![]() The key phrase in that definition is that you define the tags. That's obviously a simplistic definition, but it's an important starting point to understand how to use this tool. Cost allocation tags are tags that you define and apply to AWS resources What Are AWS Cost Allocation Tags?Ĭost allocation tags are tags that you define and apply to AWS resources. Because we want this post to be valuable to anybody using AWS, we’ll focus on what you can accomplish with AWS native tools. We've talked extensively about how tags are one of the first steps in AWS Cost Optimization and knowing where you're spending with tags is a stepping stone to creating an informed FinOps practice. In this post, we'll talk about what tags are and how you can use them to peer into how you're spending money with AWS. Fortunately, AWS provides AWS cost allocation tags to collect information about what you're paying AWS. The problem comes when teams can’t say what they are spending so much money on. After all, if you're a software company, you're going to spend money on the hardware that runs your software. For many of these companies, AWS is the second-biggest line item in the budget after salaries. At many companies cloud computing costs comprise significant operational expenses every month. AWS wants as much of my money as they can take. ![]() Unfortunately, there's a catch when it comes to AWS: that money bit. ![]() AWS has been the single biggest change in how teams build applications in the last 15 years. ![]()
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