COST02-BP01 Develop policies based on your organization requirements - AWS Well-Architected Framework

COST02-BP01 Develop policies based on your organization requirements

Develop policies that define how resources are managed by your organization. Policies should cover cost aspects of resources and workloads, including creation, modification and decommission over the resource lifetime.

Level of risk exposed if this best practice is not established: High

Implementation guidance

Understanding your organization’s costs and drivers is critical for managing your cost and usage effectively, and identifying cost-reduction opportunities. Organizations typically operate multiple workloads run by multiple teams. These teams can be in different organization units, each with its own revenue stream. The capability to attribute resource costs to the workloads, individual organization, or product owners drives efficient usage behaviour and helps reduce waste. Accurate cost and usage monitoring allows you to understand how profitable organization units and products are, and allows you to make more informed decisions about where to allocate resources within your organization. Awareness of usage at all levels in the organization is key to driving change, as change in usage drives changes in cost. Consider taking a multi-faceted approach to becoming aware of your usage and expenditures.

The first step in performing governance is to use your organization’s requirements to develop policies for your cloud usage. These policies define how your organization uses the cloud and how resources are managed. Policies should cover all aspects of resources and workloads that relate to cost or usage, including creation, modification, and decommission over the resource’s lifetime.

Policies should be simple so that they are easily understood and can be implemented effectively throughout the organization. Start with broad, high-level policies, such as which geographic Region usage is allowed in, or times of the day that resources should be running. Gradually refine the policies for the various organizational units and workloads. Common policies include which services and features can be used (for example, lower performance storage in test or development environments), and which types of resources can be used by different groups (for example, the largest size of resource in a development account is medium).

Implementation steps

  • Meet with team members: To develop policies, get all team members from your organization to specify their requirements and document them accordingly. Take an iterative approach by starting broadly and continually refine down to the smallest units at each step. Team members include those with direct interest in the workload, such as organization units or application owners, as well as supporting groups, such as security and finance teams.

  • Define locations for your workload: Define where your workload operates, including the country and the area within the country. This information is used for mapping to AWS Regions and Availability Zones.

  • Define and group services and resources: Define the services that the workloads require. For each service, specify the types, the size, and the number of resources required. Define groups for the resources by function, such as application servers or database storage. Resources can belong to multiple groups.

  • Define and group the users by function: Define the users that interact with the workload, focusing on what they do and how they use the workload, not on who they are or their position in the organization. Group similar users or functions together. You can use the AWS managed policies as a guide.

  • Define the actions: Using the locations, resources, and users identified previously, define the actions that are required by each to achieve the workload outcomes over its life time (development, operation, and decommission). Identify the actions based on the groups, not the individual elements in the groups, in each location. Start broadly with read or write, then refine down to specific actions to each service.

  • Define the review period: Workloads and organizational requirements can change over time. Define the workload review schedule to ensure it remains aligned with organizational priorities.

  • Document the policies: Ensure the policies that have been defined are accessible as required by your organization. These policies are used to implement, maintain, and audit access of your environments.

Resources

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