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Operational Excellence
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- Resources have identified owners
- Processes and procedures have identified owners
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- Mechanisms exist to request additions, changes, and exceptions
- Responsibilities between teams are predefined or negotiated
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- Executive Sponsorship
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- Use version control
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- Have a process for continuous improvement
- Perform post-incident analysis
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Security
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- Separate workloads using accounts
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- Define access requirements
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- Perform regular penetration testing
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Reliability
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- Be aware of service quotas and constraints in Cloud Services
- Manage service quotas across accounts and Regions
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- Monitor and manage quotas
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- Use highly available network connectivity for your workload public endpoints
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- Prefer hub-and-spoke topologies over many-to-many mesh
- Enforce non-overlapping private IP address ranges in all private address spaces where they are connected
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- Monitor end-to-end tracing of requests through your system
- Conduct reviews regularly
- Analytics
- Automate responses (Real-time processing and alarming)
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- Monitor End-to-End Tracing of Requests Through Your System
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- Monitor all components of the workload to detect failures
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Cost Optimization
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- Establish ownership of cost optimization
- Establish a partnership between finance and technology
- Establish cloud budgets and forecasts
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- Monitor cost proactively
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- Quantify business value from cost optimization
- Report and notify on cost optimization
- Create a cost-aware culture
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- Perform cost analysis for different usage over time
- Analyze all components of this workload
- Perform a thorough analysis of each component
- Select components of this workload to optimize cost in line with organization priorities
- Perform cost analysis for different usage over time
- Select software with cost effective licensing
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Performance
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- Learn about and understand available cloud services and features
- Evaluate how trade-offs impact customers and architecture efficiency
- Use guidance from your cloud provider or an appropriate partner to learn about architecture patterns and best practices
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- Use policies and reference architectures
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- Use purpose-built data store that best support your data access and storage requirements
- Collect and record data store performance metrics
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- Implement data access patterns that utilize caching
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- Understand how networking impacts performance
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- Choose appropriate dedicated connectivity or VPN for your workload
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- Choose network protocols to improve performance
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- Establish key performance indicators (KPIs) to measure workload health and performance
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Sustainability
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- Scale workload infrastructure dynamically
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- Optimize software and architecture for asynchronous and scheduled jobs
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- Optimize areas of code that consume the most time or resources
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- Use software patterns and architectures that best support data access and storage patterns
- Remove unneeded or redundant data
- Use technologies that support data access and storage patterns
- Use policies to manage the lifecycle of your datasets
- Use shared file systems or storage to access common data
- Back up data only when difficult to recreate
- Use elasticity and automation to expand block storage or file system
- Minimize data movement across networks
- Implement a data classification policy
- Remove unneeded or redundant data
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- Articles coming soon
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Create a cost-aware culture
PostedDecember 20, 2024
UpdatedMarch 21, 2025
ByKevin McCaffrey
Implementing a cost-aware culture is essential for organizations aiming to optimize their spending and usage on AWS. By fostering an environment where cost management is prioritized, teams can better align their cloud strategies with business objectives, ensuring long-term financial success.
Best Practices
Foster a Cost-Aware Culture
- Implement regular financial training sessions for all teams to raise awareness about cloud costs and budget management.
- Encourage teams to set budget limits for projects and track their spending against these limits to promote accountability.
- Use cost allocation tags effectively to provide visibility into spending across different teams and projects.
- Incorporate financial metrics into team performance reviews to align team incentives with cost optimization goals.
- Celebrating successes in cost-saving initiatives to motivate teams and reinforce the importance of financial stewardship.
Questions to ask your team
- Have you established initiatives that encourage teams to consider cost in their project planning and design?
- Are there training programs in place to educate employees on cloud costs and optimization techniques?
- Do you provide regular updates and reports on cloud spending to relevant teams?
- Is there a framework for assessing the costs of new initiatives before they are launched?
- Are cost optimization best practices shared and discussed in team meetings or forums?
- Has your organization recognized and rewarded teams or individuals for effective cost management?
- Are tools and dashboards available to help teams track their cloud spending and usage?
Who should be doing this?
Cloud Financial Manager
- Develop and implement cost management strategies and tools.
- Monitor and analyze AWS spend and resource usage.
- Generate reports to communicate financial performance and cost optimization opportunities.
- Collaborate with teams to identify areas for cost reduction and efficiency improvements.
Finance Analyst
- Collect and analyze financial data related to cloud usage.
- Create budgets and forecasts for cloud expenditures.
- Assist in developing financial policies and guidelines for cloud services.
- Support teams in understanding the financial implications of their cloud usage.
DevOps Engineer
- Integrate cost management tools with CI/CD pipelines for continuous monitoring of costs.
- Implement automation for scaling resources to optimize costs.
- Collaborate with finance teams to ensure alignment between operational and financial responsibilities.
Team Lead / Manager
- Foster a culture of cost awareness among team members.
- Encourage team participation in cost optimization initiatives.
- Support training and development programs focused on financial management in the cloud.
Business Stakeholder
- Communicate the importance of financial accountability to teams.
- Support initiatives that promote a cost-aware culture.
- Provide feedback on the effectiveness of cost management programs.
What evidence shows this is happening in your organization?
- Cost Awareness Training Program: A structured training program designed to educate employees on cloud cost management practices, AWS pricing models, and the importance of cost optimization.
- Monthly Cost Review Dashboard: A dashboard that provides insights into cloud spending by department and project, enabling teams to track their expenses and understand their impact on the overall budget.
- Cost Optimization Checklist: A checklist for teams to follow when deploying new cloud resources, ensuring they consider cost implications and optimization strategies.
- Cloud Financial Management Policy: An organizational policy outlining the goals, practices, and responsibilities related to cloud financial management and cost optimization initiatives.
- Cloud Usage Awareness Campaign: A campaign aimed at promoting awareness of cloud usage and costs, featuring posters, workshops, and email newsletters to reinforce the importance of budget-conscious decisions.
Cloud Services
AWS
- AWS Budgets: AWS Budgets allows you to set custom cost and usage budgets that alert you when you exceed your thresholds, helping to cultivate cost-awareness.
- AWS Cost Explorer: AWS Cost Explorer provides insights into your spending patterns, allowing teams to analyze costs over time and make informed decisions.
- AWS Cost and Usage Report: This service provides a detailed report of your AWS usage and costs, allowing you to analyze where your resources are being consumed.
Azure
- Azure Cost Management and Billing: Azure Cost Management helps organizations monitor, allocate, and optimize their cloud spending, promoting financial awareness across teams.
- Azure Budget: Azure Budgets allow you to create and manage budgets, setting alerts when spending reaches certain thresholds, fostering a culture of cost management.
Google Cloud Platform
- Google Cloud Billing: Google Cloud Billing provides tools to manage and analyze your costs, helping teams to understand their spending and optimize it accordingly.
- Google Cloud Cost Management: This suite of tools allows users to gain visibility of their resource usage and spending patterns, promoting a culture of cost awareness.
Question: How do you implement cloud financial management?
Pillar: Cost Optimization (Code: COST)
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