Title

AWS re:Invent 2022 - Simplify your AWS cost estimation (COP205)

Summary

Bina Khimani and Keith Jarrett presented on simplifying AWS cost estimation and forecasting, with insights from Intuit's experience.
The session covered the importance of cost governance, establishing baselines, planning, forecasting, and evaluating spend.
Tools like AWS Pricing Calculator and Migration Evaluator were discussed for planning and forecasting costs.
Trend-based and driver-based forecasting methodologies were explained for accurate budgeting.
AWS Cost Explorer and AWS Forecast were introduced as machine learning-based services for forecasting.
Tagging and account management strategies were emphasized for tracking costs and usage.
AWS Budgets and cost anomaly detection were highlighted as tools for maintaining budget adherence and identifying unexpected costs.
Intuit's Jason Rhodes shared their cloud journey, emphasizing distributed accountability and the importance of aligning cost allocation with forecasting cycles.
The session concluded with a reminder that a forecast without a plan is not effective and encouraged the use of AWS Cloud Financial Management resources.

Establishing a clear baseline is crucial for setting accurate budgets and thresholds for alerts and automated actions.
It's important to have a consistent tagging and account management strategy to track costs effectively.
Forecasting is a continuous process that should involve trend analysis and consideration of business drivers such as new applications, migrations, or acquisitions.
AWS offers a variety of tools to assist with cost estimation and forecasting, each with its own strengths and ideal use cases.
Intuit's approach to forecasting emphasizes distributed accountability, where each team is responsible for their segment of cloud costs, and the importance of aligning cost allocation changes with forecasting cycles.
AWS Budgets and cost anomaly detection are essential tools for maintaining budget adherence and identifying unexpected costs, allowing teams to adjust their spending proactively.
The session highlighted the importance of involving all relevant stakeholders in the forecasting process and establishing a rhythm of business for continuous evaluation and adjustment.
AWS Cloud Financial Management resources and blogs are valuable for staying up-to-date with best practices and customer stories.