Published on February 27, 2014
Advanced Strategies for AWS Cost Allocation with Tags and Linked Accounts
Introducing J.R. Storment Kyle Lichtenberg Co-Founder Cloudability Solution Architect Amazon Web Services
Webinar Overview Submit Your Questions using the Q&A tool. A copy of today’s presentation will be made available on: AWS SlideShare Channel@ http://www.slideshare.net/AmazonWebServices/ AWS Webinar Channel on YouTube@ http://www.youtube.com/channel/UCTnPlVzJI-ccQXlxjSvJmw
What We’ll Cover Overview of AWS Tags and Linked Accounts Strategies for: Using tags vs. linked accounts for cost allocation Creating a successful tagging strategy Reporting and sharing your costs with the right decision-makers in your organization Q&A
Value of AWS • Lower Total Cost of IT – Economies of scale – High volume, low margin business is in our DNA – Constant price reductions
Value of AWS • Agility – Start infrastructure in seconds – Experiment often with low cost risk – Pay only for what you use
Manage the Costs • Tagging – User definable key-value tags for EC2 resources – Tags are visible on your AWS bill • Linked Accounts – Tie multiple accounts to a single payer – Share Reserved Instances
Completing the Solution • Managing/Enforcing tags • Reporting on tags in a meaningful way • Know when to use linked accounts
Introduction AWS Cost Allocation 1. Tags and Linked Accounts 2. Developing your plan 3. Building cost reports @cloudability @cloudability
About Us Cloud Infrastructure Analytics Infrastructure analytics for scaled web businesses and enterprises. 750M+ in tracked cloud costs. 10,000+ Users @cloudability @cloudability
How It Works Our Solution 1 4 Spend Management Spending visibility via monthly forecasts, dashboard, budget alerts, and daily email digests. RI Purchase Analytics Understand the exact combination of Reserved Instances that will maximize your savings. 2 Cost Analytics 5 Enterprise Enablement Dig into your operating costs with detailed costs by tag, service, and usage type. 3 EC2 Usage Analytics Spot under-utilized resources w/ instance level usage metrics. Organizational group views/filtering/rollups, multi-user access. @cloudability @cloudability
AWS cost allocation in your company @cloudability
What's your primary driver for doing Cost Allocation? @cloudability @cloudability
AWS cost allocation at your company The pieces ๏ 2 major business units @cloudability
AWS cost allocation at your company The pieces ๏ ๏ 2 major business units Dozens of products and cost centers @cloudability
AWS cost allocation at your company The pieces ๏ ๏ ๏ 2 major business units Dozens of products and cost centers Dedicated and shared AWS resources @cloudability
AWS cost allocation at your company The pieces ๏ ๏ ๏ ๏ 2 major business units Dozens of products and cost centers Dedicated and shared AWS resources Distributed teams using AWS @cloudability
DIFFERENT PEOPLE IN YOUR COMPANY NEED TO SEE THOSE AWS RESOURCES IN DIFFERENT WAYS @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 @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 @cloudability
AWS cost allocation at your company The players Engineering 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 @cloudability
Tools for splitting costs @cloudability @cloudability
Tools for splitting costs #1: Tags 1. Tags are key value pairs 2. You can apply up to 10 tags per resource 3. Tag keys and values are case sensitive @cloudability @cloudability
Tools for splitting costs #2: Linked Accounts Use linked accounts to split up things that really matter @cloudability @cloudability
Tools for splitting costs 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 @cloudability @cloudability
Developing your plan @cloudability @cloudability
First, get everyone involved @cloudability
Cost Allocation Strategies Three Rules of AWS Cost Allocation 1. Focus on reportable dimensions 2. Tag systematically using a consistent nomenclature 3. Aim to answer questions @cloudability @cloudability
Developing Your Plan Questions to answer 1. What cost centers are affecting the bottom line? 2. What business unit of the organization does this spending fall under? 3. How does it cost to operate each of my products? 4. How do version changes to my architecture impact cost? 5. Are we leaving things on or over-provisioning for our staging, test or dev environments? @cloudability @cloudability
Tools for splitting costs Watch out for inconsistency Tag Key Env Enviornment enviroment Environemnt Environment Environment EnvironmentType Environmnt Envrionment Tag programmatically to ensure consistency @cloudability @cloudability
Understanding tags Be sure to map duplicate keys @cloudability @cloudability
Reserved Instance Pricing Components Tag everything you can @cloudability
Understanding Tags Use Name tag for everything • Tag S3 buckets with Name to track bandwidth • Tag EBS Volumes with instance Name to get total compute costs • Tag RDS DB instances, snapshots, replicas, etc. • Concatenate Name Tag = Service-Role-ClusterNode • Use Cloudformation, Puppet, Chef to automatically tag @cloudability @cloudability
Building cost reports (demo) @cloudability @cloudability
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 • Share the reports with more than just finance @cloudability @cloudability
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