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© 2022, Amazon Web Services, Inc. or its affiliates.
© 2022, Amazon Web Services, Inc. or its affiliates.
Techniques: Tagging
Presenter Name, title & team
Date
AWS Cost Optimization Workshop
© 2022, Amazon Web Services, Inc. or its affiliates.
Agenda
• Tag Taxonomy
• Proactive vs Reactive Tag Governance
• Proactive Tag Governance
• Tags Policies
• IAM or Organization Service Control Policies
• AWS Config Rules
• Reactive Tag Governance Tags Policies
• AWS Config rules
• Example Use Cases
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Tagging is like exercising
Everyone agrees it should be done …
But it is hard to implement and keep consistent.
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Tagging – Basic rules
• Maximum number of tags per resource – 50
• Maximum active tags keys for Billing and Cost Management reports - 500
• For each resource, each tag key must be unique, and each tag key can have only
one value.
• Maximum key length – 128 Unicode characters in UTF-8
• Maximum value length – 256 Unicode characters in UTF-8
• Although EC2 allows for any character in its tags, other services are more
restrictive. The allowed characters across services are: letters, numbers,
and spaces representable in UTF-8, and the following characters: + - = . _
: / @.
• Tag keys and values are case-sensitive.
• The aws: prefix is reserved for AWS use. If a tag has a tag key with this prefix,
then you can't edit or delete the tag's key or value. Tags with the aws: prefix do
not count against your tags per resource limit.
© 2022, Amazon Web Services, Inc. or its affiliates.
Resource tags vs Cost Allocation tags
• Cost allocations tags are a subset of
resource tags that can be used for
billing/financial purposes.
• Cost allocation tags needs to be
enabled in the billing console of the
master account
• It may take up to 24 hrs. to get cost
allocation tags to show up on billing.
Applies to line items on a going forward
basis
© 2022, Amazon Web Services, Inc. or its affiliates.
Customer Tags and AWS-Generated Tags
All tags with aws: as prefix are tags generated by AWS and are related to services in use
The aws:createdBy is applied only to resources created after the tag was activated
Those tags and the tags created by the customers needs to be activated in the billing console
in order to be reflected in CUR and Cost Explorer.
Best practice is to enable
AWS-generated cost
allocation tags
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Tagging –Taxonomy example
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What this presentation is focused on
Basic Tagging categories:
• Technical
• Automation
• Security
• Business
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Tagging – What happens if tagging is not enforced
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Business Tag Taxonomy
Benefits
• Standardizes tags across accounts
• Focus on business needs
• Enables business insights
Action
• Agree a taxonomy with business stakeholders
• Implement a proactive/reactive tagging strategy and a way to enforce it
Tools
• AWS Tags Policies
• AWS Config Rules
• AWS Service Control Policies (SCP)
• AWS Tag Editor
• Third party – with aws api
© 2022, Amazon Web Services, Inc. or its affiliates.
Example Taxonomy – real use case from large enterprise customers
Tag Rationale Example
ProjectId Identify the project running the application ProjectX
ApplicationId Identify the application DataLakeX, RetailSiteX
LayerId SubComponent / Layer DB Layer, Web, Layer
BusinessUnitId Identify the business unit
ArchitectureBusinessUnit,
OperationBusinessUnit
CostCenterId Identify the Cost Center
EnvironmentId
to identify the environment where the application is
running
Prod, Dev, Test
RightSizingId Allows to track cost/hours of resources targeted for RS Q1 2018-6hexcode
SourceInstanceType Defines the original instance type to be rightsized R5.8xlarge
DestinationInstanceTyp
e
Defines the target instance type for the rightsizing R5.xlarge
ArnId Track top resources by ARN unique identifiers
TeamName/ID To identify a specific team/owner
aws:createdBy AWS-Generated cost allocation tags
AssumedRole:[Role Key
ID]:DummyUser
aws:*
Anything with aws: prefix is automatically generated by
aws
EXAMPLE
© 2022, Amazon Web Services, Inc. or its affiliates.
Tagging – Lessons Learnt
• Don’t overload tags,
• i.e. Tag1: test1:awsenv2:12734:external
• Enable them in PoCs
• Agree a simple taxonomy
• Specially important when multiple teams use the same account
• Critical to allocate credits later on to report and chargeback
• Ensure consistency in consolidated account families.
• Use automation when possible to catch duplicates, misspellings, etc.
• DBR and CUR are not retroactive, careful with yearly summaries if tagging
was not implemented.
© 2022, Amazon Web Services, Inc. or its affiliates.
© 2022, Amazon Web Services, Inc. or its affiliates.
Tag Enforcement
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Proactive
• Good for new workloads and when
considering tags in the project design
phase
• Could break automation for existing
workload
• Can work only if the API’s support atomic
operations (similar to SCP or IAM)
• AWS Tools: Tag policies, AWS
Organization SCP, IAM Policies, Service
Catalog tags
Tags - Proactive vs Reactive tags enforcement
Reactive
• Good for existing workloads
• Possibility to have compliance reports to
provide a list of non compliant resources to
action, manually or automatically
• Does not break existing automations
• AWS Tools: Tag Editor, AWS Config rules,
Custom lambdas
Usually both methods need to be used for an effective Tag enforcement
© 2022, Amazon Web Services, Inc. or its affiliates.
