The 3 Layers Framework of Cloud Cost Control

Author

Govardhana M K
January 20, 2025

In partnership with

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  • The 3 Layers Framework of Cloud Cost Control

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🧠 USE CASE

The 3 Layers Framework of Cloud Cost Control

Some of you may feel shocked by this unexpected, pent up cloud bill.

However, seasoned pros are used to this.

It has happened, is happening, and will continue to happen.

The simple and more commonly heard solution would be:

1) Set up billing alerts.

2) Refer to step 1.

This is necessary but not sufficient.

In my decade plus experience in cloud, I consistently observe that even the so called mature companies lack a framework for approaching cloud cost control.

For most, it is an afterthought, and many only wake up to shocking cloud bills.

Here I’ve tried to encapsulate the cloud cost control framework into three layers.

Download a high resolution PDF of this framework diagram here.

Layer 1. Strategic Foundation

It’s about the clarity of what you are paying for, why, and whether it delivers value. Building this foundation helps eliminate blind spots in cost ownership, encourages transparency across teams, and ensures every dollar spent has a purpose.

Key actions:

  • Align Cloud Costs with Business Goals

  • Understand Pricing Models

  • Select Cost Effective Cloud Services

  • Establish Accountability for Costs

  • Define KPIs for Cloud Efficiency

  • Promote a Cost Conscious Culture

Layer 2. Planning

This is where you bring structure to your cost control efforts. It is about establishing proactive mechanisms to ensure costs do not surprise you.

This includes making forecasting an ongoing practice and embedding cost tracking as part of resource planning cycles.

The real advantage? Teams can spot risks early, and control spending before it gets out of hand.

Key actions:

  • Set Budgets and Thresholds

  • Forecast Resource Demands

  • Allocate Costs to Teams/Projects

  • Enable Billing Alerts

  • Create Alerts for Usage Spikes

  • Identify Critical Workloads

  • Regularly Review Cost Trends

  • Track Shadow IT

Layer 3. Execution

This is the “action mode” of cost control. It is not just about identifying inefficiencies but about implementing fixes swiftly and continuously. It involves operational tuning to keep costs in check while scaling seamlessly.

Key actions:

  • Monitor Usage in Real Time

  • Automate Scaling

  • Optimize Resource Allocations

  • Rightsize Instances

  • Terminate Idle Resources

  • Use Reserved and Spot Instances

  • Optimize Network Egress Costs

  • Conduct Post Billing Review

Despite all this, the cloud bill may still bring surprises.

You can monitor, measure, optimize, and control (to a greater extent), but you cannot completely avoid them.

Welcome to the cloud!

I run a DevOps and Cloud consulting agency and have helped 17+ businesses, including Stanford, Hearst Corporation, CloudTruth, and more.

What people say after working with me: Genuine testimonials

I am just an email away when your business needs my services [email protected]

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