Budgeting

The act of planning and allocating financial resources for effective cloud cost management.

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What is Budgeting in Cloud Computing?

In the context of cloud computing, budgeting is the strategic practice of estimating, allocating, and controlling the financial resources dedicated to cloud services. It's a proactive approach to manage cloud expenditures, which involves forecasting the costs of various cloud resources, setting spending thresholds, and ensuring that the actual spending aligns with these predefined budgets.

How does Budgeting work?

Budgeting in cloud computing starts with a clear understanding of the organization's cloud usage patterns and requirements. This includes identifying the necessary cloud resources and services, estimating their costs, and allocating a part of the organization's financial resources for these expenses.

Budgeting also entails continuous monitoring of cloud spending to ensure it stays within the set limits. If the spending approaches or exceeds the budget, organizations can take corrective actions such as reducing resource usage or revising the budget. Many cloud service providers offer tools to assist in this process, including cost calculators, budget alerts, and detailed usage reports.

Example

Consider a company that operates a cloud-based application. The company sets a monthly budget based on the estimated costs of the compute, storage, and network resources needed for the application.

Throughout the month, the company tracks its cloud spending to ensure it aligns with the budget. If the spending nears the budget limit, the company can either curtail its cloud usage or adjust the budget accordingly. This proactive approach helps the company effectively manage its cloud costs and avoid unexpected expenditures.

