Cost Analysis

Cost Allocation Facilitates Financial Accountability

Cost allocation enables enterprises to allocate costs to business teams, making costs of each business team clearly visible. Based on clear costs, business departments can provide cost-effective solutions with properly priced products and a balance among costs, stability, and performance. Enterprise managers can make informed decisions on cloud expenditures of each business, ensuring that expenditures of core and strategic businesses are within the budget and no waste occurs. Typical cost allocation scenarios include:

• Project-based cost allocation, such as to innovation projects and expansion projects
• Department-based cost allocation, such as to R&D departments and test departments
• Brand-based cost allocation, such as to the R&D, manufacturing, and store sales of a specific brand
• System-based cost allocation, such as to the IT systems shared by multiple businesses

Cost Allocation

Huawei Cloud provides multiple cost allocation capabilities.

• Direct cost allocation: Enterprises can allocate costs based on the account, enterprise project, or cost tag associated with the resource when the costs are generated.
• Cost allocation for special products: The costs of special products such as yearly/monthly subscriptions and resource packages are amortized to enterprise projects, tags, and resources based on actual usage.
• Usage-based shared cost splitting for traffic resources: Cost Center allows you to split the costs of shared cloud resources such as CDN and Live to domain names or IP addresses based on the actual usage.
• Splitting container cluster costs: Huawei Cloud provides CCE cost insights. After this function is enabled, the CCE cluster management fee and the fees of ECS and EVS resources associated with the CCE cluster can be split to clusters, namespaces, and workloads.
• Multi-dimensional categorization and summary: You can also use cost categories to categorize and summarize costs with multiple conditions (product type, bill type, linked account, enterprise project, cost tag, brand, and subsystem)
• Shared cost allocation: You can define cost categories to allocate shared costs proportionally within your organization, for example, the costs of shared resources and platform services, and untagged costs. This makes it easier to fairly allocate costs to different teams or business departments.

Making Cost Analysis from Various Dimensions to Explore Costs and Usage

Enterprises perform refined analysis on cloud costs to understand the cost structure and trend to examine:

• Do costs increase with the business growth? Is the increase trend stable?
• Which cloud services have the highest expenditure? Which cloud services have the fastest expenditure growth?
• Is the pricing mode reasonable? Are new, cost-effective resources used?
• Is the resource deployment reasonable? Are low-cost region resources used?
• What caused cost fluctuation?

Huawei Cloud Cost Center provides you with multi-dimensional summary and filtering mechanisms to help you analyze costs and usage trends, and their drivers. Considering common cost data filtering conditions, Cost Center has preconfigured the following reports for quick analysis.