Book Image

AWS FinOps Simplified

By : Peter Chung
Book Image

AWS FinOps Simplified

By: Peter Chung

Overview of this book

Much like how DevOps is a combination of cultural philosophies, practices, and tools that advocate a collaborative working relationship between development and IT operations, FinOps encourages the same collaboration between technology and finance team, making it key relationship to establish and maintain for any thriving business. This book will help you understand how organizations with a mature FinOps practice can decentralize cost ownership to developer teams and encourage cross-functional collaboration between business, finance, and technology, enabling speed, innovation, and business growth. You’ll focus on structuring your organization to form the right FinOps team, including a Cloud Center of Excellence, and learn how to implement practical cost savings measures with AWS tools to optimize costs in both the short as well as long term. By the end of this cloud FinOps book, you’ll be ready to implement a successful Cloud FinOps practice for your organization to get the best value from the AWS cloud for your workloads.
Table of Contents (18 chapters)
Free Chapter
2
Part 1: Managing Your AWS Inventory
7
Part 2: Optimizing Your AWS Resources
12
Part 3: Operationalizing FinOps

Understanding billing with AWS Organizations

When you operate with AWS Organizations, you receive one aggregated bill that shows usage for every account in your organization. AWS calls this consolidated billing. This consolidated bill shows both aggregated usage for the organization and usage per account, enabling you to conduct proper chargeback mechanisms or create showbacks for visibility.

Important note

In information technology (IT), a chargeback is the practice of charging business units (BUs) for their IT usage, whereas a showback is the practice of showing BUs their spending but internally reconciling from a central budget.

If your business requires separate bills for every AWS account, then you should not combine accounts with AWS Organizations. This, however, prohibits you from taking advantage of volume-tier discounts, which will help reduce costs.

Some services in AWS provide a volume-based discount—the more you use, the better the deal. With consolidated...