Check out related terms

Cost Optimization

The process of minimizing costs while maximizing the efficiency and effectiveness of resources in a cloud environment. Glossary Term: Bring Your Own License (BYOL) - http://www.economize.cloud/glossary/bring-your-own-license Related Terms: Software Licensing - http://www.economize.cloud/glossary/software-licensing A legal instrument that governs the use and distribution of software. Provisioning - http://www.economize.cloud/glossary/provisioning The process of setting up IT infrastructure. It can also refer to the steps required to manage access to data and resources. Platform as a Service (PaaS) - http://www.economize.cloud/glossary/platform-as-a-service-paas A cloud computing model that provides customers a complete platform—hardware, software, and infrastructure—for developing, running, and managing applications without maintaining the infrastructure. Glossary Term: Cost Optimization - http://www.economize.cloud/glossary/cost-optimization Related Terms: Right-Sizing - http://www.economize.cloud/glossary/right-sizing The process of optimizing the size of your cloud resources based on your workload requirements. Resource Management - http://www.economize.cloud/glossary/resource-management The process of managing the usage of resources in a cloud environment, including compute, storage, and network resources. Discount Options - http://www.economize.cloud/glossary/discount-options Pricing models offered by cloud providers that allow customers to save costs in exchange for certain commitments. Glossary Term: Cost Allocation - http://www.economize.cloud/glossary/cost-allocation Related Terms: Allocation - http://www.economize.cloud/glossary/allocation The process of distributing cloud costs across different departments, projects, or business units within an organization. Chargeback - http://www.economize.cloud/glossary/chargeback The practice of attributing the costs of cloud services back to the business units, departments, or projects that use them. Cost Breakdown - http://www.economize.cloud/glossary/cost-breakdown The detailed analysis of the different components contributing to the total cost of cloud services. Glossary Term: Cost Breakdown - http://www.economize.cloud/glossary/cost-breakdown Related Terms: Cost & Usage Data - http://www.economize.cloud/glossary/cost-usage-data Detailed records of costs and resource usage associated with cloud services. Data Transfer Costs - http://www.economize.cloud/glossary/data-transfer-costs The costs associated with transferring data between different services or regions within a cloud environment. Cost Allocation - http://www.economize.cloud/glossary/cost-allocation The process of distributing cloud costs across different departments, projects, or business units within an organization. Glossary Term: Chargeback - http://www.economize.cloud/glossary/chargeback Related Terms: Cost Allocation - http://www.economize.cloud/glossary/cost-allocation The process of distributing cloud costs across different departments, projects, or business units within an organization. Budgeting - http://www.economize.cloud/glossary/budgeting The act of planning and allocating financial resources for effective cloud cost management. Cost Breakdown - http://www.economize.cloud/glossary/cost-breakdown The detailed analysis of the different components contributing to the total cost of cloud services. Glossary Term: Cost & Usage Data - http://www.economize.cloud/glossary/cost-usage-data Related Terms: Resource Management - http://www.economize.cloud/glossary/resource-management The process of managing the usage of resources in a cloud environment, including compute, storage, and network resources. Cost Breakdown - http://www.economize.cloud/glossary/cost-breakdown The detailed analysis of the different components contributing to the total cost of cloud services. Forecasting - http://www.economize.cloud/glossary/forecasting The process of making predictions of the future based on past and present data. Glossary Term: Data Transfer Costs - http://www.economize.cloud/glossary/data-transfer-costs Related Terms: Data Center - http://www.economize.cloud/glossary/data-center A facility used to house computer systems and associated components, such as telecommunications and storage systems. Data Lake - http://www.economize.cloud/glossary/data-lake A storage repository that holds a vast amount of raw data in its native format until it is needed. Edge Computing - http://www.economize.cloud/glossary/edge-computing A distributed computing paradigm that brings computation and data storage closer to the location where it is needed. Glossary Term: Discount Options - http://www.economize.cloud/glossary/discount-options Related Terms: Reserved Instances - http://www.economize.cloud/glossary/reserved-instances A billing option for Amazon EC2 instances that provides significant discounts compared to on-demand pricing. Spot Instances - http://www.economize.cloud/glossary/spot-instances A pricing model for Amazon EC2 that lets you use spare compute capacity at a discounted rate. Cost Optimization - http://www.economize.cloud/glossary/cost-optimization The process of minimizing costs while maximizing the efficiency and effectiveness of resources in a cloud environment. Glossary Term: Data Lifecycle Management - http://www.economize.cloud/glossary/data-lifecycle-management Related Terms: Data Lake - http://www.economize.cloud/glossary/data-lake A storage repository that holds a vast amount of raw data in its native format until it is needed. Object Storage - http://www.economize.cloud/glossary/object-storage A strategy that manages and manipulates data storage as distinct units, called objects, which are kept in a single repository and are not nested as files in a folder. Data Center - http://www.economize.cloud/glossary/data-center A facility used to house computer systems and associated components, such as telecommunications and storage systems. Glossary Term: Data Center - http://www.economize.cloud/glossary/data-center Related Terms: Data Lake - http://www.economize.cloud/glossary/data-lake A storage repository that holds a vast amount of raw data in its native format until it is needed. Availability Zone - http://www.economize.cloud/glossary/availability-zone A logical data center in a region available for use by any AWS customer. Edge Computing - http://www.economize.cloud/glossary/edge-computing A distributed computing paradigm that brings computation and data storage closer to the location where it is needed. Glossary Term: Data Lake - http://www.economize.cloud/glossary/data-lake Related Terms: Data Center - http://www.economize.cloud/glossary/data-center A facility used to house computer systems and associated components, such as telecommunications and storage systems. Object Storage - http://www.economize.cloud/glossary/object-storage A strategy that manages and manipulates data storage as distinct units, called objects, which are kept in a single repository and are not nested as files in a folder. Data Lifecycle Management - http://www.economize.cloud/glossary/data-lifecycle-management