Cloud Computing
Cloud Cost Management
Definition
Cloud Cost Management is the process of effectively managing and controlling the costs associated with using cloud services. It involves monitoring usage, identifying waste, forecasting future spending, and optimizing resource allocation.
Why It Matters
The flexibility of the cloud can be a double-edged sword. Without proper management, costs can quickly spiral out of control. Cloud cost management is essential for ensuring that a company gets the most value from its cloud investment.
Contextual Example
A cloud cost management strategy would include setting budgets and alerts, tagging resources to attribute costs to different teams, regularly right-sizing instances, and using cost-saving plans like Reserved Instances.
Common Misunderstandings
- FinOps is a cultural practice that operationalizes cloud cost management.
- All major cloud providers offer tools to help with cost management (e.g., AWS Cost Explorer, Azure Cost Management).