As a cloud product manager, much of our jobs center around creating KPIs (or OKRs, if you prefer) such as sales revenue, freemium conversions, or customer stickiness, and encouraging development teams to hit product performance goals. But what happens after those goals have been met? Do we create new KPIs and push forward, or do we take a step back and evaluate whether each indicator actually translates to higher profit for the business?

A good chunk of your Amazon Web Services (AWS) public cloud spending goes to the Amazon Elastic Compute Cloud (Amazon EC2) service. Because it is the default compute service on AWS, Amazon EC2 is key to building, running, and scaling your AWS-based applications. That also means Amazon EC2 pricing has a tremendous impact on your AWS budget. Understanding how the EC2 billing model works will help you control and optimize your AWS spending.

Amid the first bear market in over a decade, the world’s largest companies are facing intense pressure to cut back. Layoffs have made headlines, but cutting workforce is not a silver-bullet solution to surviving in a down market. True, companies tend to spend the most on personnel, but using layoffs as a first line of recession defense has myriad negative consequences for survivors, including reduced job satisfaction, reduced organizational commitment, and declining job performance.

In Part I of this two-part series, I talked about the key benefits of top-down cost allocation: It starts at the provider level, incorporates every penny of your cloud spend, and lets you break it down at as granular a level as is useful for your business.

Cloud costs can pile up quickly, and often behind the scenes. We explain how software-defined cloud interconnect (SDCI) can help your business rein in a swelling budget.

High-quality cloud cost allocation has become an existential issue for businesses. In order to get as much out of their (mounting) cloud investments as possible, business leaders need to know how much they’re spending in the cloud, what/who they’re spending it on, and whether there’s a good reason for it. In its ideal form, cost allocation answers all these questions.

Just as there are a handful of stages to describe the financial journey from startup to established company — pre-seed and seed funding, followed by series A, B, and C funding — there are also stages to the process of achieving a healthy understanding of your costs.