Gartner Research

How to Manage Public Cloud Costs on Amazon Web Services and Microsoft Azure


Organizations using public cloud IaaS and PaaS overspend due to lack of budgeting, tracking and optimization processes. This guidance describes how technical professionals can establish a consistent multicloud cost governance model and how to enforce it with appropriate tools.

Published: 20 November 2017

ID: G00336254

Analyst(s): Marco Meinardi

Table Of Contents

Problem Statement

The Gartner Approach

The Guidance Framework

  • Prework
    • Define Process Ownership and Spending Accountability
    • Become Familiar With Providers' Billing Mechanisms
  • Framework for Public Cloud Cost Management
    • Step 1: Plan — Creating a Cloud Forecast
    • Step 2: Track — Gain Visibility Into Spend
    • Step 3: Reduce — Eliminate Resources That Waste Spending
    • Step 4: Optimize — Leverage Discounts and Optimize Workloads
    • Step 5: Mature — Improve and Expand Cost Management Processes
  • Follow Up
  • Appendix
    • PAYG Versus Commitment-Based Models
    • Providers' Price Lists
    • Providers' Pricing Models
    • Providers' Account Structure and Hierarchy
    • Resource Tagging and Why It Is Important

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