Cloud Financial Management - Overview of Amazon Web Services

Cloud Financial Management

AWS Application Cost Profiler

AWS Application Cost Profiler provides you the ability to track the consumption of shared AWS resources used by software applications and report granular cost breakdown across tenant base. You can achieve economies of scale with the shared infrastructure model, while still maintaining a clear line of sight to detailed resource consumption information across multiple dimensions.

With the proportionate cost insights of shared AWS resources, organizations running applications can establish the data foundation for accurate cost allocation model, and ISV selling applications can better understand your profitability and customize pricing strategies for your end customers.

AWS Cost Explorer

AWS Cost Explorer has an easy-to-use interface that lets you visualize, understand, and manage your AWS costs and usage over time. Get started quickly by creating custom reports (including charts and tabular data) that analyze cost and usage data, both at a high level (e.g., total costs and usage across all accounts) and for highly-specific requests (e.g., m2.2xlarge costs within account Y that are tagged “project: secretProject”).

AWS Budgets

AWS Budgets gives you the ability to set custom budgets that alert you when your costs or usage exceed (or are forecasted to exceed) your budgeted amount. You can also use AWS Budgets to set RI utilization or coverage targets and receive alerts when your utilization drops below the threshold you define. RI alerts support Amazon EC2, Amazon RDS, Amazon Redshift, and Amazon ElastiCache reservations.

Budgets can be tracked at the monthly, quarterly, or yearly level, and you can customize the start and end dates. You can further refine your budget to track costs associated with multiple dimensions, such as AWS service, linked account, tag, and others. Budget alerts can be sent via email and/or Amazon Simple Notification Service (SNS) topic.

Budgets can be created and tracked from the AWS Budgets dashboard or via the Budgets API.

AWS Cost & Usage Report

The AWS Cost & Usage Report is a single location for accessing comprehensive information about your AWS costs and usage.

The AWS Cost & Usage Report lists AWS usage for each service category used by an account and its IAM users in hourly or daily line items, as well as any tags that you have activated for cost allocation purposes. You can also customize the AWS Cost & Usage Report to aggregate your usage data to the daily or monthly level.

Reserved Instance (RI) Reporting

AWS provides a number of RI-specific cost management solutions out-of-the-box to help you better understand and manage your RIs. Using the RI Utilization and Coverage reports available in AWS Cost Explorer, you can visualize your RI data at an aggregate level or inspect a particular RI subscription. To access the most detailed RI information available, you can leverage the AWS Cost & Usage Report. You can also set a custom RI utilization target via AWS Budgets and receive alerts when your utilization drops below the threshold you define.

Savings Plans

Savings Plans is a flexible pricing model offering lower prices compared to On-Demand pricing, in exchange for a specific usage commitment (measured in $/hour) for a one or three-year period. AWS offers three types of Savings Plans – Compute Savings Plans, EC2 Instance Savings Plans, and Amazon SageMaker Savings Plans. Compute Savings Plans apply to usage across Amazon EC2, AWS Lambda, and AWS Fargate. The EC2 Instance Savings Plans apply to EC2 usage, and Amazon SageMaker Savings Plans apply to Amazon SageMaker usage. You can easily sign up a 1- or 3-year term Savings Plans in AWS Cost Explorer and manage your plans by taking advantage of recommendations, performance reporting, and budget alerts.