Cloud Computing
Cloud Billing
Definition
Cloud billing is the process by which cloud providers charge customers for the use of their services. It is typically a complex process based on metered usage of many different services and resources.
Why It Matters
Understanding the cloud bill is the first step in managing and optimizing cloud costs. The bill provides the raw data needed to see what services are being used, who is using them, and where costs can be reduced.
Contextual Example
An AWS bill will have line items for EC2 compute hours, S3 storage in gigabytes, data transfer costs, database usage, and hundreds of other potential charges. Analyzing this bill is a core task for a FinOps team.
Common Misunderstandings
- Cloud bills can be notoriously complex and difficult to understand without specialized tools.
- Resource tagging is a crucial practice for allocating costs on a cloud bill to specific projects, teams, or environments.