Well-Architected Framework: Cost optimization pillar

Last reviewed 2024-10-11 UTC

The cost optimization pillar in the Google Cloud Well-Architected Framework describes principles and recommendations to optimize the cost of your workloads in Google Cloud.

The intended audience includes the following:

  • CTOs, CIOs, CFOs, and other executives who are responsible for strategic cost management.
  • Architects, developers, administrators, and operators who make decisions that affect cost at all the stages of an organization's cloud journey.

The cost models for on-premises and cloud workloads differ significantly. On-premises IT costs include capital expenditure (CapEx) and operational expenditure (OpEx). On-premises hardware and software assets are acquired and the acquisition costs are depreciated over the operating life of the assets. In the cloud, the costs for most cloud resources are treated as OpEx, where costs are incurred when the cloud resources are consumed. This fundamental difference underscores the importance of the following core principles of cost optimization.

For cost optimization principles and recommendations that are specific to AI and ML workloads, see AI and ML perspective: Cost optimization in the Well-Architected Framework.

Core principles

The recommendations in the cost optimization pillar of the Well-Architected Framework are mapped to the following core principles:

  • Align cloud spending with business value: Ensure that your cloud resources deliver measurable business value by aligning IT spending with business objectives.
  • Foster a culture of cost awareness: Ensure that people across your organization consider the cost impact of their decisions and activities, and ensure that they have access to the cost information required to make informed decisions.
  • Optimize resource usage: Provision only the resources that you need, and pay only for the resources that you consume.
  • Optimize continuously: Continuously monitor your cloud resource usage and costs, and proactively make adjustments as needed to optimize your spending. This approach involves identifying and addressing potential cost inefficiencies before they become significant problems.

These principles are closely aligned with the core tenets of cloud FinOps. FinOps is relevant to any organization, regardless of its size or maturity in the cloud. By adopting these principles and following the related recommendations, you can control and optimize costs throughout your journey in the cloud.

Contributors

Author: Nicolas Pintaux | Customer Engineer, Application Modernization Specialist

Other contributors:

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Align spending with business value