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In the previous chapter we looked extensively at the FinOps processes and how we can implement these in an organization. We also looked at how costs are generated in the various cloud platforms by evaluating provisioning of resources. Now we have to make sure that costs are allocated in the right way and that these are booked at the right level in the organization.
This chapter we will learn how to develop and implement a cost model that allows for showback and chargeback in our organization, allowing to identify cloud costs and allocate these to the budgets of teams or units. Before we do that, we must understand the principle of cost coverage, the type of costs in cloud and how rates are set by providers.
In this chapter, we're going to cover the following topics:
- Evaluating type of cloud costs
- Building a cost model
- Working principles of showback and chargeback