Proactive Tag Enforcement
AWS Organizations
• SCP - Fine Grained Service Controlled Policies (Enforcement)
• Tag Policies (Validation)
Service Catalog
• Incorporate tagging (TagOptions) as part of product catalog items
Cloud Formation/Terraform
• Enforce tagging through your CloudFormation/Terraform IAC scripts
Note: Not all services support Tags and/or Tag enforcement.
Services and resource types that support enforcement (open link)
© 2022, Amazon Web Services, Inc. or its affiliates.
Service Control Policies (Enforce)
Service control policies (SCPs) are a type of organization policy (JSON) that you can
use to manage permissions in your organization:
• A set of actions
• Their permissible values
• Any constraints you want to place on the actions
© 2022, Amazon Web Services, Inc. or its affiliates.
Tag Policies (Validate)
Tag policies are JSON files that define the following:
• A set of tag keys
• Their permissible values
• Any constraints you want to place on the use of tags for the accounts in your
organization
Be aware that Tag Policies will allow resources
without Tags. This is potentially addressed by
enforcement through SCP / IAM policies.
© 2022, Amazon Web Services, Inc. or its affiliates.
Tag policies
Tag policies blog
Tag policies Limits
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Tags Policies - disabled by default
© 2022, Amazon Web Services, Inc. or its affiliates.
Creating a tag policy
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Create a tag policy (2)
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Attach a tag policy
Services and resource types that support enforcement
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Tagging - Reactive Enforcement
Tag Governance should identify non-compliant resources and optionally initiate a remediation
action.
Reactive TAG Enforcement (Compliance)
• AWS Config rules
• Required-tags (managed rule)
• Set up custom rule
•Tag Editor
• Discover untagged/wrongly tagged assets
• To bulk filter, add, and edit tags
Can export resources and tags to csv
Turning on cost allocation tags
https://docs.aws.amazon.com/awsaccountbilling/latest/aboutv2/cost-alloc-tags.html
© 2022, Amazon Web Services, Inc. or its affiliates.
Example AWS Config Rules
In this example AWS Config
rules will use the managed
rule “required-tags” to verify
that every asset has been
correctly tagged with a tag
named CostCenter with
allowed values 111 or 222.
Any asset identified not
having the required tag or the
required values in the tag will
be non-compliant.
© 2022, Amazon Web Services, Inc. or its affiliates.
Example AWS Config Rules
From the EC2 console launch
two EC2 instances in the same
region as the rule, one with the
CostCenter tag 111 and one
without any tags.
From the AWS Config console
select the newly created rule and
refresh it until it detects the
creation events of the two new
instances.
Check the compliance status
section of the rule where you
should see 1 non-compliant
instance and 1 compliant.
© 2022, Amazon Web Services, Inc. or its affiliates.
Example AWS Config Rules
When identifying a non
compliant asset one can choose
a remediation action:
You can edit the AWS Config
Rule to add a remediation action
for non-compliant assets.
In this example the non-
compliant EC2 instance will be
stopped.
Save the remediation action
Go back to the rule compliance
status and select the non-
compliant resource.
Select remediate.
© 2022, Amazon Web Services, Inc. or its affiliates.
Tag Editor
 Actions to manage tagging:
 Add
 Edit
 Delete
 Search and manage the resources that you want to tag via search
results
 Can also use Resource Group API
© 2022, Amazon Web Services, Inc. or its affiliates.
AWS TagEditor
Allow centralized orchestration of tagging enabling you to find resources in one or more AWS Regions.
You can choose up to 20 individual resource types, or build a query on All resource types.
Your query can include resources that already have tags, or resources that have no tags.
You can restrict permission to enable AWS TagEditor users to manage tags per specific services or resources.
© 2022, Amazon Web Services, Inc. or its affiliates.
Adding Tags
Find resources to tag
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Adding Tags
Bulk editing tags
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Adding Tags
© 2022, Amazon Web Services, Inc. or its affiliates.
Adding Tags
© 2022, Amazon Web Services, Inc. or its affiliates.
© 2022, Amazon Web Services, Inc. or its affiliates.
Cost Reporting using Tags
Example
© 2022, Amazon Web Services, Inc. or its affiliates.
Enabling Cost Allocation Tags
For Cost explorer reporting, Tags need to be enabled for Cost allocation
© 2022, Amazon Web Services, Inc. or its affiliates.
EC2 Console Review
• Test environment is scheduled from running 24x7 to a schedule named “uk-working-days”
running 24x5 (i.e. Monday to Friday 24 hours on)
• Prod environment is NOT scheduled and left running 24x7
© 2022, Amazon Web Services, Inc. or its affiliates.
Cost Explorer Console View. (1/3)
• Before the schedule is enabled we will see a flat report in cost explorer when
filtering by ApplicationID and grouping by EnvironmentID.
© 2022, Amazon Web Services, Inc. or its affiliates.
Cost Explorer Console View (2/3).
• After the schedule is implemented in the Test environment we can see the
Test workloads being shut down over weekends
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Cost Explorer Console View (3/3).
• In the below graph we can observe the evolution of Application2 before and after schedule
© 2022, Amazon Web Services, Inc. or its affiliates.
© 2022, Amazon Web Services, Inc. or its affiliates.
Tag Inheritance
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Tags Inheritance
Not available on all services
Example: creating an instance with tags on creation will automatically
create the same tags on the volumes associated with the instances
Creating a volume from an existing snapshot will not inherit the tags
from the volume
Copying a snapshot will loose the tags
© 2022, Amazon Web Services, Inc. or its affiliates.
