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AWS provides two powerful tools for segmenting and allocating your AWS costs: tags, and linked accounts. But getting the most out of them requires planning, consistency and buy-in from your team. In this webinar, you'll learn proven strategies for separating your resources into multiple linked accounts and assigning tags to your resources. Then you'll see how to use Cloudability to precisely track where your AWS spending is going and provide detailed reporting for the decision-makers who need it. What you’ll learn: • When to use tags vs. linked accounts for cost allocation. • How to create a successful tagging strategy. • How to report and share your costs with the right decision-makers in your organization.
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Advanced Strategies for AWS Cost Allocation with Tags and Linked Accounts
Introducing
Kyle Lichtenberg Solution Architect
Amazon Web Services
J.R. Storment Co-Founder Cloudability
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/UCT-
nPlVzJI-ccQXlxjSvJmw
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
What We’ll Cover
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
@cloudability
@cloudability
Introduction
AWS Cost Allocation
1. Tags and Linked
Accounts
2. Developing your plan
3. Building cost reports
@cloudability
@cloudability
Infrastructure analytics for scaled web businesses and enterprises.
Cloud Infrastructure Analytics
About Us
750M+ in tracked cloud costs. 10,000+ Users
@cloudability
@cloudability
Our Solution
How It Works
1 2 3
4 5
Spend
Management Spending visibility via
monthly forecasts, dash-
board, budget alerts, and
daily email digests.
Cost
Analytics Dig into your
operating costs with
detailed costs by tag,
service, and usage
type.
EC2 Usage
Analytics Spot under-utilized
resources w/ instance
level usage metrics.
RI Purchase
Analytics Understand the exact
combination of Reserved
Instances that will
maximize your savings.
Enterprise
Enablement Organizational group
views/filtering/rollups,
multi-user access.
@cloudability
AWS cost
allocation in your
company
@cloudability
@cloudability
What's your primary driver
for doing Cost Allocation?
@cloudability
The pieces AWS cost allocation at your company
๏ 2 major business units
@cloudability
The pieces AWS cost allocation at your company
๏ 2 major business units
๏ Dozens of products and
cost centers
@cloudability
The pieces AWS cost allocation at your company
๏ 2 major business units
๏ Dozens of products and
cost centers
๏ Dedicated and shared
AWS resources
@cloudability
The pieces AWS cost allocation at your company
๏ 2 major business units
๏ Dozens of products and
cost centers
๏ Dedicated and shared
AWS resources
๏ Distributed teams using
AWS
@cloudability @cloudability
DIFFERENT PEOPLE IN YOUR COMPANY
NEED
TO SEE THOSE AWS RESOURCES
IN DIFFERENT WAYS
@cloudability
The players AWS cost allocation at your company
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
The players AWS cost allocation at your company
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
The players AWS cost allocation at your company
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
@cloudability
Tools for splitting
costs
@cloudability
@cloudability
1. Tags are key value pairs
2. You can apply up to 10 tags per resource
3. Tag keys and values are case sensitive
#1: Tags
Tools for splitting costs
@cloudability
@cloudability
#2: Linked Accounts
Use linked accounts to split up things that really matter
Tools for splitting costs
@cloudability
@cloudability
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
Tools for splitting costs
@cloudability
@cloudability
Developing your
plan
@cloudability First, get everyone involved
@cloudability
@cloudability
Three Rules of AWS Cost
Allocation
Cost Allocation Strategies
1. Focus on reportable dimensions
2. Tag systematically using a
consistent nomenclature
3. Aim to answer questions
@cloudability
@cloudability
Questions to answer
Developing Your Plan
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
Tag Key
Env
Enviornment
enviroment
Environemnt
Environment
Environment
EnvironmentType
Environmnt
Envrionment
Watch out for inconsistency
Tag programmatically to ensure consistency
@cloudability
@cloudability
Be sure to map duplicate keys
Understanding tags
@cloudability
Reserved Instance Pricing
Components
Tag everything you can
@cloudability
@cloudability
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-Cluster-
Node
• Use Cloudformation, Puppet, Chef to automatically
tag
Understanding Tags
@cloudability
@cloudability
Building cost reports
(demo)
@cloudability
@cloudability
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
Cost Allocation
Questions
Contacts: Cloudability Info: https://cloudability.com/contact/ AWS Contact: aws.amazon.com/contact-us
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