The Unexpected Truth: Cost Is Determined by Architectural Decisions
• The main factor influencing cloud expenses is architectural decisions rather than underutilized Elastic IPs or development environments.
• Decisions made in production settings, not wasted resources in production, determine costs.
• The true path to cost optimization starts with pinpointing the precise technical cost drivers inside your design and lowering their running costs.
• Knowing cost drivers entails knowing how information moves through the system and what influences price changes.
• Any system that levies fees according to metered usage requires an understanding of the behaviors and cost drivers.
The majority of cost management initiatives fail.
• Because of misconceptions about the nature of the cost management issue, many firms make inefficient attempts at cost control.
• Day-to-day position responsibilities frequently center on inefficient activities like tracking down idle resources and overseeing Reserved Instances and Savings Plans (RIs/SPs) coverage and consumption.
• Although idle resources are not a major issue, controlling them is typically outside of day-to-day operations, therefore RIs and SPs should be the last thing taken into account in cost management efforts.
The way you think about engineering, it's not paying attention.
• Most attempts at cost management operate under the assumption that engineers have made all the appropriate decisions to create systems that are both economical and cost-aware.
• The purpose of hiring engineers is to generate value and functionality for consumers; cost optimization is a secondary responsibility.
Inadequate Staffing in Cost Management Positions
• Many companies fill cost management positions with individuals with financial backgrounds.
· An engineer is required to address engineering problems; finance cannot do it on its own.
• While not in cost-cutting, finance plays a critical role in managing AWS spend.
SaaS Tools for Cost Management are Just Part of the Solution
• When businesses implement solutions such as Cloudability or CloudHealth, they frequently assume that their cloud expenses are covered.
• The most significant component of the cloud financial solution is not software; it is merely one component.
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