Thank you!
© 2022, Amazon Web Services, Inc. or its affiliates.
© 2022, Amazon Web Services, Inc. or its affiliates.
© 2022, Amazon Web Services, Inc. or its affiliates.
Appendix
© 2022, Amazon Web Services, Inc. or its affiliates.
Example - EC2 Rightsizing lab
A walkthrough on best practices to track and assess results achieved with operational cost
optimization tuning.
In this lab we use:
• EC2 rightsizing recommendation to identify underutilized instance with opportunity of cost
saving.
• CloudWatch metrics to refine the recommendation
• Rightsizing Cost allocation TAGs
• Cost Explorer
© 2022, Amazon Web Services, Inc. or its affiliates.
EC2 Rightsizing lab
Step 1 - Define EC2 rightsizing related user defined Cost Allocation TAGs to enable the tracking of
progress in EC2 Rightsizing exercise.
Step 2 - Enable the tags as User Defined Billing Tags.
Note. The activation of user defined cost allocation tags will requires some time to have the tags
available in Cost Explorer. Usually 24 hours are required.
Tag Name Description Example Fundamental
Name Instance human readable indentifier MyTestInstance N
CostOptimizationID Cost Optimization session ID 2021-Q1-EC2-001 Y
RightSizingID Cost Optimization session ID for RightSizing recommendation 2021-04-07-M N
SourceInstanceType Current under utilized instance type m3.large Y
DestinationInstanceType Target instance type, tipically from EC2-RightSizing recommendation or Compute Optimizer m3.medium Y
© 2022, Amazon Web Services, Inc. or its affiliates.
EC2 Rightsizing lab
Step 3 - Start to look first at EC2 Rightsizing recommendation to spot rightsizing cost saving opportunities.
Step 4 - Vet the eligibility of the instance for a further downscale:
Review CPU and other main metrics (memory/EBS metrics) for a longer period than 14 days. Inquiry the operational team
to establish if any other usage that justify the current instance type. If underutilisation is confirmed apply the tags.
© 2022, Amazon Web Services, Inc. or its affiliates.
EC2 Rightsizing lab
Step 5 - Apply Rightsizing Cost Optimization TAGs to the instance.
Note
AWS Tag Editor can be used to enable you to create, modify and delete tags for EC2 instance resources accessing the AWS Tag
Editor console with the minimum permissions set granted: EC2 service read only, EC2 create/delete TAG,
ResourceGroupsandTagEditorFullAccess.
© 2022, Amazon Web Services, Inc. or its affiliates.
EC2 Rightsizing lab
Step 6 - Establish a baseline for the current instance size
Review the traceability of the the cost looking at Cost Explorer for EC2-Instances running hours using the RighsizingID
as filter.
© 2022, Amazon Web Services, Inc. or its affiliates.
EC2 Rightsizing lab
Step 7 - Apply the rightsizing recommendation
Leave the instance running for a proper time to gather significant number of data points. Scale down the instance
considering what advised by the recommendation.
Step 8 - Operational review to vet the new instance type performances are in the expected range
Review effective pressure on CPU and other significant metric for the case of usage to verify if the new
configuration is able to perform as required
© 2022, Amazon Web Services, Inc. or its affiliates.
EC2 Rightsizing lab
Step 9 - Visualize the cost trend history for your EC2 Rightsizing cost optimization exercise.
© 2022, Amazon Web Services, Inc. or its affiliates.
Cost per day of MyTest instance with rightsized instance type moved from 0.14
$/hour to 0.07 $/hour
~50% savings of EC2 compute costs
Conclusions
The rightsizing generated savings of 50% of the ec2 instances computing costs for
MyTest instance where the rightsizing recommendation has been applied.
EC2 Rightsizing lab - Outcome
© 2022, Amazon Web Services, Inc. or its affiliates.
EC2 Rightsizing lab - Conclusion
Using the RightSizingID cost allocation tags strategy is now possible track the effectiveness of
our cost optimization.
When the right sizing is in place, you might want update values
of SourceInstanceType and DestinationInstanceType tags to be equal and use this to exclude
those instances from further cost optimisation exercises.
The same approach can be used for other rightsizing recommendations as for instance EBS
recommendations from Amazon Compute Optimizer.
© 2022, Amazon Web Services, Inc. or its affiliates.
TagEditor permission example
• Full access for TagEditor: ResourceGroupsandTagEditorFullAccess
• Allow access to TagEditor and enable query functionality to find resources filtering per regions,
resource types and tags
• Read only access for EC2: AmazonEC2ReadOnlyAccess
• Required to provide access to EC2 configuration information
• EC2 Tag permissions required to create/update/delete tags for EC2 resources
{
"Version": "2012-10-17",
"Statement": [
{
"Sid": "VisualEditor0",
"Effect": "Allow",
"Action": [
"ec2:DeleteTags",
"ec2:CreateTags"
],
"Resource": "*"
}
]
}
© 2022, Amazon Web Services, Inc. or its affiliates.
