Lets first understand why tracking shared cloud cost is important?
- Average - 35% of cloud expenses are shared costs
- For some organizations - they can go up to 80%
- Unmanaged shared costs can inflate your cloud bill by a whopping 30%
This is precisely why you should pay attention to shared cloud costs! But, now you must be wondering how to manage shared cloud costs?
Don't worry, because just like Jerry always outsmarts Tom, there are smart strategies to handle shared cloud costs effectively.
Imagine Tom and Jerry sharing a giant cheese wheel. How would they split it fairly? Here are 3 ways they could do it:
- Even Split: This is like dividing the cheese wheel into two equal halves, no matter who ate more. It's simple, but might not be fair if one team uses the cloud much more than the other.
- Fixed Proportion: This is like giving Jerry a smaller slice because he's, well, a mouse! Here, each team gets a fixed percentage of the cheese based on their usual consumption.
- Variable Proportion: This is like splitting the cheese between Tom and Jerry in 2:1 ratio, because their fitness bands show that Jerry has taken 2000 steps todays, where as Tom's count is only 1000 steps. Here, the proportion of cheese each gets changes based on their actual usage that day/month.
The Right Solution is Unique to Your Organization. There's no one-size-fits-all answer, just like there's no one way to split the cheese wheel perfectly between Tom and Jerry. The best strategy for your company depends on various factors like team sizes, usage patterns, and project requirements.
The key takeaway is to find a solution that encourages ownership within the organization. This will ensure everyone is accountable for their cloud usage, just like Tom and Jerry are always responsible for the chaos they create!
For details, refer - https://www.finops.org/wg/identifying-shared-costs/
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