AWS Tagging

AWS Tagging

Welcome back to the AWS Cost Optimization journey! Today, we're diving into the AWS Tagging. In the this part, we'll supercharge your cost tracking and auditing skills with tags. Let's get started!

?? What are Tags and Why They Matter:

Let's start by understanding what tags are.

Tags are like labels containing key-value pairs that you attach to a resource to store metadata about that specific resource. Each tag consists of a key and an optional value. It's worth noting that while tags are incredibly useful, not all services and resource types currently offer support for them (you can check the list of supported services through the Resource Groups Tagging API).


Tags fall into two categories: user-defined tags and AWS generated tags.

User-defined tags are tags created and applied by users using the AWS CLI, API, or the AWS Management Console.

On the other hand, AWS services like AWS CloudFormation, Elastic Beanstalk, and Auto Scaling automatically assign tags to resources they create and manage. These are known as AWS generated tags and typically carry the 'aws' prefix. It's important to note that this 'aws' prefix cannot be used in user-defined tag keys.

Cost allocation tags are your secret sauce for cost control. They allow you to categorize and label AWS resources with metadata, enhancing cost tracking and auditing.

?? Why Proper Tagging Matters:

1. Granular Visibility: Almost every AWS service supports tagging, offering a magnifying glass into expenses.

2. Transparency: Tags provide insight into resource allocation, fostering cost accountability.

3. Cost Allocation: Tags simplify budgeting and financial reporting.

4. Audit Trail: Tags create an audit trail for every resource.

Important: Do not store personally identifiable information (PII) or sensitive data in tags. They are for billing and administration services, not private or sensitive data.

??? Best Practices for Tagging Strategy:

When creating a tagging strategy, follow these best practices:

- Avoid PII or sensitive data in tags.

- Use a standardized, case-sensitive format consistently.

- Consider tag guidelines supporting access control, cost tracking, automation, and organization.

- Utilize automated tools like Tag Editor and the Resource Groups Tagging API.

- Use more tags for greater granularity.

Adding/Edit AWS Tagging:

Activating user-defined cost allocation tags:

For your user-defined cost allocation tags to appear on your billing reports, you need to activate them. These tags represent the tag key, which you can activate in the Billing and Cost Management console. Keep in mind that when you activate or deactivate a tag key, it will affect all tag values associated with that key, and a single tag key can have multiple tag values.

Here's how to activate your tag keys:

1. Sign in to the AWS Management Console and open the AWS Billing console at Billing Console Link.

2. In the navigation pane, choose 'Cost allocation tags.'

3. Select the tag keys that you want to activate.

4. Choose 'Activate.'

Please note that after you create and apply user-defined tags to your resources, it can take up to 24 hours for the tag keys to appear on your cost allocation tags page for activation. Subsequently, it can also take up to 24 hours for tag keys to activate.

For a visual example of how tag keys appear in your billing report with cost allocation tags, you can refer to Viewing a cost allocation report.

? Take Control of Your AWS Costs:

By mastering the art of tagging you're not just optimizing costs; you're gaining unparalleled insights into your cloud spending, proactively protecting your budget, and detecting anomalies before they impact your bottom line.


For more details and best practices regarding AWS tagging, you can refer to the following resources:


Stay tuned for more cost optimization gems in this series. Let's make AWS cost optimization a superpower together!

#AWS #CostOptimization #AWSBestPractices #DevOps


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