [12] Archive tier details and early deletion\ https://learn.microsoft.com/en-us/azure/storage/blobs/archive-blob\ [13] Reservations for Azure Files\ https://learn.microsoft.com/en-us/azure/storage/files/files-reserve-capacity\ [14] Azure CLI share-rm reference\ https://learn.microsoft.com/uk-ua/cli/azure/storage/share-rm?view=azure-cli-latest\ [15] nextAllowedQuotaDowngradeTime property\ https://learn.microsoft.com/en-us/dotnet/api/microsoft.azure.management.storage.models.fileshareproperties.nextallowedquotadowngradetime\ [16] Estimate the cost of Azure Files, v1 versus v2 examples\ https://learn.microsoft.com/en-us/azure/storage/files/file-estimate-cost

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