The process of managing the flow of data throughout its lifecycle, from creation to the time when it becomes obsolete and is deleted. Glossary Term: Edge Computing - http://www.economize.cloud/glossary/edge-computing Related Terms: Elastic Computing - http://www.economize.cloud/glossary/elastic-computing The ability to quickly expand or decrease computer processing, memory, and storage resources to meet changing demands. Data Center - http://www.economize.cloud/glossary/data-center A facility used to house computer systems and associated components, such as telecommunications and storage systems. High Performance Computing (HPC) - http://www.economize.cloud/glossary/high-performance-computing The practice of aggregating computing power in a way that delivers much higher performance than one could get out of a desktop computer. Glossary Term: Elastic Computing - http://www.economize.cloud/glossary/elastic-computing Related Terms: Auto Scaling - http://www.economize.cloud/glossary/auto-scaling The process of automatically adjusting the amount of computational resources based on the actual demand. Elasticity - http://www.economize.cloud/glossary/elasticity The degree to which a system is able to adapt to workload changes by provisioning and de-provisioning resources in an autonomic manner. EC2 (Amazon Elastic Compute Cloud) - http://www.economize.cloud/glossary/ec2 A web service from Amazon Web Services (AWS) that provides resizable compute capacity in the cloud. Glossary Term: Encryption - http://www.economize.cloud/glossary/encryption Related Terms: Public Key & Private Key - http://www.economize.cloud/glossary/public-key-private-key A pair of cryptographic keys used for encryption and decryption or to create digital signatures. Key Management Service (KMS) - http://www.economize.cloud/glossary/key-management-service A managed service that makes it easy for you to create and control the cryptographic keys used to encrypt your data. X.509 - http://www.economize.cloud/glossary/x-509 A standard that defines the format of public key certificates used in many Internet protocols, including TLS and SSL. Glossary Term: Event-Driven Architecture - http://www.economize.cloud/glossary/event-driven-architecture Related Terms: Serverless Computing - http://www.economize.cloud/glossary/serverless-computing A cloud computing model where the cloud provider automatically manages the provisioning and allocation of compute resources. Microservices - http://www.economize.cloud/glossary/microservices A software development technique that structures an application as a collection of loosely coupled services. Orchestration - http://www.economize.cloud/glossary/orchestration The automated configuration, coordination, and management of computer systems, applications, and services. Glossary Term: Elasticity - http://www.economize.cloud/glossary/elasticity Related Terms: Elastic Computing - http://www.economize.cloud/glossary/elastic-computing The ability to quickly expand or decrease computer processing, memory, and storage resources to meet changing demands. Auto Scaling - http://www.economize.cloud/glossary/auto-scaling The process of automatically adjusting the amount of computational resources based on the actual demand. Scalability - http://www.economize.cloud/glossary/scalability The ability of a system to handle increased load by adding more resources or making better use of existing resources. Glossary Term: EC2 (Amazon Elastic Compute Cloud) - http://www.economize.cloud/glossary/ec2 Related Terms: Elastic Computing - http://www.economize.cloud/glossary/elastic-computing The ability to quickly expand or decrease computer processing, memory, and storage resources to meet changing demands. On-Demand Instances - http://www.economize.cloud/glossary/on-demand-instances A type of instance that you can launch whenever you need it and terminate when you're done using it. Also known as Pay-as-you-go pricing. Spot Instances - http://www.economize.cloud/glossary/spot-instances A pricing model for Amazon EC2 that lets you use spare compute capacity at a discounted rate. Glossary Term: Fault Tolerance - http://www.economize.cloud/glossary/fault-tolerance Related Terms: High Availability - http://www.economize.cloud/glossary/high-availability A characteristic of a system which aims to ensure an agreed level of performance, usually uptime, for a higher than normal period. Redundancy - http://www.economize.cloud/glossary/redundancy The duplication of critical components or functions of a system to increase its reliability. Geographic Redundancy - http://www.economize.cloud/glossary/geographic-redundancy The practice of storing duplicate instances of data in geographically diverse locations to ensure availability during a failure or catastrophe. Glossary Term: Firewall - http://www.economize.cloud/glossary/firewall Related Terms: Gateway - http://www.economize.cloud/glossary/gateway A node in a computer network that serves as an access point to another network. Zero Trust Network - http://www.economize.cloud/glossary/zero-trust-network A security model that requires all users, even those inside the organization's enterprise network, to be authenticated, authorized, and continuously validating security. XDR - http://www.economize.cloud/glossary/xdr A cybersecurity approach that unifies multiple security applications into a single platform to improve detection and response. Glossary Term: Function as a Service (FaaS) - http://www.economize.cloud/glossary/function-as-a-service-faas Related Terms: Serverless Computing - http://www.economize.cloud/glossary/serverless-computing A cloud computing model where the cloud provider automatically manages the provisioning and allocation of compute resources. Platform as a Service (PaaS) - http://www.economize.cloud/glossary/platform-as-a-service-paas A cloud computing model that provides customers a complete platform—hardware, software, and infrastructure—for developing, running, and managing applications without maintaining the infrastructure. Microservices - http://www.economize.cloud/glossary/microservices A software development technique that structures an application as a collection of loosely coupled services. Glossary Term: Federated Cloud - http://www.economize.cloud/glossary/federated-cloud Related Terms: Hybrid Cloud - http://www.economize.cloud/glossary/hybrid-cloud A computing environment that combines a public cloud and a private cloud by allowing data and applications to be shared between them. Public Cloud - http://www.economize.cloud/glossary/public-cloud A type of computing in which a service provider makes resources available to the public via the internet. Private Cloud - http://www.economize.cloud/glossary/private-cloud A type of cloud computing that delivers similar advantages to public cloud, including scalability and self-service, but through a proprietary architecture dedicated to a single organization. Glossary Term: Full Stack - http://www.economize.cloud/glossary/full-stack Related Terms: Microservices - http://www.economize.cloud/glossary/microservices