How to Improve Awareness of Expenditures and Usage with AWS
The fifth pillar of the AWS Well-Architected Framework is cost optimisation, and it’s all about lowering your price point.
Working in the cloud gives you more flexibility and creates more opportunities for innovation. You no longer need to manually research new hardware, purchase new hardware, schedule shipments or process shipping orders. You can create systems to do all of that automatically.
However, the way you monitor expenditures and usages will have to change. Several AWS programs can help you improve your awareness and better monitor your expenses and usage.
Accurate Cost Attribution
You need to know the exact cost of each department or product owner. This knowledge will give you insight into which products are more profitable, and which are losing money.
Use AWS Organisations or AWS Control Tower to separate your teams and products by costs and usage. These programs have several organisational options, including tagging to enable sorting by category, team name, business name or other information.
Cost Attribution Categories
You want to create organisation categories and functional categories to sort your costs.
To determine your organisation categories, meet with your stakeholders and follow your existing organisational structure. You might want to include topics like budget, department, or business unit.
The functional categories might include topics like your workload name, areas of focus in the business (production, shipping, etc.).
There is no limit to the number of categories one item can have. Be as detailed as possible when defining your categories.
Establish Organisational Metrics
You should clearly state what the workload outcomes are. Use business outcomes to determine the metrics. For example, the number of web pages served to customers could be a workload metric.
If your workload is large or complicated, consider breaking your metrics down for each component.
Billing and Cost Management Tools
AWS provides several tools that aid in billing and cost management. Train representatives of each team that works with an application in AWS Budgets and AWS Cost Explorer.
Use Workload Metrics
Using your workload metrics, allocate your costs. You can use Amazon Athena to create an efficiency dashboard, making it easy to evaluate your cost efficiency regularly.
Consult an AWS Partner
If you are new to AWS or want to confirm that you are following all the guidelines, a Well-Architected Review can help. WOLK is an experienced long-term AWS Partner and can check for high-risk items and mitigate them for you to ensure you’re operating as efficiently as possible.