AWS Cost Allocation best practices: How high-growth businesses succeed
4 likes1,719 views
The document discusses best practices for AWS cost allocation, focusing on strategic tagging and linked accounts to enhance cost management for high-growth businesses. It emphasizes the importance of organizing resources by various dimensions to facilitate reporting, identify inefficiencies, and foster a culture of cost saving. Key takeaways include the necessity of consistent nomenclature, extensive tagging, and leveraging technology for enforcement and reporting purposes.
AWS Cost Allocation best practices: How high-growth businesses succeed
- 2. @cloudability AWS Cost Allocation Best Practices: How High-Growth Businesses Succeed February 23rd , 2017
- 3. ๏ @cloudability Introduction Today’s Topics Cass Hodges Technical Account Manager TODAY’S SPEAKER 1. A Story of Growth 2. Allocation Fundamentals 3. Using Tags & Linked Accts 4. Developing your plan 5. Q&A
- 4. $5B+ in tracked AWS costs
- 5. With usage increasing, efficiency is key Development Growth $ Scale
- 6. @cloudability Using Tags And Linked Accounts Here’s a little story all about how… High-growth brings up all kinds of cost management and scaling challenges. Here’s a story from one of our own customers. ๏ International company analyzing data in different languages ๏ AWS power user experiencing intense growth over the years ๏ Growing pains around cloud cost management (trouble saving at scale) ๏ Cloud cost management wasn’t a priority, various billing data sources lumped into massive spreadsheets
- 7. @cloudability Using Tags And Linked Accounts Growing out of the spreadsheet-only method Sorting AWS tagging leads to immediate reporting benefits, but also long-term cost efficiency for our customer. ๏ From“spreadsheet hell”into key cloud cost management reports to get quicker insights ๏ Solving this requires strategic and thorough tagging of resources ๏ Also requires adhering to tagging policies and automation for long-term benefits
- 8. @cloudability Using Tags And Linked Accounts Putting strategic tagging and linked accounts to work High-growth brings up all kinds of cost management and scaling challenges. Here’s a story from one of our own customers. ๏ Retagged all AWS resources by departments, projects and teams ๏ Lowered chargeback time by running existing processes through Cloudability reports ๏ Fostered a culture of cloud cost management to teach the company to save on AWS for the long-term as business grows ๏ Extended visibility into cloud cost management with views for specific non-technical roles
- 9. @cloudability Question: What percentage of your AWS infrastructure is tagged?
- 11. ๏ @cloudability Finding waste You have lots of people that need to see your AWS costs split out lots of different ways ๏ By application ๏ By team ๏ By environment ๏ Across all of your accounts The problem you’re solving
- 12. ๏ @cloudability AWS Cost Allocation At Your Company 12 The Pieces
- 13. ๏ @cloudability AWS Cost Allocation At Your Company 13 The Pieces ๏Multiple major business units
- 14. ๏ @cloudability AWS Cost Allocation At Your Company 14 The Pieces ๏Multiple major business units ๏Dozens of products and cost centers
- 15. ๏ @cloudability AWS Cost Allocation At Your Company 15 The Pieces ๏Multiple major business units ๏Dozens of products and cost centers ๏Dedicated and shared AWS resources
- 16. ๏ @cloudability AWS Cost Allocation At Your Company 16 The Pieces ๏Multiple major business units ๏Dozens of products and cost centers ๏Dedicated and shared AWS resources ๏Distributed teams using AWS
- 17. @cloudability “Different people in your company need to see those AWS resources in different ways.”
- 18. @cloudability AWS Cost Allocation At Your Company The Players Finance needs: ๏Intra-month cost accruals for PO’s ๏Monthly breakdowns of cost by product, shared resource and environment ๏Chargeback costs throughout the organization
- 19. @cloudability AWS Cost Allocation At Your Company The Players Operations needs: ๏Breakdown of team/project AWS spending against budget ๏Alerts when teams/projects could be more efficient ๏Reserved Instance recommendations to lower hourly AWS costs across teams/projects
- 20. @cloudability AWS Cost Allocation At Your Company The Players Engineering/Product needs: ๏Daily breakdown of changing costs by project or revision ๏Their own spending broken down by resources to find inefficiency ๏Automated cost allocation reports for other departments throughout the company
- 21. ๏ @cloudability21 Using Tags & Linked Accounts
- 22. @cloudability Using Tags And Linked Accounts Tags ๏ Tags are key-value pairs (ex. color = blue) ๏ You can apply up to 10 tags per resource ๏ Tags can be anything you want or need
- 23. @cloudability Using Tags And Linked Accounts Tagging: the fine print ๏ Tagging is not retroactive ๏ Tags represent a slice in time ๏ Tagging is case sensitive ๏ Enforce tagging with technology, not just policy
- 24. @cloudability Using Tags And Linked Accounts Linked Accounts Use linked accounts to split up things that really matter
- 25. @cloudability Using Tags And Linked Accounts Tags Vs. Linked Accounts ๏ Tags are highly flexible but 100% coverage is difficult due to compliance ๏ Linked accounts offer clean chargeback but limit reporting options ๏ Solution: Use Both with linked account splitting out most important divisions
- 26. ๏ @cloudability26 Laying the groundwork
- 28. @cloudability Using Tags And Linked Accounts Where to start? ๏ Focus on 3-5 required dimensions ๏ Develop a consistent nomenclature ๏ Aim to answer questions
- 29. @cloudability Using Tags And Linked Accounts Answer questions ๏ What business unit of the organization should this be charged to? ๏ Which cost centers are driving my costs up or down? ๏ How much does it cost to operate the product I’m responsible for? ๏ Are there unused resources in my dev/test environments?