Tags Policies compliance reports
Via cli and link
VIA S3 export
- s3 bucket must have appropriate permissions
- https://docs.aws.amazon.com/ARG/latest/userguide/tag-policies-
prereqs.html

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Cost Optimization - Tagging.pptx

  • 1. © 2022, Amazon Web Services, Inc. or its affiliates. © 2022, Amazon Web Services, Inc. or its affiliates. Techniques: Tagging Presenter Name, title & team Date AWS Cost Optimization Workshop
  • 2. © 2022, Amazon Web Services, Inc. or its affiliates. Agenda • Tag Taxonomy • Proactive vs Reactive Tag Governance • Proactive Tag Governance • Tags Policies • IAM or Organization Service Control Policies • AWS Config Rules • Reactive Tag Governance Tags Policies • AWS Config rules • Example Use Cases
  • 3. © 2022, Amazon Web Services, Inc. or its affiliates. Tagging is like exercising Everyone agrees it should be done … But it is hard to implement and keep consistent.
  • 4. © 2022, Amazon Web Services, Inc. or its affiliates. Tagging – Basic rules • Maximum number of tags per resource – 50 • Maximum active tags keys for Billing and Cost Management reports - 500 • For each resource, each tag key must be unique, and each tag key can have only one value. • Maximum key length – 128 Unicode characters in UTF-8 • Maximum value length – 256 Unicode characters in UTF-8 • Although EC2 allows for any character in its tags, other services are more restrictive. The allowed characters across services are: letters, numbers, and spaces representable in UTF-8, and the following characters: + - = . _ : / @. • Tag keys and values are case-sensitive. • The aws: prefix is reserved for AWS use. If a tag has a tag key with this prefix, then you can't edit or delete the tag's key or value. Tags with the aws: prefix do not count against your tags per resource limit.
  • 5. © 2022, Amazon Web Services, Inc. or its affiliates. Resource tags vs Cost Allocation tags • Cost allocations tags are a subset of resource tags that can be used for billing/financial purposes. • Cost allocation tags needs to be enabled in the billing console of the master account • It may take up to 24 hrs. to get cost allocation tags to show up on billing. Applies to line items on a going forward basis
  • 6. © 2022, Amazon Web Services, Inc. or its affiliates. Customer Tags and AWS-Generated Tags All tags with aws: as prefix are tags generated by AWS and are related to services in use The aws:createdBy is applied only to resources created after the tag was activated Those tags and the tags created by the customers needs to be activated in the billing console in order to be reflected in CUR and Cost Explorer. Best practice is to enable AWS-generated cost allocation tags
  • 7. © 2022, Amazon Web Services, Inc. or its affiliates. Tagging –Taxonomy example
  • 8. © 2022, Amazon Web Services, Inc. or its affiliates. What this presentation is focused on Basic Tagging categories: • Technical • Automation • Security • Business
  • 9. © 2022, Amazon Web Services, Inc. or its affiliates. Tagging – What happens if tagging is not enforced
  • 10. © 2022, Amazon Web Services, Inc. or its affiliates. Business Tag Taxonomy Benefits • Standardizes tags across accounts • Focus on business needs • Enables business insights Action • Agree a taxonomy with business stakeholders • Implement a proactive/reactive tagging strategy and a way to enforce it Tools • AWS Tags Policies • AWS Config Rules • AWS Service Control Policies (SCP) • AWS Tag Editor • Third party – with aws api
  • 11. © 2022, Amazon Web Services, Inc. or its affiliates. Example Taxonomy – real use case from large enterprise customers Tag Rationale Example ProjectId Identify the project running the application ProjectX ApplicationId Identify the application DataLakeX, RetailSiteX LayerId SubComponent / Layer DB Layer, Web, Layer BusinessUnitId Identify the business unit ArchitectureBusinessUnit, OperationBusinessUnit CostCenterId Identify the Cost Center EnvironmentId to identify the environment where the application is running Prod, Dev, Test RightSizingId Allows to track cost/hours of resources targeted for RS Q1 2018-6hexcode SourceInstanceType Defines the original instance type to be rightsized R5.8xlarge DestinationInstanceTyp e Defines the target instance type for the rightsizing R5.xlarge ArnId Track top resources by ARN unique identifiers TeamName/ID To identify a specific team/owner aws:createdBy AWS-Generated cost allocation tags AssumedRole:[Role Key ID]:DummyUser aws:* Anything with aws: prefix is automatically generated by aws EXAMPLE
  • 12. © 2022, Amazon Web Services, Inc. or its affiliates. Tagging – Lessons Learnt • Don’t overload tags, • i.e. Tag1: test1:awsenv2:12734:external • Enable them in PoCs • Agree a simple taxonomy • Specially important when multiple teams use the same account • Critical to allocate credits later on to report and chargeback • Ensure consistency in consolidated account families. • Use automation when possible to catch duplicates, misspellings, etc. • DBR and CUR are not retroactive, careful with yearly summaries if tagging was not implemented.
  • 13. © 2022, Amazon Web Services, Inc. or its affiliates. © 2022, Amazon Web Services, Inc. or its affiliates. Tag Enforcement
  • 14. © 2022, Amazon Web Services, Inc. or its affiliates. Proactive • Good for new workloads and when considering tags in the project design phase • Could break automation for existing workload • Can work only if the API’s support atomic operations (similar to SCP or IAM) • AWS Tools: Tag policies, AWS Organization SCP, IAM Policies, Service Catalog tags Tags - Proactive vs Reactive tags enforcement Reactive • Good for existing workloads • Possibility to have compliance reports to provide a list of non compliant resources to action, manually or automatically • Does not break existing automations • AWS Tools: Tag Editor, AWS Config rules, Custom lambdas Usually both methods need to be used for an effective Tag enforcement
  • 15. © 2022, Amazon Web Services, Inc. or its affiliates. Proactive Tag Enforcement AWS Organizations • SCP - Fine Grained Service Controlled Policies (Enforcement) • Tag Policies (Validation) Service Catalog • Incorporate tagging (TagOptions) as part of product catalog items Cloud Formation/Terraform • Enforce tagging through your CloudFormation/Terraform IAC scripts Note: Not all services support Tags and/or Tag enforcement. Services and resource types that support enforcement (open link)
  • 16. © 2022, Amazon Web Services, Inc. or its affiliates. Service Control Policies (Enforce) Service control policies (SCPs) are a type of organization policy (JSON) that you can use to manage permissions in your organization: • A set of actions • Their permissible values • Any constraints you want to place on the actions
  • 17. © 2022, Amazon Web Services, Inc. or its affiliates. Tag Policies (Validate) Tag policies are JSON files that define the following: • A set of tag keys • Their permissible values • Any constraints you want to place on the use of tags for the accounts in your organization Be aware that Tag Policies will allow resources without Tags. This is potentially addressed by enforcement through SCP / IAM policies.
  • 18. © 2022, Amazon Web Services, Inc. or its affiliates. Tag policies Tag policies blog Tag policies Limits
  • 19. © 2022, Amazon Web Services, Inc. or its affiliates. Tags Policies - disabled by default
  • 20. © 2022, Amazon Web Services, Inc. or its affiliates. Creating a tag policy
  • 21. © 2022, Amazon Web Services, Inc. or its affiliates. Create a tag policy (2)
  • 22. © 2022, Amazon Web Services, Inc. or its affiliates. Attach a tag policy Services and resource types that support enforcement
  • 23. © 2022, Amazon Web Services, Inc. or its affiliates. Tagging - Reactive Enforcement Tag Governance should identify non-compliant resources and optionally initiate a remediation action. Reactive TAG Enforcement (Compliance) • AWS Config rules • Required-tags (managed rule) • Set up custom rule •Tag Editor • Discover untagged/wrongly tagged assets • To bulk filter, add, and edit tags Can export resources and tags to csv Turning on cost allocation tags https://docs.aws.amazon.com/awsaccountbilling/latest/aboutv2/cost-alloc-tags.html
  • 24. © 2022, Amazon Web Services, Inc. or its affiliates. Example AWS Config Rules In this example AWS Config rules will use the managed rule “required-tags” to verify that every asset has been correctly tagged with a tag named CostCenter with allowed values 111 or 222. Any asset identified not having the required tag or the required values in the tag will be non-compliant.
  • 25. © 2022, Amazon Web Services, Inc. or its affiliates. Example AWS Config Rules From the EC2 console launch two EC2 instances in the same region as the rule, one with the CostCenter tag 111 and one without any tags. From the AWS Config console select the newly created rule and refresh it until it detects the creation events of the two new instances. Check the compliance status section of the rule where you should see 1 non-compliant instance and 1 compliant.
  • 26. © 2022, Amazon Web Services, Inc. or its affiliates. Example AWS Config Rules When identifying a non compliant asset one can choose a remediation action: You can edit the AWS Config Rule to add a remediation action for non-compliant assets. In this example the non- compliant EC2 instance will be stopped. Save the remediation action Go back to the rule compliance status and select the non- compliant resource. Select remediate.
  • 27. © 2022, Amazon Web Services, Inc. or its affiliates. Tag Editor  Actions to manage tagging:  Add  Edit  Delete  Search and manage the resources that you want to tag via search results  Can also use Resource Group API
  • 28. © 2022, Amazon Web Services, Inc. or its affiliates. AWS TagEditor Allow centralized orchestration of tagging enabling you to find resources in one or more AWS Regions. You can choose up to 20 individual resource types, or build a query on All resource types. Your query can include resources that already have tags, or resources that have no tags. You can restrict permission to enable AWS TagEditor users to manage tags per specific services or resources.
  • 29. © 2022, Amazon Web Services, Inc. or its affiliates. Adding Tags Find resources to tag
  • 30. © 2022, Amazon Web Services, Inc. or its affiliates. Adding Tags Bulk editing tags
  • 31. © 2022, Amazon Web Services, Inc. or its affiliates. Adding Tags
  • 32. © 2022, Amazon Web Services, Inc. or its affiliates. Adding Tags
  • 33. © 2022, Amazon Web Services, Inc. or its affiliates. © 2022, Amazon Web Services, Inc. or its affiliates. Cost Reporting using Tags Example
  • 34. © 2022, Amazon Web Services, Inc. or its affiliates. Enabling Cost Allocation Tags For Cost explorer reporting, Tags need to be enabled for Cost allocation
  • 35. © 2022, Amazon Web Services, Inc. or its affiliates. EC2 Console Review • Test environment is scheduled from running 24x7 to a schedule named “uk-working-days” running 24x5 (i.e. Monday to Friday 24 hours on) • Prod environment is NOT scheduled and left running 24x7
  • 36. © 2022, Amazon Web Services, Inc. or its affiliates. Cost Explorer Console View. (1/3) • Before the schedule is enabled we will see a flat report in cost explorer when filtering by ApplicationID and grouping by EnvironmentID.
