How to Setup Azure Tagging System for Managing Costs

Tagging Methodology

A robust tagging system will need to be implemented to make billing and charge/show back possible. Tagging is required for Azure’s Cloudyn reporting tool to function properly. Airnet recommends deploying with less than 12 tags to start so that you have a few left available for critical tags that may be needed in the future as your business evolves.

Recommended Tags

All resources and resource groups in Azure should be tagged with at minimum the following:

  • Application – The name of the application or project.

  • Environment – The lifecycle/environment of the project (DEV, TEST, PROD).

  • Area – The area the resource/resource group supports (DEV, SALES, IT, etc.).

  • Cost Center – The code assigned to the area responsible for paying for the application.

  • Created By or Deployed By – The code assigned to the person (preferable) or department that created the application.

Proposed Tags

Below are the tags we generally propose to a customer to review and add or remove to the above list as it makes sense for their business.


Optional tags


Tag Limitations

  • Each resource or resource group can have a maximum of 15 tag name/value pairs. This limitation applies only to tags directly applied to the resource group or resource.

  • A resource group can contain many resources that each have 15 tag name/value pairs.

  • If you have more than 15 values that you need to associate with a resource, use a JSON string for the tag value. The JSON string can contain many values that are applied to a single tag name.

  • The tag name is limited to 512 characters. For storage accounts the tag name is limited to 128 characters.

  • The tag value is limited to 256 characters.

  • Tags applied to the resource group are not inherited by the resources in that resource group. A powershell command can be executed to perform that function.

  • Tags can't be applied to classic resources such as cloud services.

  • Tag names cannot contain these characters: <, >, %, &, \, ?, /