On this episode of Cloud Cost Optimization, Nick and Jason dive into chargeback and (also known as showback and billback) the strategies you can deploy to implement it. It is crucial to first understand how your cost is allocated as cutting corners may have unforeseen consequences. In fact, it is also suggested that allocating costs across different departments can help to shift the focus from cost-cutting to revenue growth. HIGHLIGHTS Defining and understanding chargeback and cost allocation Techniques for cost allocation or splitting up the environment How to allocate share costs and resources in a business
On this episode of Cloud Cost Optimization, Nick and Jason dive into chargeback and (also known as showback and billback) the strategies you can deploy to implement it.
It is crucial to first understand how your cost is allocated as cutting corners may have unforeseen consequences. In fact, it is also suggested that allocating costs across different departments can help to shift the focus from cost-cutting to revenue growth.
HIGHLIGHTS
QUOTES
Defining chargeback and a use case example - Jason: "It's the ability to accurately allocate costs to the units in your business, which are contextual to you. So if I'm a service provider and I'm managing my public cloud environments for my customers, I may want to be able to accurately show how much they're spending so that I can invoice them and charge them whatever my fee is for an organization."
Make better decisions by knowing what your shared costs are - Jason: "A lot of shared costs are a concern but, if you look at it, a lot of companies don't know what their shared costs are. They just know they have a bunch of shared stuff out there so they're concerned about making sure it gets allocated. But is it because they just don't know what the number is? Or is it because they really need to make sure that, that those shared costs get allocated?"
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