  • 37. © 2022, Amazon Web Services, Inc. or its affiliates. Cost Explorer Console View (2/3). • After the schedule is implemented in the Test environment we can see the Test workloads being shut down over weekends
  • 38. © 2022, Amazon Web Services, Inc. or its affiliates. Cost Explorer Console View (3/3). • In the below graph we can observe the evolution of Application2 before and after schedule
  • 39. © 2022, Amazon Web Services, Inc. or its affiliates. © 2022, Amazon Web Services, Inc. or its affiliates. Tag Inheritance
  • 40. © 2022, Amazon Web Services, Inc. or its affiliates. Tags Inheritance Not available on all services Example: creating an instance with tags on creation will automatically create the same tags on the volumes associated with the instances Creating a volume from an existing snapshot will not inherit the tags from the volume Copying a snapshot will loose the tags
  • 41. © 2022, Amazon Web Services, Inc. or its affiliates. Thank you! © 2022, Amazon Web Services, Inc. or its affiliates.
  • 42. © 2022, Amazon Web Services, Inc. or its affiliates. © 2022, Amazon Web Services, Inc. or its affiliates. Appendix
  • 43. © 2022, Amazon Web Services, Inc. or its affiliates. Example - EC2 Rightsizing lab A walkthrough on best practices to track and assess results achieved with operational cost optimization tuning. In this lab we use: • EC2 rightsizing recommendation to identify underutilized instance with opportunity of cost saving. • CloudWatch metrics to refine the recommendation • Rightsizing Cost allocation TAGs • Cost Explorer
  • 44. © 2022, Amazon Web Services, Inc. or its affiliates. EC2 Rightsizing lab Step 1 - Define EC2 rightsizing related user defined Cost Allocation TAGs to enable the tracking of progress in EC2 Rightsizing exercise. Step 2 - Enable the tags as User Defined Billing Tags. Note. The activation of user defined cost allocation tags will requires some time to have the tags available in Cost Explorer. Usually 24 hours are required. Tag Name Description Example Fundamental Name Instance human readable indentifier MyTestInstance N CostOptimizationID Cost Optimization session ID 2021-Q1-EC2-001 Y RightSizingID Cost Optimization session ID for RightSizing recommendation 2021-04-07-M N SourceInstanceType Current under utilized instance type m3.large Y DestinationInstanceType Target instance type, tipically from EC2-RightSizing recommendation or Compute Optimizer m3.medium Y
  • 45. © 2022, Amazon Web Services, Inc. or its affiliates. EC2 Rightsizing lab Step 3 - Start to look first at EC2 Rightsizing recommendation to spot rightsizing cost saving opportunities. Step 4 - Vet the eligibility of the instance for a further downscale: Review CPU and other main metrics (memory/EBS metrics) for a longer period than 14 days. Inquiry the operational team to establish if any other usage that justify the current instance type. If underutilisation is confirmed apply the tags.
  • 46. © 2022, Amazon Web Services, Inc. or its affiliates. EC2 Rightsizing lab Step 5 - Apply Rightsizing Cost Optimization TAGs to the instance. Note AWS Tag Editor can be used to enable you to create, modify and delete tags for EC2 instance resources accessing the AWS Tag Editor console with the minimum permissions set granted: EC2 service read only, EC2 create/delete TAG, ResourceGroupsandTagEditorFullAccess.
  • 47. © 2022, Amazon Web Services, Inc. or its affiliates. EC2 Rightsizing lab Step 6 - Establish a baseline for the current instance size Review the traceability of the the cost looking at Cost Explorer for EC2-Instances running hours using the RighsizingID as filter.
  • 48. © 2022, Amazon Web Services, Inc. or its affiliates. EC2 Rightsizing lab Step 7 - Apply the rightsizing recommendation Leave the instance running for a proper time to gather significant number of data points. Scale down the instance considering what advised by the recommendation. Step 8 - Operational review to vet the new instance type performances are in the expected range Review effective pressure on CPU and other significant metric for the case of usage to verify if the new configuration is able to perform as required
  • 49. © 2022, Amazon Web Services, Inc. or its affiliates. EC2 Rightsizing lab Step 9 - Visualize the cost trend history for your EC2 Rightsizing cost optimization exercise.
  • 50. © 2022, Amazon Web Services, Inc. or its affiliates. Cost per day of MyTest instance with rightsized instance type moved from 0.14 $/hour to 0.07 $/hour ~50% savings of EC2 compute costs Conclusions The rightsizing generated savings of 50% of the ec2 instances computing costs for MyTest instance where the rightsizing recommendation has been applied. EC2 Rightsizing lab - Outcome
  • 51. © 2022, Amazon Web Services, Inc. or its affiliates. EC2 Rightsizing lab - Conclusion Using the RightSizingID cost allocation tags strategy is now possible track the effectiveness of our cost optimization. When the right sizing is in place, you might want update values of SourceInstanceType and DestinationInstanceType tags to be equal and use this to exclude those instances from further cost optimisation exercises. The same approach can be used for other rightsizing recommendations as for instance EBS recommendations from Amazon Compute Optimizer.
