AWS Certified Solutions Architect – Associate (SAA-C03)Design Cost-Optimized ArchitecturesMedium
A global company uses AWS Organizations to manage multiple AWS accounts. They have several development teams that frequently provision and de-provision EC2 instances, RDS databases, and S3 buckets. The company wants to implement a cost governance strategy that allows them to track and allocate costs accurately to each development team while maintaining flexibility. Which AWS service is best suited for this purpose?
- AAWS Tagging and Resource Groups
- BAWS Budgets
- CAWS Cost and Usage Report (CUR)
- DAWS Cost Explorer
Show answer & explanationAnswer & explanation
Correct answer: A. AWS Tagging and Resource Groups
AWS Tagging allows resources to be labeled with metadata (e.g., 'Team:DevA', 'Project:X'). When combined with Resource Groups, these tags enable granular cost allocation and reporting, allowing the company to track and attribute costs to specific teams or projects accurately.
Why the other options are wrong
- B. Budgets set alerts for spending limits but don't inherently track or allocate costs to specific teams.
- C. CUR provides detailed billing data, but without proper tagging, it's difficult to attribute costs to teams.
- D. Cost Explorer visualizes costs, but relies on accurate data from tags or accounts to allocate.
AWS Tagging for Cost Allocation
AWS Tags are key-value pairs that can be assigned to AWS resources. They are crucial for cost governance, enabling organizations to categorize resources for billing, reporting, and automation, allowing for accurate cost allocation to departments, projects, or applications.
- Key-value pairs for resource metadata.
- Enables granular cost allocation in Cost Explorer and CUR.
- Essential for organizing and managing resources at scale.
Memory trick: Tag your assets, trace your spending, stay on track with your budget's ending.