Tag Management | 4 Min Read

Tagging and Cloud Costs


Cloud cost management is the difference between smooth sailing and rough seas when it comes to the monthly expense from your cloud service provider. But when the invoice arrives it’s already too late to curtail unnecessary or wasted cloud spend. The stakes are high as, according to CIO, the cost of computing in the cloud is second only to payroll. Thoroughly tagging resources is the only way to successfully manage your cloud costs. 


To manage, control, and contain cloud costs you must be able to see your resources. Visibility is acquired through tagging. However, your tags must successfully address the four core tagging challenges to effectively manage cloud spend.  

  • Tag Coverage – tag every resource
  • Tag Compliance – separately tag every distinct attribute of a resource
  • Tag Completeness – tag each subcomponent of a resource.
  • Tag Clarity – eliminate duplicate or mis-spelled tag keys.

Tagging that masters these challenges enables timely and accurate data. Anything less will skew your reports and obfuscate data driven decision making. 

Complexity in the Cloud 

Organizations in the cloud are configuring increasingly complex cloud infrastructures. Enterprises are multi-cloud, hybrid-cloud, and serverless, employing Kubernetes, container structures with microservices, and so on, all of which create tagging challenges. A common practice for cloud migration has been to “lift and shift,” moving compute resources from on-premises to the cloud but companies struggle with resource tagging due to deficiencies in tooling, talent, and knowledge. The massive amount of time needed to manually tag legacy resources is time that many choose not to invest, presenting a truncated tagging environment with poor visibility and impaired cost allocation capabilities. 

Rightsize Like a Boss 

Clear visibility into your cloud resources through tagging empowers you to structure your environment for maximum efficiency. Turning off idle resources and rightsizing resources that are either overprovisioned or poorly matched to their workload creates substantial savings. Tagging enables you to identify the resources that benefit from a more efficient architecture. AWS maintains that when you learn how to rightsize, you can save up to 70% percent on your monthly bill, and, according to AWS, rightsizing cloud resources is the most effective way to control cloud costs.  

Intelligent Architecture 

Comprehensive tagging enables continuous monitoring of resources to determine the most efficient way to allocate them among different use cases. Besides right sizing resources there are other cost saving architectural modifications that become evident with cloud visibility. Autoscaling and scheduling shutdowns for evenings, weekends, and holidays; deleting orphaned volumes; and optimizing block storage volumes are changes that can be executed for cost savings.  

Cost Allocation 

The most formidable weapon in your cloud cost management arsenal is cost allocation through resource tagging. Cost allocation enables the organization to answer the basic question; Who is spending what? The more completely and accurately an organization tags its cloud resources the more accurate its analysis. Tough decisions regarding costs are made easier by the visibility of trends, key performance metrics and benchmarking. Decisions can be based on real time data rather than intuition. Cost allocation enables disparate teams to manage their own costs, creating greater cost optimization by placing control and accountability in the hands of those making the decisions. 

How Do We Get There? 

CloudSaver’s innovative SaaS solution, Tag Manager, is fully equipped to tackle your cloud cost management challenges. Its Tag Intelligence dashboard provides you with key metric visibility of your tag environment the moment you connect, along with an assessment of your tag health that provides guidance for correcting any deficiencies. Tag Manager then enables batch processing for efficient and rapid performance of once tedious and time-consuming tasks, including the capability of tagging legacy resources in bulk. Tag Consolidation provides the means to identify and correct tag syntax errors, misspellings, and omissions. Transition your performance from reacting to unexpected cloud costs to proactively forecasting and budgeting your cloud spend. 

To clean up your cloud check out Tag Manager today and enjoy a 30-day free trial. As one client stated, “the power of Tag Manager is going to my head!” 

Learn more about taming your cloud costs with tagging in these resources: