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A company uses Amazon EC2 instances in its AWS account for several workloads. The company needs to perform an analysis to understand the cost of each workload. What is the MOST operationally efficient way to meet this requirement?
A
Move the EC2 instances for each workload into separate accounts.
B
Use a different EC2 instance family for each workload.
C
Add cost allocation tags to each EC2 instance. Activate the tags.
D
Update any workload applications to publish usage data to a cost allocation database.
Explanation:
Correct Answer: C - Add cost allocation tags to each EC2 instance. Activate the tags.
AWS Cost Allocation Tags: AWS provides built-in cost allocation tagging that allows you to categorize and track your AWS costs at a granular level. By adding tags to EC2 instances (such as Environment=Production, Project=WorkloadA, Department=Marketing), you can easily identify costs associated with specific workloads.
Minimal Operational Overhead:
Option A (separate accounts) would require significant administrative overhead to create and manage multiple AWS accounts, plus the complexity of cross-account resource management.
Option B (different instance families) doesn't inherently provide cost tracking and could lead to inefficient resource utilization.
Option D (custom database) requires developing, maintaining, and operating a custom solution, which is much more complex and error-prone.
Native AWS Integration: Cost allocation tags integrate directly with AWS Cost Explorer, AWS Budgets, and AWS Cost and Usage Reports, providing comprehensive cost analysis capabilities without additional infrastructure.
Activation Requirement: After creating tags, you must activate them in the AWS Billing and Cost Management console to include them in cost allocation reports.
Add relevant tags to EC2 instances (e.g., Workload=Analytics, Workload=WebApp)
Activate the tags in AWS Billing console
Use AWS Cost Explorer to analyze costs by tag
Set up budgets and alerts based on tagged resources
This approach provides the most efficient way to track workload-specific costs while leveraging AWS's native cost management capabilities.