Implement an account structure

Establishing a well-defined account structure is crucial for effective governance of cloud resource usage. It allows organizations to allocate costs more accurately, gain insights into spending patterns, and helps to enforce policies that ensure financial accountability as innovation continues.

Best Practices

Establish a Clear Account Structure

• Define a multi-account strategy that aligns with your organization’s business units or projects.
• Use AWS Organizations to create accounts for different departments, projects, or environments (e.g., production, development).
• Implement Service Control Policies (SCPs) to enforce governance over what actions can be performed within each account.
• Maintain a centralized billing account to aggregate costs, making it easier to track and manage expenses across all accounts.
• Regularly review and analyze account usage and costs to identify areas for cost savings and optimization.

Questions to ask your team

• How many AWS accounts does your organization currently have?
• Are there specific accounts designated for different teams or projects?
• How do you classify and label accounts to track expenses effectively?
• What policies are in place to govern the creation and deletion of accounts?
• How do you ensure that spending is tracked across all accounts in your organization?
• Are there automated tools in place to monitor costs across the account structure?
• How frequently do you review the account structure for cost allocation purposes?
• Do different departments have established budgets tied to their respective accounts?
• What measures are taken to prevent unauthorized account usage and the associated costs?

Who should be doing this?

Cloud Financial Manager

• Oversee the implementation of the account structure
• Develop policies for cost allocation and management
• Monitor compliance with budgeting and spending policies
• Provide training and resources on cost optimization practices

Cloud Architect

• Design the account structure to align with organizational objectives
• Ensure the architecture supports cost governance mechanisms
• Collaborate with stakeholders to implement the account structure effectively

DevOps Engineer

• Implement tools and processes for monitoring account usage
• Automate cost tracking and reporting mechanisms
• Maintain infrastructure in accordance with cost optimization policies

Finance Analyst

• Analyze cost data from various accounts
• Report on budget variances and optimization opportunities
• Work with teams to refine cost management strategies

Compliance Officer

• Ensure adherence to financial governance policies
• Conduct regular audits of account usage and spending
• Recommend adjustments to policies based on compliance findings

What evidence shows this is happening in your organization?

• Account Structure Policy Template: A template for creating an Account Structure Policy that outlines roles, responsibilities, and guidelines for account creation and management aligned with organizational goals.
• Cost Allocation Report: A detailed report that provides insights into cost allocations across different accounts and departments, highlighting usage patterns and opportunities for optimization.
• Account Management Checklist: A checklist to ensure all necessary steps are taken when creating and managing AWS accounts in line with the organization’s cost governance policies.
• Cost Optimization Dashboard: An interactive dashboard that visualizes account usage and costs across the organization, enabling stakeholders to monitor and manage expenditure effectively.
• Account Structure Strategy Guide: A guide that outlines strategies for structuring AWS accounts to optimize costs, improve governance, and enhance visibility across organizational units.

Cloud Services

AWS

• AWS Organizations: AWS Organizations allows you to create and manage multiple AWS accounts, helping you to structure your accounts for cost allocation and governance.
• AWS Budgets: AWS Budgets enables you to set custom cost and usage budgets that alert you when your usage exceeds thresholds, helping to manage costs effectively.
• AWS Cost Explorer: AWS Cost Explorer provides detailed insights into your AWS spending, allowing you to analyze and optimize costs as your account structure evolves.

Azure

• Azure Management Groups: Azure Management Groups allow you to manage multiple Azure subscriptions in a hierarchical structure, facilitating cost management across your organization.
• Azure Cost Management + Billing: This service helps you analyze your Azure spending and provides budgeting capabilities to ensure you stay within financial limits.
• Azure Advisor: Azure Advisor analyzes your deployments and provides recommendations to help you reduce costs and optimize resources based on your usage patterns.

Google Cloud Platform

• Google Cloud Billing: Google Cloud Billing allows you to create budgets and monitor your spending, ensuring that you can track costs across multiple projects and resources.
• Resource Hierarchy: The resource hierarchy in Google Cloud allows you to organize projects and resources in a way that assists with cost allocation and governance.
• Cloud Cost Management: Cloud Cost Management provides tools and insights to analyze and optimize spending across Google Cloud services.

Question: How do you govern usage?
Pillar: Cost Optimization (Code: COST)