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How do you track cloud costs?

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Cloud computing offers many benefits, such as scalability, flexibility, and efficiency, but it also comes with a challenge: how do you track cloud costs? Cloud costs can vary depending on factors such as usage, performance, and resources, and they can quickly add up if not monitored and managed properly. In this article, we will explore some of the best practices and tools to help you track cloud costs and optimize your cloud spending.

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1 Define your cloud budget

The first step to track cloud costs is to define your cloud budget. This means setting a realistic and measurable goal for how much you want to spend on cloud services, based on your business needs and objectives. You can use historical data, industry benchmarks, and forecasting methods to estimate your cloud budget and allocate it across different projects, teams, or departments. You should also review and adjust your cloud budget regularly, as your cloud needs and costs may change over time.

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Dr. Priyanka Singh Ph.D.

17K+ LinkedIn ?? AI Author ?? Transforming Generative AI ?? Responsible AI - EM @ Universal AI ?? Championing AI Ethics & Governance ?? Top Voice | Empowering Future AI Solutions | Packt Technical Reviewer
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Tracking cloud costs is crucial for businesses to optimize their cloud spending. One way to track cloud costs is by using cloud tags. Cloud tags are labels or metadata you can assign to your cloud resources to categorize and identify them. You can group your resources by function, owner, environment, or cost center criteria. This way, you can easily filter, analyze, and report your cloud costs by tag and see where your money is going and who is responsible. At my previous company, we used cloud tags to track our AWS costs and were able to identify areas where we could optimize our spending. It's essential to regularly audit your cloud usage and identify any waste or inefficiency to optimize your cloud costs.

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Tim Morrissey

Service-based Technologist @ IMS Solutions Group
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Great article! The concerns are real from the customer perspective. Having open communications and automated visibility for the customer via their IT Services Partner goes a long way. At IMS Solutions Group, we provide a customer portal that includes the monthly invoice with details, and we schedule QBRs to walk through all services, including Cloud activity/charges. Great stuff!

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2 Use cloud tags

The second step to track cloud costs is to use cloud tags. Cloud tags are labels or metadata that you can assign to your cloud resources, such as instances, volumes, or buckets, to categorize and identify them. You can use cloud tags to track cloud costs by grouping your resources by criteria such as function, owner, environment, or cost center. This way, you can easily filter, analyze, and report on your cloud costs by tag and see where your money is going and who is responsible for it.

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3 Enable cloud billing alerts

The third step to track cloud costs is to enable cloud billing alerts. Cloud billing alerts are notifications that you can set up to warn you when your cloud spending reaches or exceeds a certain threshold. You can use cloud billing alerts to track cloud costs by avoiding unexpected charges, identifying anomalies, and taking corrective actions. For example, you can set up a cloud billing alert to notify you when your cloud spending is 80% of your cloud budget, so you can review your cloud usage and optimize your resources.

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4 Implement cloud policies

The fourth step to track cloud costs is to implement cloud policies. Cloud policies are rules or guidelines that you can enforce to control and optimize your cloud usage and spending. You can use cloud policies to track cloud costs by preventing waste, improving efficiency, and ensuring compliance. For example, you can implement a cloud policy to automatically shut down or delete unused or underutilized resources, or to restrict access to certain cloud services or regions.

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5 Use cloud cost management tools

The fifth step to track cloud costs is to use cloud cost management tools. Cloud cost management tools are software applications that help you monitor, analyze, and optimize your cloud spending. You can use cloud cost management tools to track cloud costs by gaining visibility, insight, and recommendations on your cloud costs. For example, you can use a cloud cost management tool to generate detailed reports and dashboards on your cloud costs by service, resource, tag, or time period, or to identify and resolve cloud cost issues and inefficiencies.

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6 Learn from cloud best practices

The sixth step to track cloud costs is to learn from cloud best practices. Cloud best practices are proven methods or standards that help you achieve optimal performance, security, and cost-effectiveness in your cloud environment. You can use cloud best practices to track cloud costs by following the industry trends, best practices, and tips from cloud experts and peers. For example, you can learn from cloud best practices to choose the right cloud service model, optimize your cloud architecture, and leverage cloud features and benefits.

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Olanrewaju O.

Passionate Philanthropist and Innovative Tech & Energy Entrepreneur | Creating Positive Change Through Technology and Humanitarian Initiatives.
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I do agree by following the steps listed in the article and actively managing your cloud costs, you can gain better control over your cloud expenditure, identify cost-saving opportunities, and ensure optimal resource utilization in cloud computing.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you track cloud costs?

1

2

3

4

5

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1 Define your cloud budget

2 Use cloud tags

3 Enable cloud billing alerts

4 Implement cloud policies

5 Use cloud cost management tools

6 Learn from cloud best practices

7 Here’s what else to consider

Cloud Computing

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How do you track cloud costs?

1

2

3

4

5

6

7

1 Define your cloud budget

2 Use cloud tags

3 Enable cloud billing alerts

4 Implement cloud policies

5 Use cloud cost management tools

6 Learn from cloud best practices

7 Here’s what else to consider

Cloud Computing

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