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How to Use Shared Cost Reallocation
Last updated
Last updated
Still need help? Please feel free to reach out to our team at support@finout.io.
This documentation will guide you through how to create the different strategy types to help you break down shared cost.
Finout’s Telemetry-based cost reallocation leverages external telemetry data, such as # of bytes transmitted, length of queries or even Business KPIs, to precisely and equitably distribute shared cloud costs among different use cases (Virtual Tag values). This approach apportions costs in a way that reflects the actual consumption of shared resources, ensuring fair attribution according to actual data. This enhances visibility into cloud spending and enables more accurate financial management.
Navigate to the Virtual Tags page via the left side menu.
Select the desired Virtual Tag for reallocation.
In the Virtual Tag window, there are two tabs: Tagging and Reallocation. Choose the Reallocation tab.
Choose a Virtual Tag value to reallocate.
For Select reallocation strategy: Use the dropdown to choose a Telemetry-based Reallocation.
Choose Your telemetry metric: From the dropdown menu, select the telemetry metric you wish to use for reallocation.
Pick an Allocation Key: Choose the Allocation Key from your selected telemetry. This will allow segmenting the Telemetry data and calculating the relevant ratio based on the key values.
Add a Description (Optional): You may enter a description for the reallocation strategy, though this is not mandatory.
Note: Once selections are made, the allocation will automatically populate based on the chosen telemetry name and key.
On the left side of the displayed screen, a table is presented including the reallocation details; key name, allocation percentage, a preview of the cost from the total value, and a unit preview (showing allocation per metric unit).
Important: In this method, the allocation percentage is fixed and calculated daily based on the telemetry data and cannot be edited.
On the right side of the displayed screen, a visualization of your cost reallocation is presented. Use the toggle in the top right corner of the visualization to switch between pie and line charts for different views of the reallocation.
If you wish to change the rule to another metric, the preview will automatically change accordingly.
Select Apply Virtual Tag.
Once you’ve applied the Virtual Tag for telemetry-based cost reallocation in Finout, the reallocation view is dynamically updated to reflect any changes, including the addition of new value to the original virtual tag.
The customized cost allocation offers a versatile approach to dividing shared costs. It allows for allocation either by distributing expenses evenly across all values, ensuring each bears an equal share, or by manually adjusting percentages among values for a tailored distribution. This adaptability is ideal for situations where tracking individual usage is challenging or when shared resources are perceived to have equal value to all users.
Step 1: Choose your reallocation method:
Navigate to the Virtual Tags page via the left-side menu.
Select the desired Virtual Tag for reallocation.
In the Virtual Tag window, there are two tabs: Tagging and Reallocation. Choose the Reallocation tab.
Important: You must have at least one defined rule under “Tagging” in order to reallocate costs for this specific Virtual tag. To read more about Tagging.
For the Virtual Tag value to reallocate, select the relevant value defined in Virtual Tag.
For the Select reallocation strategy, use the dropdown to choose Customized Cost Reallocation.
Reallocate costs evenly or manually:
Reallocate Evenly:
Click on the Reallocate Evenly tab.
Input your value(s) and click the + button to include additional values.
The system will automatically display the allocated percentage next to each value.
Reallocate Manually:
Select the Reallocate Manually tab.
Input your value(s) and click the + button to include additional values.
Specify the allocation percentage for each value ensuring the total equals 100%.
Important:
Unallocated percentage: Indicates under-allocation. Please adjust to reach 100%.
Overallocated percentage: Indicates over-allocation. Please adjust to ensure the total is at most 100%.
Fully allocated: Confirms 100% allocation across all values.
To finalize, click Apply Virtual Tag.
Select the Preview Virtual Tag button located in the footer.
A pop-up window will display the selected Virtual Tag's visualization.
Use the toggle button in the top right corner of the pop-up to switch between views: with the reallocation applied and without it.
Selecting the Reset Virtual Tag Changes button in the footer will revert the virtual tag to its previous settings.
Use the toggle button in the top right corner of your window to switch the rule on and off at any time.