Quick Answer
The answer is to enable auto-shutdown on the VM. This is the most direct built-in cost optimization because auto-shutdown automatically stops the virtual machine at a scheduled time, eliminating compute costs—which are billed per second while the VM is running—during non-business hours like evenings and weekends. For the AZ-104 exam, this question tests your understanding of native Azure cost management features versus more complex solutions like scaling sets or automation accounts; a common trap is overthinking and choosing a solution that requires additional infrastructure when a simple, built-in toggle exists on the VM blade. Remember that for a development VM with a predictable usage schedule, auto-shutdown is the quickest way to reduce compute cost without manual intervention. Memory tip: think “set it and forget it” for dev VMs—auto-shutdown stops the meter when you stop working.
This AZ-104 practice question tests your understanding of deploy and manage azure compute. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
You need to reduce compute cost for a development virtual machine that is used only during business hours on weekdays. Which option provides the most direct built-in cost optimization?
Place the VM in an availability set.
Why wrong: Availability sets improve fault tolerance, not cost optimization.
Enable auto-shutdown on the VM.
Auto-shutdown stops the VM on a schedule and directly reduces unnecessary runtime cost.
Convert the OS disk to premium SSD v2.
Why wrong: That may improve performance but does not directly reduce compute cost.
Create a site-to-site VPN.
Why wrong: A VPN is unrelated to VM runtime cost.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Enable auto-shutdown on the VM.
B is correct because enabling auto-shutdown on the VM directly stops the VM during non-business hours (e.g., evenings and weekends), eliminating compute costs (which are billed per second while the VM is running). This is a built-in Azure feature that requires no additional infrastructure or manual intervention, making it the most direct cost-optimization method for a development VM with a predictable usage schedule.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Place the VM in an availability set.
Why it's wrong here
Availability sets improve fault tolerance, not cost optimization.
Enable auto-shutdown on the VM.
Why this is correct
Auto-shutdown stops the VM on a schedule and directly reduces unnecessary runtime cost.
Related concept
Read the scenario before looking for a memorised answer.
Convert the OS disk to premium SSD v2.
Why it's wrong here
That may improve performance but does not directly reduce compute cost.
Create a site-to-site VPN.
Common exam traps
The trap here is that candidates may confuse high-availability features (availability sets) or connectivity features (VPN) with cost optimization, or mistakenly think upgrading to premium storage reduces costs, when in fact the most direct built-in method for compute cost reduction is stopping the VM during idle periods via auto-shutdown.
Detailed technical explanation
Auto-shutdown uses Azure Resource Manager (ARM) to deallocate the VM, which releases the underlying hardware resources and stops compute billing; only storage costs for the OS disk and data disks persist. The feature can be configured with a time zone and optional notification (via webhook or email) to warn users before shutdown. In a real-world scenario, combining auto-shutdown with Azure Dev/Test Labs or a scheduled start/stop automation (e.g., using Azure Automation or Logic Apps) can further optimize costs for non-production environments.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
What to study next
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FAQ
Deploy and Manage Azure Compute — This question tests Deploy and Manage Azure Compute — Read the scenario before looking for a memorised answer..
The correct answer is: Enable auto-shutdown on the VM. — B is correct because enabling auto-shutdown on the VM directly stops the VM during non-business hours (e.g., evenings and weekends), eliminating compute costs (which are billed per second while the VM is running). This is a built-in Azure feature that requires no additional infrastructure or manual intervention, making it the most direct cost-optimization method for a development VM with a predictable usage schedule.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
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