  • 52. © 2022, Amazon Web Services, Inc. or its affiliates. TagEditor permission example • Full access for TagEditor: ResourceGroupsandTagEditorFullAccess • Allow access to TagEditor and enable query functionality to find resources filtering per regions, resource types and tags • Read only access for EC2: AmazonEC2ReadOnlyAccess • Required to provide access to EC2 configuration information • EC2 Tag permissions required to create/update/delete tags for EC2 resources { "Version": "2012-10-17", "Statement": [ { "Sid": "VisualEditor0", "Effect": "Allow", "Action": [ "ec2:DeleteTags", "ec2:CreateTags" ], "Resource": "*" } ] }
  • 53. © 2022, Amazon Web Services, Inc. or its affiliates. Tags Policies compliance reports Via cli and link VIA S3 export - s3 bucket must have appropriate permissions - https://docs.aws.amazon.com/ARG/latest/userguide/tag-policies- prereqs.html

Editor's Notes

  1. 2022 March Update Venkatesh Ramanathan – venkyram@amazon.com 2021 update Luca Marozzini – marozzin@amazon.com Enrico Bonaccorsi – bonaccor@amazon.com Francesc Sala – franrius@amazon.com
  2. Check in …
  3. Do aws-generated tags count against this limit? No https://docs.aws.amazon.com/awsaccountbilling/latest/aboutv2/allocation-tag-restrictions.html
  4. generated tags consistency is managed by AWS generated tags doesn't count for 50 tags limit
  5. Space – will not work SCP – does not allow spaces
  6. Not retroactive Tag to identify the project running the application (i.e ProjectID) A project is a defined scope of work to achieve a business objective. Tag to identify the application (i.e. unique ApplicationID) several applications might be part of the same project Tag SubComponent / Layer / Role (i.e LayerID) an application is composed of several layers - for which some might be shared with other applications, i.e. web layer, db layer) Tag to identify the business unit (i.e. unique businessUnitID) Tag to identify the CostCenter unit (i.e. unique CostCenterID) Tag to identify the environment where the application is running (EnvironmentId, →prod, test, dev, etc) Tag to identify the Schedule - usage of unique identifiers is required, allows to report on scheduled vs non-scheduled workloads. Tag to identify Rightsizing effort -Allows to track cost/hours of resources targeted for RS (Evolution of opportunity cost) RightSizing ID : Q1 2018-6hexcode SourceInstanceType: m3.xlarge DestinationInstanceType m5.xlarge Tag to replicate the ARN of the resource - i.e. Allows to track the most expensive resources inside a specific ApplicationID Billing Auto Tags need to be enabled via billing consoles, If you use automation, for example cloudformations, enable automation tags to billing tags i.e. aws:stack-id activated as a billing tag
  7. Brainstorm Proactive good for new environment Proactive can break if automation is already in place Proactive can work only if the api support atomic operations (via scp or iam) Reactive is easier
  8.   TIMING: 2 min – lecture/Discussion To enforce tagging and to block resources you can implement Service Control Policies to prevent deployment if it’s missing tags, and Tag Policies to control values for tags. You can create and apply Tag Policies and apply them to any desired AWS accounts or OUs within your Organization, or to the the entire Organization. The policies at each level are aggregated into an effective policy for an account. Each tag policy contains a set of tag rules. Each rule maps a tag key to the allowable values for the key. The tag policies are checked when you perform operations that affect the tags on an existing resource. After you set up your tag policies, you can easily discover tagged resources that do not conform. Service Catalog enforcement - https://docs.aws.amazon.com/servicecatalog/latest/adminguide/tagoption-policies.html CFN/Terraform enforcement - https://dev.to/toeknee123/using-terraform-and-aws-cloudformation-to-enforce-your-aws-tags-4ih2
  9. You can create and apply Tag Policies and apply them to any desired AWS accounts or OUs within your AWS Organization or to the entire org. The policies at each level are aggregated into an effective policy for an account. Each tag policy contains a set of tag rules. Each rule maps a tag key to the allowable values for the key. The tag policies are checked when you perform operations that affect the tags on an existing resource. After you set up your tag policies, you can easily discover tagged resources that do not conform, which can help you maintain consistent tags across your organization's resources. Tag policies are JSON files that define the following: • A set of tag keys • Their permissible values • Any constraints you want to place on the use of tags for the accounts in your organization
  10. +Check in
  11. Lets move on to how to enforce your tagging in a more reactive manner You can assign tags to your AWS Config resources for cost allocation and access control. Tagging is available for AWS Config resources that describe AWS Config rules and multi-account, multi-region Aggregators with AWS Config. You can add, remove or list tags for your AWS Config resources using the available APIs. You can also use tag editor to Discover untagged/wrongly tagged assets and To bulk filter, add, and edit tags
  12. Tag Editor o   You can add tags to resources when you create the resource. You can use the aws service console or API to add, change, or remove those tags one resource at a time. To add tags to—or edit or delete tags of—multiple resources at once, use Tag Editor.    With Tag Editor, you search for the resources that you want to tag, and then manage tags for the resources in your search results o   You can also use the Resource Group Tagging API to tag via API as opposed to tagging in the Tag Editor Console After you have found the resources that you want to tag, you can add, remove, and edit the tags for some or all of your search results. Tag Editor shows you any tags that have been added to resources, whether those tags were added in Tag Editor or by using the resource's service console or API.
  13. Tag Editor permissions can be configured to allow users/roles to create/delete/update tags for resources with minimum permission set. The presenter deliver quick demo to show how to: find resources with a specific tag find resources without a specific tag Tag Editor scope is in the account (no multi account), use Tag Policies to manage tags across multiple accounts https://aws.amazon.com/blogs/aws/new-use-tag-policies-to-manage-tags-across-multiple-aws-accounts/ References: KC Video with Tag Editor demo: https://www.youtube.com/watch?v=MX9DaAQS15I minutes 31:07 – 36:00 See appendix for an example of policy configuration to enable tagging management for EC2 resources only https://docs.aws.amazon.com/ARG/latest/userguide/tag-editor.html
  14. As you saw you can add edit or delete multiple resources tags at once. Well show you an example of how to add. You can use Tag Editor to add tags to selected resources that are in the results of your Find resources to tag query in the console. This screenshot shows the results of your Find resources to tag query. select the check boxes next to the resources you want to add tags to. Enter a text string in Filter resources to filter for part of a resource's name, ID, tag keys, or tag values. In the Tags column, note that resources in the results already have tags applied to them. In the following example, the first selected EC2 instance already has two tags. Choose Manage tags of the selected resources.
