𝗖𝗹𝗼𝘂𝗱 𝗖𝗼𝘀𝘁 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝘃𝘀 𝗢𝗽𝘁𝗶𝗺𝗶𝘇𝗮𝘁𝗶𝗼𝗻

𝗖𝗹𝗼𝘂𝗱 𝗖𝗼𝘀𝘁 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝘃𝘀 𝗢𝗽𝘁𝗶𝗺𝗶𝘇𝗮𝘁𝗶𝗼𝗻

Many people use these terms for the same thing. They solve different problems.

Cloud cost management is about visibility. It focuses on tracking spend.

• Spend dashboards
• Team tagging
• Budget alerts
• Usage policies

Management creates accountability. Finance sees the spend. Engineers see their costs.

Cloud cost optimization is about action. It lowers your bill.

• Rightsize instances
• Remove idle resources
• Tier your storage
• Use auto-scaling
• Buy commitments

Savings Plans and Reserved Instances lower prices. You commit to a usage level for a discount.

Commitment Coverage = Usage covered / Total eligible usage.

A dashboard shows you spend 70% on compute. It does not tell you if the size is wrong. It does not tell you if instances are idle. This gap creates waste.

Follow this path:

• Visibility
• Governance
• Optimization
• Automation

Management handles visibility and governance. Optimization handles efficiency and automation.

Tips for your team:

• Tag all resources first.
• Monitor usage daily.
• Buy commitments for baseline load.
• Automate changes.
• Teach engineers about cost.

What is the biggest gap in your cloud billing?

Source: https://dev.to/aman_singh_414811a9e4168b/what-is-the-difference-between-cloud-cost-optimization-and-cloud-cost-management-2bbp

Optional learning community: https://t.me/GyaanSetuAi