The Doppler Quarterly Summer 2019 | Page 40

the entire term, the balance of that discount can be applied to another account. We recommend ensuring that reserva- tion sharing is enabled across all your accounts, so that any excess reservations in one account do not go to waste. Your account structure can also help your organization rec- ognize volume discounts offered by cloud providers. Con- sider S3 on AWS, which has a tiered pricing structure that gets cheaper per unit the more you consume. To determine your monthly bill, AWS will aggregate all of the consump- tion of S3 under an account, determine what level of volume discount is applicable and then apply that discount propor- tionally across subscriptions within the account. If you have numerous independent accounts, they may never consume enough S3 to earn these volume discounts, so we recom- mend making sure that all your accounts tie back to one master billing account. Controlling Costs Moving Forward: Policies and Controls Getting the expected cost reductions and return on invest- ment from your cloud program require more than one-time corrections. Financial control policies which reflect the new world of cloud need to replace old static infrastruc- ture behaviors. Many of the common patterns for con- trolling costs in the cloud are predicated upon having a robust and actively enforced naming and tagging stan- dard. In a world where infra- structure can come and go by the minute, it is imperative to take the time to develop a comprehensive tagging schema, and to use tools to auto-enforce and monitor adherence, which subsequently will enable all these downstream controls, and help with the success of your cloud program. This increased level of cost transparency helps inform teams that may have had no idea of how much they were consuming, and can directly incent them to be more cost conscious with their provisioning, deprovisioning and con- sumption habits. In fact, some companies have found suc- cess by gamifying cost reduction through friendly competi- tions among development teams driving to a better bottom line. While not all cloud services can be tagged, our best practice is to implement showback to the application teams for all services which can be tagged, before considering if chargeback is right for your organization. While showback and chargeback could also be imple- mented on-premises to promote the deprovisioning of resources, that hardware will still exist in the data center and the cost must still be carried by the enterprise. The abil- ity to scale the number (and size) of environments down (and up) and immediately recognize cost benefits, is a new opportunity uniquely enabled by the cloud, and you should take advantage of it. Showback and chargeback are great ways to provide feed- back and course correct month over month, but there are also ways via budgeting and alerting to be more proactive about controlling consump- tion before the bill is received at month’s end. Cloud provid- ers have tools and systems in place to enable setting soft quotas for development teams that, when reached, will trigger alarms and send notifications to identified stakeholders. Services such as AWS Budgets and Azure Consumption’s Budget API will utilize the tags on your resources to enable you to set alerts like, “Let me know if my team gets within 50% of our budget within the first 10 days of the month.” These types of guardrails were not necessary in an on-premises world where the only resources you had to use were those in your data center. But in the cloud, they represent a new behavior that your organization needs to adopt in order to keep your costs in check. Some companies have found success by gamifying cost reduc- tion through friendly competitions among development teams. With proper naming and tagging, you will be able to pin- point which users or groups consumed which services (showback), and thereby have the option to charge them their portion of the cloud bill each month (chargeback). 38 | THE DOPPLER | SUMMER 2019