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Implementing an effective chargeback strategy with Savings Plans

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Content level: Advanced
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This post discusses how you can use AWS Cost and Usage Reports and Amazon Athena to create an effective chargeback model

You can use AWS to share Savings Plan discounts across accounts that are part of your organization in AWS Organizations. When you manage multiple AWS accounts within your organization, you might need to implement a system that appropriately distributes the costs of AWS Savings Plans across all teams. You need a robust chargeback strategy that provides accurate cost allocation and offers visibility into savings. Based on extensive experience with customers across industries, AWS Support suggests a structured chargeback approach. This approach maximizes Savings Plans benefits and maintains accurate cost distribution.

For more information, see AWS Savings Plans: How to implement an effective chargeback strategy. This blog post demonstrates how to use AWS Cost and Usage Reports and Athena to create an effective chargeback model. With this model, you can accurately calculate and allocate monthly charges for centrally purchased Savings Plans across your linked accounts. You can also track cost savings for each individual account, and identify underutilized Savings Plans to optimize your investments.

AWS Cloud Support Engineers and Technical Account Managers (TAMs) can help you with general guidance, best practices, troubleshooting, and operational support on AWS. To learn more about our plans and offerings, see AWS Support. To learn more about the suggested solution, contact your TAM or AWS account team.

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A new 300-level hands-on lab in Workshop Studio was published this week: "Handling Savings Plan (SP) and Reserved Instance (RI) Chargeback, Showback, and Cost Allocation." This lab provides step-by-step guidance on developing a cost allocation strategy for SPs and RIs that are shared across your AWS Organization, using AWS Cost and Usage Report (CUR) data.

Key Objectives:

  • Understand how SPs and RIs appear in billing artifacts and CUR/Data Exports
  • Learn cost allocation strategies, along with their opportunities and limitations
  • Implement a mechanism to allocate shared SP/RI spend effectively

Access the lab here: https://catalog.workshops.aws/spandri-cost-allocation/en-US

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replied a year ago