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    Top 10 Strategies to Manage Cost and Continuously Optimize AWS - Strategy #8 - Cost Governance Starts with Proactive Cost-Management

    Posted by HyperGrid on Wed, Mar 13,2019 @ 04:50 PM

    This is part 8 of a ten part series, "Top 10 Strategies to Manage Cost and Continuously Optimize AWS," which is excerpt from an eBook by the same name, produced in cooperation from AWS by HyperGrid Cloud Management Platform. A link to download the entire eBook with all 10 strategies is located at the bottom of this post.

    GovernanceCOST GOVERNANCE STARTS WITH PROACTIVE COST-MANAGEMENT

    SITUATION Cost-management is a challenge for all public cloud users; it is not uncommon for cloud spend to grow significantly past initial projections and still be overlooked until it is too late.

    COMPLICATION AWS Billing is a monthly activity; customers who wait until the end of the monthly billing cycle to see their utilization are likely to be surprised, which affects their ability to address problems as they occur. IMPLICATION Customers who rely on the AWS billing cycle are almost guaranteed to be surprised by the bill when it arrives. Proactive cost management is critical to the ability to maintain good cost governance in the cloud.

    POSITION AWS provides numerous mechanisms to manage costs, but unfortunately, many of them are disabled by default and should be enabled as a best practice.

    ACTION

    • Your first step should to be to enable Consolidated Billing and link your accounts to a master “paying” account. This will allow you to see the big picture of spend and create reports that take a holistic view across the organization.
    • You must aggressively use tags (see previous topic) to ensure you have the right level of granularity in the reports. Without this, reporting will be at an account level. In our experience, account-level reporting is not sufficient to draw an accurate picture of spend and trace it back to business initiatives. The AWS Cost and Usage Report (CUR) is generated multiple times daily and contains real-time raw details on each tracked resource. This report contains a wealth of information, but due to its sheer volume of data, we recommend investing in a bill management service that will help you analyze this data in real time.
    • HyperCloud's Bill Management service shows a real-time breakdown of our AWS spend by service and by instance, along with recommendations for optimization. This allows you to react to spending spikes in real time.
    • AWS also provides a native option, AWS Cost Explorer. (This function is disabled by default, so enable it as soon as possible.) AWS Cost Explorer is a visualization tool that helps you view and report on the data contained in the CUR.
    BENEFITS By proactively managing costs, you can start to define and enforce good cloud cost governance. This will increase the accuracy of your short-term spend forecasts and proactively manage any spending spikes in real time.

     

    Webinar - Optimize Cost & Mitigate Risk - 021519

    Sponsored by:
    BrightTalk Logo-1 New Solutions Blue wClouds n tag 480x270 HG Logo-1
    CLICK HERE to see this recorded webinar.
    Greybeard Consulting's President, Chris Gerhardt is featured. Chris talks about how tools like HyperGrid accelerate cloud adoption and streamline IT, while cutting costs and mitigating risk.

    Download the complete, "Top 10 strategies."

    EBOOK-10 Strategies to Continuously Optimize AWS L-O 1           "Top 10 Strategies to Manage Cost and Continuously Optimize AWS"Read all ten tips now. Click for e-Book
     

    Topics: cloud computing, cloud, cloudmanagement