Set up a cost model

Configure cost models in cost management based on your requirements.

Apply a markup or discount to cloud integrations
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Create a cost model to apply a markup or discount to your cloud infrastructure costs. As cloud infrastructure integrations (AWS, Azure, or Google Cloud) collect cost and usage data into cost management with prices assigned, you only need to assign a markup or discount to reflect your costs.

Before you begin
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Adding a markup to your raw costs can allow you to account for your overhead costs, such as the cost of administering your AWS account, Azure subscription, or other support costs. A markup is an estimation to cover your costs not shown by metrics or usage.

The following example shows how to add a 10% markup to the information collected from the AWS Cost and Usage Reports. The same method can be used to apply a markup or discount to your Azure or Google Cloud costs.

Note

Creating, editing, or deleting a cost model only updates calculations starting from the first day of the current month.

Procedure
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  1. From cost management, click Cost Management > Settings.
  2. In the Cost models tab, click Create cost model to open the cost model wizard.
  3. Enter a name and description for the cost model, and select Amazon Web Services (AWS) as the integration type to apply the cost model to. Click Next.
  4. To apply a 10% markup to the base costs of your resources, enter 10 in the as the Markup rate and click Next.
    Note
    • To apply a discount rather than a markup, enter a minus sign with the value (for example, -15).
    • If you do not want to apply a markup or discount, enter 0.
  5. Select one or multiple AWS integrations to assign the cost model to and click Next. Selecting a integration with a cost model already assigned will override its previous cost model. You can also assign integrations to your cost model at a later time.
  6. Review the cost model details, and click Create.
  7. Click Close to exit the cost model wizard.

    Your new cost model appears in the list on the Cost models page.

Results
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  • Navigate to Settings Menu
    Settings icon
    > Cost models and verify that your new cost model appears in the list with the correct markup rate and assigned integrations.

What to do next
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To verify that your cost model data has been applied to the assigned sources, see Review and edit cost models.

Create a cost model for an OpenShift Container Platform cluster
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Because metrics and inventory from OpenShift Container Platform integrations do not have costs associated, you must create a cost model to associate a price to resources.

Before you begin
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Important

If your OCP data is correlated with cloud data, your selection in the Create a cost model wizard must match the currency that your cloud account uses.

Creating a cost model for an OpenShift integration includes assigning prices for usage and requests using CPU, memory, node, networking, cluster, storage, or persistent volume claim metrics, and applying a markup or discount to determine the total costs of your OpenShift infrastructure. You can also use tags to measure costs for specific parts of your infrastructure, such as storage methods. For more information about tagging in cost management, see tagging.dita#tagging.

The following example shows how to design and apply a cost model for an OpenShift Container Platform cluster on cloud infrastructure such as AWS or Azure. The cloud infrastructure costs display in cost management as part of the cluster cost. Because of the way it is displayed, you must create a cost model to distribute the underlying infrastructure cost to accurately reflect the costs of running the cluster.

Note

Creating, editing, or deleting a cost model only updates calculations starting from the first day of the current month.

Procedure
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  1. From cost management, click Cost Management > Settings.
  2. In the Cost models tab, click Create cost model to open the cost model wizard.
  3. Enter a name and description for the cost model, and select OpenShift Container Platform as the integration type to apply the cost model to.
  4. If your OCP data is correlated with cloud data, your selection in Currency must match the currency that your cloud account uses.
    1. For example, if your cloud provider reports in USD, select USD from the drop-down. For on-prem, you can select any currency.
  5. Click Next.
  6. Create a price list or assign an existing price list the the cost model. A price list allows you to assign rates to usage or requests. The cost management service collects these metrics from OpenShift but there is no cost attached to them in cost management until you apply a cost model.
    Note
    You can also create your price list later. For more information on creating price lists, see Create a price list
  7. If desired, set a markup or discount. To apply a 10% markup to the base costs of your resources, enter 10 in the as the Markup rate and click Next.
    Note
    • To apply a discount rather than a markup, enter a minus sign with the value (for example, -15).
    • If you do not want to apply a markup or discount, enter 0.
  8. On the Cost distribution page, select the CPU or Memory distribution type. The distribution type distributes costs based on CPU or memory metrics in project cost breakdowns. If your cluster has high memory usage, select Memory. If your cluster has high CPU usage, select CPU.
  9. On the Cost distribution page, select whether or not to distribute your Platform or Worker unallocated costs into your projects and click Next.
  10. Select one or multiple OpenShift integrations to assign the cost model to and click Next. Selecting a integration with a cost model already assigned will override its previous cost model. You can also assign integrations to your cost model later.
  11. Review the cost model details, and click Create.
  12. Click Close to exit the cost model wizard. Your new cost model will appear in the list on the Cost models page.

What to do next
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To verify that your cost model data has been applied to the assigned sources, see Review and edit cost models.

Review and edit cost models
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To ensure that a cost model is providing the information that you expect, you can review cost model settings. You can also assign a cost model to integrations and edit or delete a cost model.

Before you begin
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Procedure
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  1. In the Hybrid Cloud Console, navigate to the Cost Management > Settings > Cost management settings page.
  2. Select a cost model. The Cost model page opens.
  3. On the Cost model page, complete any of the following tasks:
    • Click Integrations to review the following information:
      • The integration type the cost model was created for
      • The number of integrations assigned to the cost model
      • The date the cost model was last modified
    • Click Price Lists to review the current rates or to add a new rate. Note
      You can not review or add rates directly from the Price Lists tab. Click in to the specific price list to review or add rates.
    • Click Cost calculations to review or edit the markup or discount and the cost distribution.
    • To change the name or currency of the cost model, click the more options button (
      More options icon
      ), and then click Edit.
    • To delete a cost model, click the more options button (
      More options icon
      ), and then click Delete.

What to do next
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Review your tags and tagging strategy to ensure that costs are being distributed to the correct resources, cost centers, or teams. See tagging.dita#tagging for more information.