  15. Once we have chosen the Manage tags of the selected resources we will be presented the Manage tags page, You CAN view the tags on the resources that you selected. Although your original query returned more resources, note that you are adding tags only to the resources that you selected as shown here you will then have an option to  Add tag.
  16. Enter a tag key and an optional tag value. In this walkthrough, we add the tag key Team and the tag value Development. A resource can have a maximum of 50 user-applied tags. You might not be able to add new tags to a resource if you are approaching 50 user-applied tags. Typically, read-only system tags do not apply to the 50-tag limit. Tag keys must also be unique within your selected resources. You cannot add a new tag with a key that matches an existing tag key in your selected resources. When you are finished adding tags, choose Review and apply changes. If you accept the changes, choose Apply changes to all selected. Depending on the number of resources you selected, applying new tags can take a few minutes. Do not leave the page or open a different page in the same browser tab. If changes were successful, a green success banner is displayed at the top of the page.
  17. You can see here tagging is also very useful when it comes to visualizing and monitoring In this example we were able to filter our cost explorer report by the specific application (APP2) and the environment spun up (test/dev) Without tagging enabled we wouldn’t be able to create a report this granular
  18. TIMING: 5 min – Discussion Say: Having the tag taxonomy deployed across all the AWS workloads this example will show how to calculate the EC2 compute savings incurred after the implementation of the below scheduling policy in a generic two tier application named Application2 with Prod and Test environments : In the image Application2 has the tag taxonomy implemented and we will focus on the two following tags to monitor and calculate savings in this example: ApplicationID EnvironmentID
  19. TIMING: 2 min – Discussion Say: Before the schedule is enabled we will see a flat report in cost explorer when filtering by ApplicationID and grouping by EnvironmentID.
  20. TIMING: 2 min – Discussion Say: After the schedule is implemented in the Test environment we can see the Test workloads being shut down over weekends
  21.   TIMING: 2 min – Discussion Say: In the below graph we can observe the evolution of Application2 before and after schedule.      
  22. Could the issue be that there is no standard
  23. Tagging 2022 March Update – Content/new format updates Venkatesh Ramanathan – venkyram@amazon.com 2021 Content update Luca Marozzini – marozzin@amazon.com Enrico Bonaccorsi – bonaccor@amazon.com Francesc Sala – franrius@amazon.com
  24. How to use billing tags to track Cost Optimization efforts and result. An example for EC2 rightsizing recommendations. The target is being able to track and assess results achieved with operational cost optimization tuning like EC2 rightsizing cost optimization from EC2 recommendations. Clarify differences between AWS Anomaly Detection (48 hours, but with not details on resources or how to optimize) and Rightsizing recommendation (14 days with recommendations)
  25. Note. The presenter briefly explains what is the scope of each tag, clarify why the granularity of the RightSizingID is not mandatory.
  26. Note. Consider if worth to add slides related to how to refine the recommendation with screenshot from CW console for longer period of observation and additional metrics. In this first example we are conservative opting for “Within the same instance family”, this is intended to stimulate the discussion about previous generations vs new generations. Clarify regarding Cost Anomaly detection that could be able to spot cost saving opportunity for rightsizing before 14 days minimum period required by Rightsizing recommendations.
  27. 2021-04-15 last review Note. Consider if worth to add slides related to how to define proper permission for tag editor to enable Tag editor full access + EC2 tag create/delete access only. This enable user/roles to minimum permission required to edit/create/delete tags only for EC2 resources.
  28. The less you know about the work-load the longer the baseline could be. 1 full day, midnight to midnight hours would be the minimum term (CE) Leave the instance running for the time required to gather the baseline metrics. Depending by the shape of the history trends this could vary since around few hours up to a week or more. You want to capture events that happened in the past.
  29. Discuss about recommendations available per single instance. Advise to refine the recommendation based on additional insight the technical team may have. Clarify regarding availability of 4 different degrees of recommendation provided by the Rightsizing feature. Note. to add slides for CloudWatch metrics review.
  30. You can easily visualize the history of cost and usage for the EC2 instance using the following filters and group by combination in Amazon Cost Explorer. Apply filters for: Service = EC2-Instances Usage Type Group = EC2: Running Hours Tag:CostOptimizationID in our example 2021-Q1-EC2-001 Group by: Instance Type
  31. TIMING: 4 min – Discussion Say: In the below graph we can observe the evolution of Application2 before and after schedule.
  32. Using the RightsizeId billing tags strategy is now possible track the effectiveness of our cost optimization being able to correlate the cost and usage of the instance with the instance type adopted time by time. It's advised to not remove the current cost allocation tagging as could be used as baseline in the event further cost optimizations will be required for the same resource. When you find out the optimal instance size to scale you might want update values of either SourceInstanceType and DestinationInstanceType to be equal. You might use the condition having both this cost optimisation tags with the same value to exclude those instances from further cost optimisation exercises.