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Commitment Tracking

Introduction

As commitments are a business investment, it is important to manage them effectively to ensure they provide the value they were purchased for. By tracking commitments you know when to make changes to your workloads or the commitments to ensure maximum value. You can also make changes to the commitments themselves, such as changing the resources they apply to, selling them or refunding/returning them. Management of commitments ensures you take the right action at the right time.

Sample Implementation

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Common Approaches

  • Track all individual commitments
  • Modify workload components to take advantage of unused commitments
  • Modify a commitment to apply to other resources
  • Sell or refund the reservation if it will not be required
  • Report on savings due to each commitment, and all commitments

Maturity Examples

How to get started and what great looks like.

  • Crawl = Periodically report on the current status of commitments, taking action if there is significant loss on any individual commitment
  • Walk = Change control processes factor in commitments – for deployment, change, and decommissioning of resources. Processes are executed so that new/flexible/test/dev workloads consume unused commitments. Use of specific tooling to increase efficiency, providing a uniform view and processes across vendors. Upcoming expirations are known and planned for.
  • Run = Automated management of resources and commitments, with a uniform approach and tooling across all vendors. Resources are modified automatically to ensure full consumption of commitments. Returns on commitments are almost always above business requirements. There is minimal/no wasted effort analyzing or modifying commitments that would not produce a business saving. Upcoming expirations are factored into analysis and tooling for seamless coverage during expirations.

Common KPIs

  • Ensure there is not more than $x of unpurchased discounts that provide more than y% return
  • Frequency of reviews
  • Effort to review and implement recommendations
  • RI Coverage
  • Savings Plan Coverage
  • Committed Use Discount coverage
  • Commitment/RI utilization
  • Willing to add your story - Contibute stories here or reach out in the FinOps Foundation Slack

Cautionary Tales

If the total management effort over the lifetime of the commitment exceeds the value returned, there will be an overall loss to the business. For example, making multiple manual changes to a low value commitment, would lead to an overall loss to the business due to the cost of effort in making changes exceeding the return of the commitment

Understand the recommendations that tools provide. Some tools provide recommendations if any money is saved, regardless of investment amount or risk. Ensure to incorporate business/financial requirements into your analysis to ensure over management does not occur

Resources

These links are provided as potentially relevant industry resources. The FinOps Foundation does not recommend any individual technology vendor and is not responsible for the content below.

  • AWS: https://docs.aws.amazon.com/wellarchitected/latest/cost-optimization-pillar/select-the-best-pricing-model.html
  • Multi-Cloud: (Commitment Discounts in the Cloud Whitepaper)[https://webcache.googleusercontent.com/search?q=cache:PZurN42O1zYJ:https://docs.aws.amazon.com/whitepapers/latest/commitment-discounts-in-the-cloud/commitment-discounts-in-the-cloud.pdf+&cd=4&hl=en&ct=clnk&gl=au]

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