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FinOps: Tags / Labels / Resource Groups

1 min read

Objective  #

Tagging technical components has several uses. The immediate use is for documentation, since the tag is metadata. Tags can be used to register the component owner, permissions, some observations and even parameters that an external script would use. From a FinOps perspective , the tag is used to create classifications and perform cost showback and chargeback with business sense. This document describes the best strategies and precautions that should be taken within your technical architecture with FinOps objectives, as well as how to best use Cloud8 to achieve this goal. 

Use Cases / Opportunity  #

It is much more common to look at cloud costs from a technical point of view. Understanding the services with all their technical complexity, looking at the items and IDs that cost the most and looking for actions that can reduce these costs found. 

But we cannot forget that there is an opportunity to look at costs as a business and bring visibility and management beyond the technical side. The correct application of a business process and constant monitoring will bring enormous benefits to those involved. 

Use Case Example #

Alignment with business budgets . Suppose that at the beginning of the year budgets were defined for all the company’s cost centers. The department responsible for managing the Cloud could/should define a process for generating tags for all components. Then, how to monitor the evolution of budgets and deviations, as well as ensure that the dynamism of changes in the environments does not distort the overall configuration with untagged components or with incorrect and poorly classified tags. 

In budget reports, it would be possible to show how much each “cost center” (in addition to the IT cost center itself) consumed in terms of resources. For example, part of the cost went to Marketing, Product A/B/C, Innovation, another part to internal IT costs, and so on. Beneficial developments from this scenario: 

  • The finance department decides whether or not this cost allocation is passed on to those responsible; 
  • IT gains insight into what is ‘purely’ IT cost – support, development environment, etc; 
  • Innovation cost can be measured separately; 
  • Marketing costs such as campaigns, infrastructure usage peaks, data transfer, etc. become clearer and more traceable; 
  • Budget deviations are more easily explained. At the end of the period, deviations are accounted for independently. For example: my budget for the “IT” cost center of US$10,000.00 was OK, but there was US$2,000.00 in the “Innovation” cost center that was not foreseen and aligned with the requesting department XPTO; 
  • Ultimately, IT becomes a partner of the business area. 

Content – ​​Tags / Labels / Resource Groups #

  • Purpose and Use Cases
  • Tags and usage
  • Reports / Alerts / Budgets
  • Cost Anomalies
  • View Tagged/Untagged Resources
  • Tag Sanitization, Compliance and MultiCloud
  • Tag Sharing and Value Allocation
  • Reverse API


You may want to check these Docs too: #

  • Using Cloud8 Insights
  • S3 Lambda Notification Processor (deploy via CLI)
  • Exporting data to Azure Storage Account
  • FinOps: Tags and Usage
  • FinOps: Reports, Alerts and Budgets
Finops, Label, Resource Group, Tag
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Table of Contents
  • Objective 
  • Use Cases / Opportunity 
    • Use Case Example
  • Content – ​​Tags / Labels / Resource Groups
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