How to go about cost allocation for cloud usage

Different departments throughout the enterprise use cloud resources – both computing and storage – with the expense applied as one cost to the company.

However, it is essential for financial, IT and project managers, as well as MSPs, to accurately distribute these costs among the different cost entities. And though cloud costs can easily reach six figures, most cost allocation methods involve a lot of guesswork:

Assigning Usage to Categories
Tagging resources allow consistent tracking of cloud usage according to specific cloud cost categories. To begin, consider the various categories required by all the stakeholders and then label them accordingly.

Reconciling Tags
When using existing tags, it is common to find inconsistencies. Cloudyn enables validation of all taggable resources to ensure policy conformity going forward.

Allocating Shared & Uncategorized Usage
Tagging is a very simple yet powerful mechanism for categorization. But what of untaggable items such as support and other services? Cloudyn permits allocation of untaggables to cost categories.

AWS RI Pricing
AWS’s RI pricing model has an upfront fee with lower costs for use of the resources. This means that unless proper policies are set up, the unit that purchases the RI will receive all the costs even if others make use of it. It would be more accurate to split the costs among the units that used the RI.

Click here for tips on how to slice/dice your data according to multiple parameters for a true assessment of your cloud costs.