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Cost Management Week: Modelling
Before diving into the 'how' of Cost Management - it's important to understand the organisational context. The easiest way to do this is through the creation of a cost model - which gives you insight into the design principles use you can use for your future cost management.
There are a few quick tricks we can utilise to manage this properly.
There are a few quick tricks we can utilise to manage this properly.
- Understand Your Organisation - every organisation manages Cloud differently. Consider whether you use shared services or individualised billing.
- Consider Requirements - as stated previously: premtaure optimisation is the root of all evil. Consider the real requirements first before designing an optimisation strategy
- Consider trade-offs. If your organisation has a high cost of labour, optimising Cloud spend may be lower priority, because the cost of optimisation may be higher than the return. If your organisation has a low cost of labour, you can focus more on optimisation
- Plan billing models. Organisations have different financial operating models at different times. Sometimes cash is cheaper than others - so consider how different billing models can impact your organisation. Cloud can provide up-front billing like a Reserved Instance (which can be deprecated as capex), pay-per-hour, or even pay-per-invocation