Cloud Cost Management Team Starter Kit

Transcript

Corey: This episode is sponsored in part byLaunchDarkly. Take a look at what it takes to get your code into production. I’m going to just guess that it’s awful because it’s always awful. No one loves their deployment process. What if launching new features didn’t require you to do a full-on code and possibly infrastructure deploy? What if you could test on a small subset of users and then roll it back immediately if results aren’t what you expect? LaunchDarkly does exactly this. To learn more, visitlaunchdarkly.com and tell them Corey sent you, and watch for the wince.

Jesse: Hello, and welcome to AWS Morning Brief: Fridays From the Field. I’m Jesse DeRose.

Amy: I’m Amy Negrette.

Jesse: This is the podcast within a podcast where we talk about all the ways that we have seen AWS used and abused in the wild, with a healthy dose of complaining about AWS for good measure. I feel like it’s just kind of always necessary. There always has to be just that little bit of something extra; it’s the spice that really makes the dish. Today we’re going to be talking about the ‘Cloud Cost Management Team Starter Kit.’ Now, in a previous episode, we talked about the ‘Cloud Cost Management Starter Kit,’ which was a little bit more generalized, and one of the things that we talked about, ultimately, was building a team that is responsible for some of this work, some of this cloud cost management work.

So today, we’re going to take that one step further; we’re going to talk about all of the things that your cloud cost management team should ultimately be responsible for, what it should look like, how you might want to start building that team within your organization. So, I’m going to kick us off. I think one of the first things that is so, so critical for any team that is going to be doing any work is buy-in at the executive leadership level. You need to make sure that engineering leadership, the C-suite leadership has your back in everything that you’re doing. You need to make sure that the work that you’re doing has been signed off at the highest level so that that leadership can help empower you to do your work.

Amy: And we’ve referenced this before, and really, every time we talk about things like what makes a successful project is that as the one executing that project, you probably need the authority and actionable goals in order to do that, and the leadership is going to be the ones to lay that out for you.

Jesse: Absolutely. If you don’t have the backing of leadership, whether it is your boss, whether it is the C-suite, whether it’s a VP suite, you’re not going to get other people to listen to what you have to say; you’re not going to get other people to, broadly speaking, generally speaking, care about the work that you’re trying to do, the work that you’re trying to incentivize and empower other people in the organization to do.

Amy: And that kind of leads us into the next portion of it where you need to know what the responsibilities are and have that clear delineation so that you understand the things that is expected of you, what the engineering teams, what they’re expected to do, and product teams, and finance teams. Everyone has to have a pretty much fenced-in idea of what they’re allowed to do and what they are expected to deliver, just like in any project.

Jesse: Absolutely. It’s so critical for me to understand what I’m responsible for, you to understand what you’re responsible for. I can’t tell you how many times I’ve been in a meeting where somebody will say something generally like, “We should do X,” and then everyone nods and goes, “Oh, yeah, yeah, yeah. We should do X.” And then everybody leaves the meeting and thinks that somebody else is responsible for it, and nobody’s been clearly assigned that work, or nobody knows that work is ultimately their responsibility.

Amy: And if you don’t assign it, people are going to assume that this is going to be a thing that if they have time to, they’ll get to it. And we harp on it enough that whenever work is not prioritized, it is automatically deprioritized. That’s just the way task lists shake out, especially at the end of sprint meetings.

Jesse: Absolutely. And I think that’s one of the other things that’s so important, too, is that it’s not just about assigning the work, but it’s about making sure that everybody who is involved in the conversation, everybody who’s involved in the work agrees on what those boundaries are, agrees on who is responsible for what actions, more specifically speaking from a task responsibility perspective. Because at the end of the day, I want my team, whether that is my individual team or a cross-functional team, to all be bought into who’s responsible for what parts of the project. We all need to be on the same page in terms of, “Yes, this is my responsibility. This part of the work is my responsibility. I will take ownership over this,” so that we can all help each other.

Get that project goal together. One of the other big ideas that is so critical to starting a cloud cost management team is identifying and socializing your business KPI metrics. Now, this is something that some engineering teams already think about day-to-day. They might have ideas of service-level agreements, metrics, maybe service-level objective metrics, but there might be other business metrics that indirectly—or directly—relate to engineering work. It could be number of users using your SaaS platform, it could be number of API requests, it could be the amount of storage that customers are storing on your platform. You want to identify what these metrics are, and start measuring your cloud spend against these metrics.

Amy: And as far as cost optimization projects go, the KPIs may not line up directly against how many servers you’re standing up, or how many users are coming through. They’ll be very indicative because you are spending money per user and per resource, but perhaps your business goals are different. Maybe you’re not looking at trying to save money, but better understand where that money is going.

Jesse: Absolutely. It’s not just about how many instances are running per hour, it’s not just about how many servers are running per hour, or how many users per server. It’s really about understanding what are the core driving indicators of your business? What are the things that ultimately influence and impact how your workloads, and servers, and API functions, and everything, flow and grow and change over time?

Amy: These metrics also can be influenced by things that are not architecturally specific, like savings plans, or the saving you would get through reservations, or some other contractual deal you get from your provider.

Jesse: Yeah, that’s one of the hard things, too, that we always hear from our clients. There is this idea that they think that they are spending a certain amount of money because they’re getting discounts from savings plans, or from reserved instances or from an enterprise discount program, and maybe their usage is a lot higher than that, but because they get these discounts, they think that they’re actually using a lot less than they actually are. And while this is not something we’re talking about specifically or directly in this conversation, it is something to be mindful of because there definitely can be a difference between your usage and your overall spend if your company is investing in thin...