What does the term mean SKU in the context of Azure?

In the context of Azure, the answer for what is sku in Azure is that SKU refers to the “Stock Keeping Unit”. It is a unique identifier that is used in assigning to a product or service for determining the differences between a wide range of features and offerings within Azure. Thus, SKU is mainly used in defining the different configurations and features that are available in Azure.

For instance, consider a scenario where you are working on creating an Azure task and you need to specify and determine the performance level, features, and pricing tier. In this scenario, the SKU would assist you. Here is the example given to showcase how you as a user can utilize SKU in terms of the command line interface of Azure when creating virtual machines:-

Az vm create 
    --resource-group MyResourceGroup 
    --name MyVM 
    --image UbuntuLTS 
    --size Standard_DS1_v2 
    --admin-username azureuser 
    --generate-ssh-keys

In this command structure, the “—size” parameter refers to the SKU for the virtual machine. In other words, it is here to specify the SKU for the virtual machines. On the other hand “Standard_FS1_V2” is the indication of the SKU of a particular configuration which includes CPU, memory, and other specifications.