By Dawn Clifton
TheDigitalArtist / Pixabay
Multi-cloud environments are complex. Between complicated pricing structures and novel cloud services, enterprises are faced with a huge challenge when it comes to effectively managing these distributed networks.
One solution to these multi-cloud challenges is to enact a consistent and effective tagging strategy. When done correctly, tagging can contribute greatly to cloud spend management efforts. However, properly centralizing tagging efforts isn’t without its challenges. Many organizations have trouble with consistent naming and assigning responsibility.
Read on to learn why centralized tagging is a vital process within cloud spend management efforts and which strategies can help you overcome tagging challenges.
Why Practice Tagging?
Tagging is an important part of any organization’s cloud governance strategy. In the context of the cloud, tags are metadata values that contain keys and values to help users organize and make sense of their cloud data. Tagging is essential because it helps to efficiently optimize costs across cloud providers by assigning useful information to any resource within your cloud infrastructure.
By categorizing these cloud resources, your organization can expect a variety of benefits. Cloud management teams will have a better understanding of cost allocation, opening the door to an effective cost optimization strategy. In addition to minimizing costs, tagging can improve software compliance by allowing members of the organization to more effectively find cloud resources no matter where they are in the cloud infrastructure. As well, tagging enables better security across your organization’s cloud infrastructure by categorizing resources based on their security level.
The key to a successful tagging strategy that can achieve these benefits is defining tagging policies extremely clearly. There should be a consistent set of tags specifically for governance purposes that apply globally. Servers, storage volumes, databases, and load balancers should all be tagged with the name of the provisioning user, as well as the team or department that they belong to. Some organizations may also implement project or application-based tags, depending on their specific demands. This means tags must be applied consistently by all applications and teams. Without a clear, easy-to-understand tagging policy, individuals are bound to use variations of the same tag, complicating and damaging the accuracy of reporting efforts.
Challenges with Tagging for Cloud Spend Management
Unfortunately, the intense need for standardization is a primary challenge when tagging for cloud spend management. By nature, optimizing cloud spend management with tagging requires near-perfection every time. This is a difficult task to ask of multiple teams that not only span across different business units but across multiple cloud platforms. Team members may make mistakes when categorizing information, or create redundant tags.
Attaining this perfection becomes even more challenging when businesses go through natural changes. For example, imagine if an organization acquired a smaller competitor, and wanted to make use of their data and information. This presents a huge challenge for central IT teams since they must find and track existing tags and change them to conform with the present tagging strategy. This can be taxing and expensive for central IT.
Even within an organization, introducing a new cloud platform can …read more
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