- 30. @cloudability Using Tags And Linked Accounts Focus on Dimension ๏ Which business unit of the organization should this be charged to? ๏ Which cost centers are driving my costs up or down? ๏ How much does it cost to operate the product I’m responsible for? ๏ Are there unused resources my dev/test environments?
- 31. @cloudability Using Tags And Linked Accounts Maintaining consistency Tag Key Env Enviornment enviroment Environemnt Environment Environment EnvironmentType Environmnt Envrionment Tag programmatically to ensure consistency
- 32. @cloudability Using Tags And Linked Accounts Maintaining consistency Be sure to map together duplicate keys
- 33. @cloudability Using Tags And Linked Accounts Maintaining consistency Tag everything you can
- 34. Cost Allocation Where to start tagging By tagging these three, you get a lot more than you might expect: 1. Tag Instances = Compute + Data Transfer 2. Tag EBS Volumes = Volume Storage + Data Transfer + PIOPS 3. Tag S3 Buckets = Bucket Storage + Data Transfer
- 35. @cloudability Using Tags And Linked Accounts Use the Name tag for everything Use the same Name tag value across multiple resources to roll-up costs into a single line-item ๏ Tag RDS DB instances, snapshots, replicas, etc. ๏ With resource ID, naming is still important, as it describes what you are looking at. Pro-tip: Concatenate Name Tag = Service-Role-Node
- 36. @cloudability Question: How many of you have a tagging strategy in place?
- 38. @cloudability Reporting & Automation It’s all about dimensions keys
- 39. @cloudability Reporting & Automation It’s all about dimensions key value
- 40. @cloudability Reporting & Automation Lets go back to our questions ๏ What business unit of the organization should this be charged to? ๏ Which cost centers are driving my costs up or down? ๏ How much does it cost to operate the product I’m responsible for? ๏ Are there unused resources in my dev/test environments?
- 41. @cloudability Reporting & Automation What business unit should this be charged to?
- 42. @cloudability Reporting & Automation Which cost centers are driving my costs up or down?
- 43. @cloudability Reporting & Automation Which cost centers are driving my costs up or down?
- 44. @cloudability Reporting & Automation How much does it cost to operate the product I’m responsible for?
- 45. @cloudability Reporting & Automation How much does it cost to operate the product I’m responsible for?
- 46. @cloudability Reporting & Automation Are there unused resources in my dev/test environments?
- 47. @cloudability Reporting & Automation Are there unused resources in our dev/test environments?
- 48. @cloudability Reporting & Automation The cost of untagged resources
- 49. @cloudability Reporting & Automation Yeah, but what is actually untagged
- 50. @cloudability Reporting & Automation Finding Untagged resources with new Dimensions ๏ Resource ID adds a valuable level of granularity, and allows you to tag by expense of assets.
- 51. @cloudability Reporting & Automation Identify costs of specific storage engine costs
- 52. @cloudability Reporting & Automation Individual untagged EBS Volumes
- 53. ๏ @cloudability Reporting & Automation 53 Create user-specific dashboards to keep allocated data top-of-mind Taking it further
- 54. ๏ @cloudability Reporting & Automation 54 Taking it further Share reports with other users in Finance, Ops, and Engineering
- 55. @cloudability AWS Cost Allocation Takeaways ๏ Use consistent nomenclature that answers specific questions ๏ Tag everything you can, and use linked accounts liberally ๏ Enforce tagging via technology like Cloudformation, Puppet, or Chef ๏ Use the Name tag for everything you can ๏ Use resource analytics to discover untagged resources. ๏ Share the reports with more than just finance
- 56. @cloudability Last Question: How many of you are going to reevaluate how you tag your AWS resources?
- 57. @cloudability Thank you! Try Cloudability free Learn more Questions cloudability.com blog.cloudability.com demo@cloudability.com
- 58. @cloudability