Governance for Cost

Introduction

Cost governance in AWS is crucial for organizations looking to optimize their cloud expenditures. This lesson will explore key concepts, best practices, and provide a step-by-step guide to implement effective governance for cost management in data engineering projects on AWS.

Key Concepts

• Cost Management: Understanding how to monitor and control cloud spending.
• Resource Tagging: Using tags for tracking costs associated with specific projects or departments.
• Budgets and Alerts: Setting up budgets in AWS to receive alerts when costs exceed predefined limits.
• Cost Allocation: Utilizing AWS Cost Explorer and AWS Budgets for detailed cost management and reporting.

Best Practices

1. Establish a tagging strategy to categorize resources.
2. Use AWS Cost Explorer to analyze spending patterns.
3. Implement budgets to set spending limits.
4. Utilize Reserved Instances and Savings Plans for predictable workloads.
5. Regularly conduct cost audits and reviews.

Step-by-Step Guide

Setting Up Cost Governance

1. Log in to the AWS Management Console.
2. Navigate to the Billing and Cost Management dashboard.
3. Create and apply resource tags to all AWS resources.
4. Set up an AWS Budget:
   a. Select 'Budgets' from the left navigation pane.
   b. Click on 'Create budget' and follow the wizard.
5. Monitor costs using AWS Cost Explorer.
6. Set alerts for budget thresholds.
            

FAQs