Public cloud costs are buried in monthly billing detail across multiple accounts and providers, business units, and teams. As a result, IT leaders do not have visibility into the total cost of supporting technology services and cannot make informed decisions about the most effective use of the public cloud.
Indirect costs of public cloud (physical labor, software, security, and other non-provider costs required to deploy and maintain services) aren’t in a cloud provider’s bill—and neither is data about consumption by business stakeholders. Without fully burdening public cloud costs (direct and indirect) and tracking consumption by business units, you’ll struggle to get the “most bang for your cloud service buck.”
Challenges with cloud cost management
Overwhelming billing detail hinders spend analysis
Infrastructure and Operations (I&O) leaders optimize public cloud spend by monitoring consumption, but cloud bills runs to thousands of lines of data and are overwhelming. I&O need to distill bill detail into action, such as when to recommend Reserved Instance (RI) purchases vs. leveraging spot instance pricing.
Business Units consume cloud like it’s free
Although cloud providers offer instance tagging to identify business purpose, tags are often poorly structured and sporadically populated. Without mapping of public cloud services to business units and applications, business units are unaccountable for their public cloud spend. They have no incentive to curb or curtail cloud spend—leading to waste, sprawl, and consumption of public cloud like it’s free.
When consumption is scattered due to fragmented purchasing across the organization, cloud OpEx spend accelerates without warning—leading to budget and resource constraints.
Under- or over-utilized instances in multi-cloud lead to waste
When every cloud provider has different service offerings and billing structures, it’s impossible to compare costs in a multi-cloud world. A singular provider view of public cloud (AWS Cost Explorer or Azure Cost Management) doesn’t serve the needs of multi-cloud organizations. Without a common view that spans cloud providers, organizations rely on estimates for optimal numbers of instances, sizes, and service level of public cloud services—leading to waste.
Hidden cloud costs lead to disappointing migration value
I&O leaders struggle to build defensible migration plans because they cannot compare between cloud providers and existing on-premises options. Instead, decisions are made based only on cloud provider pricing without a view of related support costs such as labor. Consequently, companies migrate their apps to the cloud (lift-and-shift, re-architect) but have no way to gauge whether they’ve achieved their migration targets.
Required capabilities for public cloud management
Eliminate confusion from overwhelming cloud bills
- Automate ingestion and aggregation of public cloud bills
- Auto-map multi-cloud billing to standard classification of IT services
- Track public cloud spend by app across dev/test/prod environments
Quit using cloud provider pricing to make migration decisions
- Incorporate cost of labor and security
- Allocate fully burdened costs to consuming applications and services
Avoid surprises that lead to cloud budget overruns
- Monitor cloud cost and usage with real-time spend analysis and forecasting
- View AWS reserved instance inventory, spend, and expirations
Prevent the business from consuming public cloud like it’s free
- Standardize best-practice tagging strategy to track business purpose
- Automatically parse tags in billing detail to map to consuming apps and business units
Slash waste from underutilized or idle instances
- Analyze potential cost savings from underutilized or inefficiently deployed resources
- Recommend AWS Reserved Instance (RI) purchases based on actual usage and consumption
Apptio® Cloud Cost Management provides IT leaders with real-time clarity into total public cloud spending to drive accountability for cloud consumption, optimize purchase decisions, and more efficiently utilize public cloud resources.
With Apptio Cloud Cost Management, you:
- Understand costs and usage to avoid surprises and drive accountability
- Manage consumption by infra, app, and business units to make better decisions
- Optimize resources by taking action on underutilized and idle instances
Apptio Cloud Cost Management is the only solution that automatically maps cloud costs to an industry-standard framework of IT services and can be extended to on-premises assets and IT services for full analysis and comparisons.
Unlike other cloud expense solutions, Apptio provides its users with several distinct and unique features, including TBM Taxonomy mapping allowing for a fully burdened view of cloud spending based on industry approved standard classification of IT services (i.e. labor, network, security).
When paired with Apptio Cost Transparency, users reduce the complexity and time to explain and view public cloud costs alongside hybrid infrastructure investments.