This presentation is about AWS cost management on the cloud you only pay for what you use and what you need, payments, plans and financial.

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Digital Transformation Day
Kuwait
Cloud Financial Management
Manage, optimize, and predict AWS costs
Santiago Freitas
Head of Technology, AWS MENA

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You’re using AWS
and you like it!

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But maybe you are spending more
than you planned …

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Or you’d just like to spend less

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With the AWS cloud,
you only pay for what
you use

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How do you
ensure that you
only pay for what
you need?

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Not a traditional data center
Sources:
1. RightScale 2019 State of the Cloud Report from Flexera;
2. (451 Research Report) Cost Management in the Cloud Age Enterprise readiness threatens innovation. (451 Research study commissioned by Cloudability)
Poor cloud cost management
impacts the business2
80% of respondents acknowledge that poor
financial management related to cloud costs has
had a negative impact on their business
Slows/halts cloud adoption (53%)
Cripples innovation (25%)
Lowers quality of service (38%)
Leads to sprawl/underutilization of resources (40%)
Increases cost (22%)
Traditional financial management
processes cause up to $10B+ in
excess annual cloud spend1
65%
efficient
cloud spend
35%
excess spend

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Measurement &
accountability (see)
Account & tagging strategy
Cost reporting &
monitoring processes
Cost show/chargeback
Efficiency/value KPIs
Putting it all together:
Cloud Financial Management
Planning &
forecasting (plan)
Budgeting & forecasting
variable cloud usage
POC based cost estimation
Business case/value articulation
Strategic fit
Cost
optimization (save)
Cost aware architecture,
design & service selection
Match capacity with demand
Choose the right pricing model
Identify resource waste
Cloud financial
operations (run)
Secure executive sponsorship
Partnership between Finance
& Technology organizations
Invest in people, governance
& tools
Celebrate accomplishments

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Digital Transformation Day
Kuwait
How do you get hundreds or even
thousands of people to take action?

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Digital Transformation Day
Kuwait
Building a cost conscious culture

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Digital Transformation Day
Kuwait
If I can see it and believe it,
then I can achieve it
Arnold Schwarzenegger

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How much does my project and app cost?
How many EC2 RIs or Savings Plans should we
purchase?
Why did our spend go up in region us-east-1 in
September?

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Step 1: Establish your account strategy

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AWS account
Security and
resource boundary
API limits and
throttling
Billing
separation

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Why one account isn’t enough
Billing
Many teams
Security and
compliance controls
Business
process
Isolation

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Start with clean data structure
Cost allocation tags
Environment (DEV)
Project
Team
Application ID
Cost center
AWS Organizations

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AWS Organizations + budgets for monitoring
Alerts can provide
notifications when budget is
reached
Cost allocation tags
Environment
Project
Team
Application ID
Cost center

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AWS Control Tower:
Consistent and simple multi-account management
Automated AWS setup
Launch an automated
landing zone with best-
practices blueprints
Policy enforcement
Pre-packaged guardrails
to enforce policies or
detect violations
Dashboard for oversight
Continuous visibility
into workload compliance
with controls

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Step 2: Establish your tagging strategy

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What’s in a tag?

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Using tags to establish visibility & chargebacks
https://aws.amazon.com/answers/account-management/aws-tagging-strategies/
Stakeholders Examples
• Cost center
• Application or workload
• User
• Expiration date
• Automation support

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AWS Tools to help with missing or misspelled tags
2. AWS Config + Lambda1. AWS Tag Editor
https://bit.ly/co17_tag2
https://docs.aws.amazon.com/awsconsolehelpdocs/latest/gsg/scenario-implementing-tagging.html

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Step 3: Set up cost reports in AWS Cost Explorer

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AWS Cost Explorer
AWS Cost Explorer lets you dive deeper into your
cost and usage data to identify trends, pinpoint
cost drivers, and detect anomalies
Get started quickly!
• Monthly and daily cost by service or linked
account
• Monthly EC2 running hours cost and usage
• Reserved instance reports
• RI utilization
• RI coverage
NOTE: All functionality is also available
programmatically via the AWS Cost Explorer API

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The five pillars of cost optimization
Right-sizing your
instances
Pick the right
pricing model
Increase elasticity
Measuring &
monitoring
Match usage to
storage class

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New! AWS Cost Explorer: Resource optimization
Amazon EC2 Resource
Rightsizing
recommendation
• Available for payer and
linked account
• All of these features
can also be accessed
through the Cost
Explorer API

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Automate to self-sustain
AWS Instance Scheduler
AWS Auto Scaling
S3 Intelligent-Tiering
AWS Budgets

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Where to start
• Visit cost optimization resource center @
https://aws.amazon.com/pricing/cost-optimization/
• Enable cost explorer for your organization
• Leverage cost management partners
https://aws.amazon.com/products/management-tools/partner-
solutions/

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Thank you!