Azure Databricks Workspace Type: Azure Databricks offers two types of workspaces: Standard and Premium. The Standard workspace is suitable for most use cases, while the Premium workspace provides additional features such as enhanced security and advanced clustering. Premium workspaces have higher pricing compared to Standard workspaces.

Virtual Machines (VMs): You can choose the types of virtual machines (VMs) to use in your Azure Databricks cluster. VM pricing varies based on factors like the VM series, size, and location. The VMs are used to run the Apache Spark clusters, and you pay for their compute resources.

Compute and DBU (Databricks Unit): Azure Databricks pricing includes both compute costs and Databricks Unit (DBU) costs. DBUs represent a combination of CPU, memory, and I/O resources used for processing data. The number of DBUs required depends on the VM size and the number of VMs in your cluster.

Data Storage: Azure Databricks uses Azure Data Lake Storage or Azure Blob Storage for data storage. You pay for the storage resources used based on the amount of data stored, and the pricing for storage is separate from Databricks compute costs.

Data Ingestion and Egress: Costs may apply for data ingestion into Azure Databricks and data egress (data transfer out of Databricks). The data transfer costs depend on the volume of data moved and the destination.

Integration with Azure Services: If you use Azure services such as Azure Machine Learning, Azure Data Factory, or Azure Event Hubs with Azure Databricks, additional costs may apply based on your usage of those services.

Azure Databricks Delta Lake: Delta Lake is a powerful feature that enhances data reliability and performance. It may have associated costs, so you should consider your usage when calculating pricing.

Auto Scaling: Azure Databricks offers auto-scaling capabilities, which can help optimize costs by automatically adjusting the number of VMs based on workload demands.

Networking: If you need to set up a Virtual Network (VNet) for secure connectivity or use Azure ExpressRoute for dedicated network connections, there may be additional networking costs.