This work is licensed under CC BY 4.0 - Read how use or adaptation requires attribution

Managing Shared Cost

You are viewing a previous version of the FinOps Framework

View current version of this capability Learn more about the Framework update


A foundational Principle of FinOps is: “Everyone takes ownership for their cloud usage”. The true key to understanding total cost of ownership is built upon transparency and accuracy, but unallocated shared costs hinders both of these. Without appropriately splitting costs that are shared, engineers and product managers lack a complete picture of how much their products are really costing.

The goal of Cost Sharing can be full allocation; however it can also be the adoption of an informed ignore approach. The latter is where a business decision is explicitly made about shared platform services coming from a central budget versus a from a portion of each cost center’s budget.

Almost every organization has cloud costs that need to be segmented and allocated to business departments; the cost of running networking services, Support costs which benefit all Engineering teams or simply the cost of service resources from a cloud provider for which they do not (yet) support tagging/labelling.

As organizations increase their adoption of public cloud, without a strategy and processes in place to assign shared cloud resource costs to specific business owners, it becomes increasingly difficult to understand how to properly and fairly allocate costs, and to actually forecast and budget.

Maturity Assessment





Functional Activity

As someone in a Business/Product role, I will…

As someone in a Finance/FinOps role, I will…

As someone in an Engineering/Operations role, I will…

As someone in an Executive role, I will…


Measure(s) of Success & KPI

Measures of success are represented in the context of cloud costs and may include one or more key performance indicators ( KPI ), describe objectives with key results ( OKR ), and declare thresholds defining outliers or acceptable variance from forecasted trends.