Gartner Research

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

Published: 20 November 2017

ID: G00336254

Analyst(s): Marco Meinardi


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.

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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