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docs(azure): decide Standard + NAP over AKS Automatic - #21

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Garinlu wants to merge 6 commits into
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Garinlu wants to merge 6 commits into
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docs/azure-cluster-mode

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@Garinlu Garinlu commented Sep 14, 2026

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Summary

  • State-of-the-art for the Azure sprint's first ticket: AKS Automatic vs Standard, and where Node Auto-Provisioning fits.
  • Decision: AKS Standard + Node Auto-Provisioning (managed).
  • Automatic's per-vCPU surcharge is a fixed $/vCPU/h, not a percentage of the node's actual price. Spot's own discount stays intact (still ~81.5% off On-Demand) — but the tax on top of it doesn't shrink with it, so it costs +17.5% on On-Demand and nearly as much as the Spot VM itself, +94.7%.
  • Against that, Automatic's case narrows to a pod-readiness SLA and not having to pick an upgrade channel or policy mode — not enough to justify a tax this disproportionate. NAP itself is unaffected: same engine, opt-in and explicit on Standard instead of preconfigured.
  • NAP carries no separate Azure charge on Standard — only the Automatic product has a per-category compute surcharge in the retail price list. Node price is identical to running Karpenter self-hosted; NAP's advantage is operational, not a lower bill.

Test plan

  • Doc-only change — no code to test.
  • Reviewed for the fixed section order and sourcing rules used across docs/aws/ and docs/gcp/.

Automatic already defaults to Cilium and only locks the system node
pool, not workload nodes — the CNI conflict that ruled out EKS Auto
Mode doesn't exist here. The measured cost is a permanent +17.5% per
vCPU-hour on top of a flat control-plane delta, weighed against SLA
and day-2 ops the factory would otherwise own.

Co-Authored-By: Claude Sonnet 5 <noreply@anthropic.com>
The per-vCPU surcharge isn't a percentage of what the node costs, it's
a fixed dollar amount — so it barely registers against On-Demand
(+17.5%) but nearly doubles Spot (+94.7%), since the same fixed tax
lands on a much smaller base price. Against that, Automatic's own
case narrows to a pod-readiness SLA and not having to pick an upgrade
channel — not enough to keep paying a tax that erases most of the
reason to use Spot in the first place. NAP itself is unaffected: same
engine, opt-in and explicit on Standard instead of preconfigured.

Co-Authored-By: Claude Sonnet 5 <noreply@anthropic.com>
@Garinlu Garinlu changed the title docs(azure): decide AKS Automatic over Standard + NAP docs(azure): decide Standard + NAP over AKS Automatic Sep 15, 2026
Automatic's tax doesn't erase Spot's savings on compute — that discount
stays intact. What's actually true: the tax itself is fixed, so it
doesn't shrink with Spot the way the compute price does, and ends up
costing nearly as much as the Spot VM it's added to.

Co-Authored-By: Claude Sonnet 5 <noreply@anthropic.com>
@Garinlu
Garinlu marked this pull request as ready for review September 15, 2026 08:04
UlysseCarpentier and others added 3 commits September 15, 2026 10:50
A reviewer question surfaced this as worth stating explicitly rather
than leaving implicit: verified against the retail price list that the
per-category compute surcharge only exists under the Automatic
product, not Standard — so NAP costs the same as running Karpenter
self-hosted, it just removes the operational burden.

Co-Authored-By: Claude Sonnet 5 <noreply@anthropic.com>
Co-Authored-By: Claude Sonnet 5 <noreply@anthropic.com>
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