Have you ever wondered what fuels the fantastic advancements in artificial intelligence (AI) that are transforming our world? From self-driving cars to intelligent virtual assistants, the magic behind these innovations lies in more than just intelligent algorithms. Immense computing power makes it all possible.
In this blog, we will delve into the crucial role of computing power in AI development. We’ll spotlight how Azure AI and Azure Compute Services lead the charge. We’ll explore how Microsoft’s powerful tools enable researchers and businesses to push AI boundaries. So, buckle up and join us on this exciting journey into the heart of modern technology and discover how Azure is powering the future of AI!
What is Azure AI?
Azure AI is a collection of powerful tools and services offered by Microsoft Azure. Created to help developers and data scientists quickly build, launch, and manage AI applications.
Key features include Azure Machine Learning, Azure Cognitive Services, and Azure Applied AI Services. These tools support various AI tasks like machine learning, understanding natural language, and interpreting images. Azure AI makes it straightforward to develop and deploy advanced AI solutions.
Why Choose Azure AI:
Azure AI is a collection of powerful tools and services offered by Microsoft Azure. Created to help developers and data scientists quickly build, launch, and manage AI applications.
Key features include Azure Machine Learning, Azure Cognitive Services, and Azure Applied AI Services. These tools support various AI tasks like machine learning, understanding natural language, and interpreting images. Azure AI makes it straightforward to develop and deploy advanced AI solutions.
Why Choose Azure AI:
Easy to use: User-friendly interfaces and drag-and-drop features make it accessible for businesses without extensive AI expertise.
Cloud-based: Utilize Azure’s cloud infrastructure for data management, model training, and AI deployment with minimal upfront costs.
Scalable and secure: Azure AI services offer scalability and robust security, allowing businesses to adapt and ensure data privacy.
The Importance of Computing Power in AI
AI and cloud computing are best friends now because they thrive on automation. AI takes care of simple tasks, boosting efficiency so that you can focus more on creative and innovative projects. Meanwhile, cloud offers the perfect setup for AI applications. It provides the necessary computing power, storage, and scalability to manage the massive data algorithms needed.
Due to investments in cloud technology, AI adoption has surged. According to a Deloitte study (2019), 70% of companies acquire their AI capabilities through cloud-based software, and 65% develop AI applications using cloud services. Leading cloud providers like AWS and Azure offer many AI algorithms, significantly facilitating businesses’ access to AI technology.
Overall, computing power is the backbone of practical AI applications, enabling them to process data, run algorithms, train models, and deliver real-time results efficiently and accurately.
Azure Compute Services
Azure Compute Services are essential cloud tools that let you deploy and manage workloads on Microsoft Azure. They provide the infrastructure, tools, and platforms needed for computing and storage and are the foundation for any cloud solution.
These services harness the power of the Microsoft Azure portal to offer scalable, secure, reliable, and cost-effective cloud computing. They make deploying and managing applications and workloads in the cloud easy.
Some popular Azure Compute Services include:
Azure Virtual Machines
Azure Container Instances
Azure App Service
Azure Functions (serverless computing)
Networking
Database services
Azure Kubernetes Services (AKS)
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In conclusion, Azure AI is a powerful suite of AI-driven tools and services designed to empower businesses with innovative AI capabilities. With Azure AI, companies can develop intelligent applications, harness big data, and create personalized customer experiences. The platform offers customizable models and pre-built AI solutions for quick and efficient application deployment.
ECF Data is a proud Microsoft Solutions partner. We provide a wide range of Azure AI solutions tailored to businesses of all sizes. Our team of experts can help you select the right tools and services to meet your specific needs, explain Azure AI pricing, develop custom AI solutions, and seamlessly integrate Azure AI into your existing systems. We also offer ongoing support to ensure your AI applications perform optimally.
As Microsoft keeps pushing the boundaries of its cloud offerings, the renaming of Azure AD is a big deal. In case you missed the memo, here’s the scoop: Azure AD is now known as Microsoft Entra ID.
If you’ve been using Microsoft products for a while, you’re used to these changes by now. Microsoft has a habit of giving its tools new names: Microsoft Flow became Power Automate, Windows Virtual Desktop is now, Azure Virtual Desktop and Phone System was renamed Teams Phone. The list goes on, but that’s just Microsoft being Microsoft!
In this blog, we’ll delve into this makeover, features, and the cost of Azure AD.
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Table of Contents
What is Microsoft Entra ID/ Azure AD?
Microsoft Entra ID is a cloud-based service for identity and access management. It consists of a database storing user details and permissions. Formerly, Azure AD provided services for authenticating and authorizing employees, allowing them to have secure access to approved IT resources. These resources include internal assets like intranet data and tools, as well as external ones like Microsoft 365 and various SaaS applications.
Microsoft Entra ID is not just a cloud-hosted version of AD. Instead, it’s a unique solution integrated into the Microsoft Entra ID cloud platform. Moreover, on-premises Active Directory can coexist with Entra ID, creating hybrid AD environments.
In plain language, Entra ID makes it easy for your company’s employees to securely access resources on different platforms, which is essential for keeping your organization safe.
What are the Features of Entra ID/Azure AD?
Access Management
Microsoft Entra ID offers safe and effortless application access from any location or device. Functionalities like Single Sign-On (SSO) and Multi-Factor Authentication (MFA) safeguard your resources by allowing only authorized users to log in.
Identity Protection
Microsoft Entra ID stands out for its robust identity protection functionalities. By leveraging sophisticated machine learning algorithms, it identifies possible identity-related risks and implements risk-based Conditional Access rules to address them. This proactive approach shields your organization from unauthorized login activities, thus ensuring the security of your confidential information.
Identity Governance
Microsoft Entra ID efficiently and securely oversees digital identities with its identity governance functionalities. It verifies individuals’ appropriate access to specific resources, offers detailed visibility into access behaviors, and helps to quickly spot issues for fast action.
Privileged Managed Identities
Microsoft Entra ID enhances your authority over administrative duties and assets. These tools enable you to oversee, regulate, and supervise access to critical resources within your organization, minimizing security threats.
B2B and B2C Identity Services
Microsoft Entra ID caters to more than just internal users. It also provides identity services for business-to-business (B2B) and business-to-customer (B2C) scenarios. These services enable you to securely distribute your applications to partners and customers, ensuring controlled access permissions.
Microsoft Entra ID / Azure AD Pricing
The chosen service plan determines Microsoft Entra or Azure AD’s cost. It follows a monthly per-user charging structure. Below is a summary of the AD Azure pricing for 2023:
Azure Active Directory Domain Services
Azure AD Domain Services pricing (Azure AD DS pricing) is based per hour and is determined by the SKU chosen by the tenant owner.
Service Plan Names
Since October 1, 2023, Azure AD has been renamed Microsoft Entra ID. The new service plans are Microsoft Entra ID Free, Microsoft Entra ID P1, and Microsoft Entra ID P2. Nevertheless, the functionalities in the existing Azure AD plans remain unchanged.
Starting Price
Different plans have varying starting price points. Microsoft enhances affordability by offering a free plan for Microsoft Entra ID. To fully understand the available plans, let’s delve into the details of each one below.
Microsoft Entra ID Service Plans
Like the solution name, the pricing plans of Azure AD underwent through a name change.
Azure AD Free -> Microsoft Entra ID Free
Azure AD Premium Plan 1 (included in Microsoft 365 E3) -> Microsoft Entra ID Plan 1 (included in Microsoft 365 E3)
Azure AD Premium Plan 2 (included in Microsoft 365 E5) -> Microsoft Entra ID Plan 2 (included in Microsoft 365 E5)
Azure Active Directory Premium P1 for government -> Microsoft Entra ID P1 for government
If you’re an Azure AD user, it’s important to note that the inclusions on these service plans did not change, only the names. Now, let’s discuss each service plan.
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Because of the rise of AI, businesses are increasingly turning to cloud platforms to harness the power of AI technologies. Among the frontrunners in this domain is Microsoft Azure. It offers a comprehensive suite of AI services that cater to diverse business needs. As businesses start using Azure AI in their operations, understanding the pricing can be a puzzling challenge.
This blog post delves into the intricate world of Azure AI Pricing. From understanding the various pricing models to navigating the plethora of AI service models available, we aim to equip you with the knowledge needed to optimize your investment in Azure.
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Artificial Intelligence (AI)
OpenAI on Microsoft Azure brings powerful AI models into your Azure environment, like GPT-3 and ChatGPT. This integration allows you to run models in the same region as your production code. It enhances performance and maintains data security.
Why choose OpenAI on Azure?
It leverages Azure’s robust infrastructure, aligning with familiar tools for developers and benefiting from Microsoft’s scalability and global data center network.
Explore Azure Open AI Pricing Options
Like Azure’s services, such as Azure Cognitive Services for AI, Azure OpenAI’s cost operates on a pay-as-you-go consumption approach. It ensures you pay solely for the resources you utilize. The price per unit is determined by the model’s type and size and the quantity of tokens employed in both input and output.
GPT-3.5 models
The current gpt-3.5-turbo has a 4,096-token limit, while the newer gpt-3.5-turbo-16k has a 16,384-token limit. Both are priced at $0.002 per 1,000 tokens for prompts or completions.
GPT-4 models
GPT-4 models come in two versions: the GPT -4 model, which has an 8,192 token limit, and the GPT-4 32k, which has a 32,768 token limit.
The GPT-4 model in prompt mode costs $0.03 for an 8K context and $0.06 for a 32K context per 1,000 tokens. In completion mode, the prices are $0.06 for an 8K context and $0.12 for a 32K context per 1,000 tokens.
How words are divided into tokens depends on the language. For instance, the phrase ‘Cómo estás’ (‘How are you’ in Spanish) consists of 5 tokens (covering 10 characters). The higher ratio of tokens to characters can increase the cost of using the API for languages other than English.
To explore tokenization further, you can utilize our interactive Tokenizer tool to calculate token numbers and observe how text is segmented. If you prefer programmatically tokenizing text, consider using Tiktoken, a rapid BPE tokenizer designed for OpenAI models. Other libraries, like the transformers package for Python or the GPT-3 encoder package for node.js, are also worth exploring.
Depending on the chosen model, requests can use up to 4,097 tokens shared between prompts and completions. If your prompt uses 4,000 tokens, your completion can have a maximum of 97 tokens.
Fine-tuned model
You can only fine-tune GPT-3 models (Ada, curie, DaVinci, Babbage), collectively known as “base” models.
According to Microsoft Learn, the charges for Azure OpenAI fine-tuned models depend on three factors:
- Training hours
- Hosting hours
- Inference per 1,000 tokens
Consider the hosting hours cost carefully. Once a fine-tuned model is deployed, it accumulates an hourly cost, regardless of its active usage. Monitoring the costs of fine-tuned models is essential.
*** Currently, Azure OpenAI Service does not support fine-tuned models.
Embedding model
Azure OpenAI Service provides an embedding model alongside image and large language models. The standard embedding model, Ada, costs $0.0001 per 1,000 tokens.
DALL-E
Azure OpenAI Service, including image models, operates with pricing determined by the number of images processed, making it relevant for those exploring “Azure OpenAI Service pricing.” The standard image model, DALL-E, costs $2 for every 100 images.
Navigate Azure OpenAI Pricing with Expert Guidance
Azure OpenAI is a powerful tool for businesses, integrating seamlessly with Azure for advanced AI capabilities. It automates processes like natural language processing and image recognition, enhancing efficiency. This collaboration between Microsoft and OpenAI has proven impactful globally. Businesses can leverage these advances to automate tasks, improve operations, and unleash limitless potential!
We have investigated the prices for each service, and this page will be regularly updated with the latest information. Feel free to reach out if you have questions or need clarification on using Azure OpenAI services, including their use cases. Additionally, don’t hesitate to contact us for pricing details on specific services mentioned in this blog.