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Implement cost controls

Establishing effective cost controls is vital for maintaining budget discipline while still fostering innovation. By setting well-defined organizational policies centred around cost governance, you ensure that resource usage aligns with corporate objectives, thus avoiding unnecessary expenses.

Best Practices

  • Define Organizational Policies: Create clear cost governance policies that dictate spending limits and specify acceptable resource types. This clarity is critical so teams can effectively manage their budgets while pursuing innovation.
  • Implement Role-Based Access Control: Establish access controls based on defined roles and responsibilities. This limits resource provisioning to those who understand the cost implications, ensuring compliance with spending policies.

Supporting Questions

  • How do you ensure that resource usage aligns with budgetary constraints?
  • Are there mechanisms in place to track and report unforeseen costs?
  • What processes exist for regular review and adjustment of cost governance policies?

Roles and Responsibilities

  • Cloud Financial Manager: Responsible for overseeing cost governance practices, monitoring cloud expenses, and ensuring compliance with organizational spending policies.
  • DevOps Engineer: Implement cost control measures in the deployment and operation of applications, ensuring adherence to established budget guidelines.

Artifacts

  • Cost Governance Policy Document: A document that outlines cost-related policies, including spending thresholds, approval workflows, and defined access rights for resource provisioning.
  • Cost Tracking Dashboard: A real-time dashboard that monitors spending across projects, enabling teams to visualize costs against budgets and make informed decisions.

Cloud Services

AWS

  • AWS Budgets: Allows organizations to set budget thresholds for their AWS spending, enabling proactive monitoring and notifications as they approach budget limits.
  • AWS Cost Explorer: Provides powerful analytics tools to visualize, understand, and manage AWS spending and usage efficiently, assisting in cost control efforts.
  • AWS IAM: Enables role-based access control, ensuring that only authorized users can access and deploy resources, thus supporting cost governance policies.

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

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