Oracle Cloud Infrastructure provides Cost Analysis, Budgets, and Usage Reports through which you can analyze your spendings on different services, keep track of services used, and set a threshold on your spending.
In this blog, we will discuss a suite of tools Oracle provides to help you understand spending patterns, monitor consumption, analyze their bill, and, ultimately, reduce spending.
Oracle offers several pricing models to help you maximize the potential from cloud services while optimizing the cost at the same time.
- Pay-as-you-go (PAYG): Allows you to quickly provision services with no commitment, and pay only for what you use.
- Universal Credits-Monthly Flex: Select a monthly prepaid commitment and can consume any IaaS and PaaS cloud service anytime, anywhere.
- Bring your own license: Bring your current on-premise Oracle software licenses to equivalent, highly automated Oracle IaaS & PaaS services in the cloud.
Benefits of Cost Management
Oracle Cost Management provides various enterprise-grade controls to maintain control over cloud cost:
- Predictability: Budgets ensure predictable cloud spending and prevent over usages.
- Control: Quotas help you centrally control usage of high-value cloud resources
- Visibility: Cost Analysis Dashboard help maintain visibility over the spending. Usage reports also help gain insight into resource-level visibility.
- Optimization: Ability to perform cost optimization and lower spend.
- Extensibility: Lets you leverage cloud management and BI tools you already know and use.
- User must have access to an Oracle Cloud Infrastructure tenancy
- To use registry service, the user is either a part of the admin group or part of a group to which a policy grants
the appropriate permissions
Steps To Configure
OCI Cost Analysis
Cost Analysis is a visualization tool that helps understand spending patterns at a glance. To use this tool, user must be a member of the Administrators group. Cost Analysis filters cost by Date, Tags, and Compartments.
Use the Cost Analysis dashboard to view your spending by service or by department, compartment, or cost tracking tag.
1) In Start Date, select a date. In End Date, select a date (within six months of the start date). Click Apply Filters
2) From Tag Key, select a tag. Click Apply Filters
3) From Compartment, select a compartment. Click Apply Filters
The budget is used to track actual spending for the whole tenancy or per compartment. It is also used to set alerts on your budgets at predefined thresholds to get notified.
The following concepts are essential for budgets:
- Budget: A monthly threshold you define for your cloud spending.
- Alert: Email alerts that get sent out for your budget
1) Navigate to Budgets in OCI Console and click on Create Budget
2) Sample Budget Alert Emails
OCI Usage Reports
A usage report is a comma-separate value (CSV) file contains detailed information about your OCI resources consumption. It is generated daily and stored in an object storage bucket.
It can be used in conjunction with your rate card for:
- Invoice reconciliation
- Custom reporting
- Cost optimization
- Resource inventory
Sample Dashboard from a Usage Report
Service Limits and Usage
When you sign up for Oracle Cloud Infrastructure, a set of service limits are configured for your tenancy. The service limit is the quota or allowance limit on a resource. Your tenancy’s limits, quotas, and usage can be seen in the Console. Service limits can be increased from within the Console after submitting a request.
Quotas give you better control over how resources are consumed by letting you allocate resources to projects or departments. Compartments help you restrict usage to a small set of resources, restrict resource counts or disable services as necessary. Similar to Service Limits; but service limits are set by Oracle, and compartment quotas are set by administrators.
Oracle Cloud Workload Cost Estimator
Oracle launched Oracle Cloud Workload Estimator last month which shows a drastic difference between the computing scenarios of Oracle Cloud Infrastructure and AWS.
This tool offers an apples-to-apples comparison of key workloads between Oracle Cloud infrastructure and that of AWS. You will be amazed to see the results that show “Oracle is a more cost-efficient option for many high-performance applications.”
Cost Management Best Practices
Let’s take a look at some best practices for cost management:
- Create a budget that matches your commitment amount and an alert at 100 percent of the forecast. This gives you an early warning if your spending increases and you’re at risk of getting an overage.
- Use compartments for cost management along with access-control. Many customers set up one compartment per department for cost management and cross-charging.
- Use cost-tracking tags (like cost-center) to allocate costs in more granular ways.
- Enable monitoring of all resources. Monitoring data can be merged with cost data to gain powerful insights on how to improve resource utilization.
- Usage reports are also used to analyze costs and drive custom solutions.
- 1Z0-1084-20 | Oracle Cloud Infrastructure Developer Associate
- Functions and Events in OCI
- KMS in OCI
- Monitoring Service in OCI
- Secret Management in OCI
Next Task For You
In our OCI Developer Associate [1Z0-1084] Certification training, we cover the fundamentals of Cloud-native applications in the Cloud-native Fundamentals module. In this training, we also cover How to develop, secure, test, and operate cloud-native applications.