AWS Partner Webcast - Advanced Strategies for AWS Cost Allocation with Tags and Linked Accounts

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-

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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.

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AWS cost

allocation in your

company

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@cloudability

What's your primary driver

for doing Cost Allocation?

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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

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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

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@cloudability

Tools for splitting

costs

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@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

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@cloudability

#2: Linked Accounts

Use linked accounts to split up things that really matter

Tools for splitting costs

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@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

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@cloudability

Developing your

plan

@cloudability First, get everyone involved

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@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

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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?

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@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

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@cloudability

Be sure to map duplicate keys

Understanding tags

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Reserved Instance Pricing

Components

Tag everything you can

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@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

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Building cost reports

(demo)

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@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

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Questions

Contacts: Cloudability Info: https://cloudability.com/contact/ AWS Contact: aws.amazon.com/contact-us

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