CostFormation: Allocating Shared Costs

Custom Dimensions allow you to organize your cloud costs by grouping resources together in ways that make the most sense for your business. However, when a resource is shared by multiple systems, such as customers, products or tenants, it becomes necessary to split the cost across multiple resources. For example, an RDS database that is used by multiple products should not have its cost entirely assigned to only one product.

You can allocate this cost by using Allocation Dimensions. An Allocation Dimension is a type of CloudZero Custom Dimension created using the CostFormation definition language. All allocation is based on real cost. The Allocation Dimensions are as follows.

Allocation Dimension Types

Rules Allocation Dimensions

These dimensions are used to split shared costs across the elements of another dimension, for example, splitting the cost of a shared database among the products using the database, proportional to the relative cost for each product, or splitting a system-wide operational cost evenly across a number of engineering teams. Rules Allocation Dimensions provide a way to split costs to increase your cloud cost visibility without further engineering work.

Telemetry Allocation Dimensions

These dimensions are used to split shared costs among different target elements based on additional telemetry data provided to the CloudZero platform. Telemetry Allocation Dimensions provide for granular control over how the shared costs are split, for example, if you need to split the cost according to a utilization metric.

Allocation Dimension Use Cases

To learn more about Allocation Dimensions, see the following documentation: