The Importance of Resource Tagging to Cloud Cost & Performance Optimization

Resource Tagging is Foundational for Cost & Performance Optimization

Adding tags to your virtual machines—whether in your private or a public cloud—yields deeper and more meaningful visibility into multidimensional categorizations for each of your cloud resources. Some examples of resource tagging include:

  • Business unit (who owns the VM or group of VMs)
  • Environment (dev, test, prod)
  • Billing
  • Application (which applications are running within the VM)
  • Compliance requirements and status
  • Optimization status

Tags can also be be imported from multiple sources, including:

  • AWS resource tags (Amazon EC2)
  • CMDBs
  • Spreadsheets
  • Manual input

Tags govern the recommendations generated by Densify, enabling you to apply policy-based analytics that respect certain groupings and produce more relevant and actionable infrastructure optimization suggestions to reduce cost and enhance performance. Tags also empower your organization to slice and dice your cloud instance data multiple ways—such as for cost allocation, chargeback/showback, or cost optimization. The use of tags also allows you to mine the instance data to produce meaningful reports, whether you are using Densify’s embedded business intelligence (BI) reporting, or extracting the data to load into your own reporting software.

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