Practice Cloud Financial Management - AWS Well-Architected Framework

Practice Cloud Financial Management

COST 1  How do you implement cloud financial management?

Implementing Cloud Financial Management enables organizations to realize business value and financial success as they optimize their cost and usage and scale on AWS.

Best Practices:

  • Establish a cost optimization function: Create a team that is responsible for establishing and maintaining cost awareness across your organization. The team requires people from finance, technology, and business roles across the organization.

  • Establish a partnership between finance and technology: Involve finance and technology teams in cost and usage discussions at all stages of your cloud journey. Teams regularly meet and discuss topics such as organizational goals and targets, current state of cost and usage, and financial and accounting practices.

  • Establish cloud budgets and forecasts: Adjust existing organizational budgeting and forecasting processes to be compatible with the highly variable nature of cloud costs and usage. Processes must be dynamic using trend based or business driver-based algorithms, or a combination.

  • Implement cost awareness in your organizational processes: Implement cost awareness into new or existing processes that impact usage, and leverage existing processes for cost awareness. Implement cost awareness into employee training.

  • Report and notify on cost optimization: Configure AWS Budgets to provide notifications on cost and usage against targets. Have regular meetings to analyze this workload's cost efficiency and to promote cost aware culture.

  • Monitor cost proactively: Implement tooling and dashboards to monitor cost proactively for the workload. Do not just look at costs and categories when you receive notifications. This helps to identify positive trends and promote them throughout your organization.

  • Keep up to date with new service releases: Consult regularly with experts or APN Partners to consider which services and features provide lower cost. Review AWS blogs and other information sources.