A software development technique that structures an application as a collection of loosely coupled services. Platform as a Service (PaaS) - http://www.economize.cloud/glossary/platform-as-a-service-paas A cloud computing model that provides customers a complete platform—hardware, software, and infrastructure—for developing, running, and managing applications without maintaining the infrastructure. Infrastructure as a Service (IaaS) - http://www.economize.cloud/glossary/infrastructure-as-a-service-iaas A cloud computing model where a third-party provider hosts core infrastructure, including hardware, software, servers, and storage. Glossary Term: Forecasting - http://www.economize.cloud/glossary/forecasting Related Terms: Predictive Analytics - http://www.economize.cloud/glossary/predictive-analytics The use of data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data. Budgeting - http://www.economize.cloud/glossary/budgeting The act of planning and allocating financial resources for effective cloud cost management. Cost & Usage Data - http://www.economize.cloud/glossary/cost-usage-data Detailed records of costs and resource usage associated with cloud services. Glossary Term: GPU Computing - http://www.economize.cloud/glossary/gpu-computing Related Terms: High Performance Computing (HPC) - http://www.economize.cloud/glossary/high-performance-computing The practice of aggregating computing power in a way that delivers much higher performance than one could get out of a desktop computer. Elastic Computing - http://www.economize.cloud/glossary/elastic-computing The ability to quickly expand or decrease computer processing, memory, and storage resources to meet changing demands. EC2 (Amazon Elastic Compute Cloud) - http://www.economize.cloud/glossary/ec2 A web service from Amazon Web Services (AWS) that provides resizable compute capacity in the cloud. Glossary Term: Green Computing - http://www.economize.cloud/glossary/green-computing Related Terms: Data Center - http://www.economize.cloud/glossary/data-center A facility used to house computer systems and associated components, such as telecommunications and storage systems. Hardware Virtualization - http://www.economize.cloud/glossary/hardware-virtualization The abstraction of physical computing resources from the software that uses those resources. ZFS (Z File System) - http://www.economize.cloud/glossary/zfs-z-file-system An advanced file system and logical volume manager designed by Sun Microsystems. Glossary Term: Geographic Redundancy - http://www.economize.cloud/glossary/geographic-redundancy Related Terms: Redundancy - http://www.economize.cloud/glossary/redundancy The duplication of critical components or functions of a system to increase its reliability. Availability Zone - http://www.economize.cloud/glossary/availability-zone A logical data center in a region available for use by any AWS customer. High Availability - http://www.economize.cloud/glossary/high-availability A characteristic of a system which aims to ensure an agreed level of performance, usually uptime, for a higher than normal period. Glossary Term: Gateway - http://www.economize.cloud/glossary/gateway Related Terms: Firewall - http://www.economize.cloud/glossary/firewall A network security system that monitors and controls incoming and outgoing network traffic based on predetermined security rules. Virtual Private Cloud (VPC) - http://www.economize.cloud/glossary/virtual-private-cloud-vpc A virtual network dedicated to your cloud account where you can launch resources in a virtual network that you define. Load Balancer - http://www.economize.cloud/glossary/load-balancer A device that distributes network traffic across a number of servers to enhance the responsiveness and availability of applications, websites, and other services. Glossary Term: Hybrid Cloud - http://www.economize.cloud/glossary/hybrid-cloud Related Terms: Public Cloud - http://www.economize.cloud/glossary/public-cloud A type of computing in which a service provider makes resources available to the public via the internet. Private Cloud - http://www.economize.cloud/glossary/private-cloud A type of cloud computing that delivers similar advantages to public cloud, including scalability and self-service, but through a proprietary architecture dedicated to a single organization. Federated Cloud - http://www.economize.cloud/glossary/federated-cloud A type of cloud computing that integrates multiple cloud services, including public and private clouds, to enable data and application portability. Glossary Term: High Availability - http://www.economize.cloud/glossary/high-availability Related Terms: Fault Tolerance - http://www.economize.cloud/glossary/fault-tolerance The ability of a system to continue functioning when part of the system fails. Redundancy - http://www.economize.cloud/glossary/redundancy The duplication of critical components or functions of a system to increase its reliability. Disaster Recovery - http://www.economize.cloud/glossary/disaster-recovery A set of policies, tools, and procedures to enable the recovery or continuation of vital technology infrastructure and systems following a natural or human-induced disaster. Glossary Term: High Performance Computing (HPC) - http://www.economize.cloud/glossary/high-performance-computing Related Terms: Supercomputer - http://www.economize.cloud/glossary/supercomputer A computer with great speed and computational capacity compared to general-purpose computers. Parallel Computing - http://www.economize.cloud/glossary/parallel-computing A type of computation in which many calculations or processes are carried out simultaneously. GPU Computing - http://www.economize.cloud/glossary/gpu-computing The use of a GPU (graphics processing unit) together with a CPU to accelerate deep learning, analytics, and engineering applications. Glossary Term: Hardware Virtualization - http://www.economize.cloud/glossary/hardware-virtualization Related Terms: Virtual Machine (VM) - http://www.economize.cloud/glossary/virtual-machine-vm A software emulation of a physical computer that executes programs like a physical computer. Hypervisor - http://www.economize.cloud/glossary/hypervisor A piece of software, firmware, or hardware that creates and runs virtual machines. Containerization - http://www.economize.cloud/glossary/containerization A lightweight alternative to full machine virtualization that involves encapsulating an application in a container with its own operating environment. Glossary Term: Hypervisor - http://www.economize.cloud/glossary/hypervisor Related Terms: Virtual Machine (VM) - http://www.economize.cloud/glossary/virtual-machine-vm A software emulation of a physical computer that executes programs like a physical computer. Hardware Virtualization - http://www.economize.cloud/glossary/hardware-virtualization The abstraction of physical computing resources from the software that uses those resources. Cloud Management Platform (CMP) - http://www.economize.cloud/glossary/cloud-management-platform-cmp A suite of integrated software tools that an enterprise can use to monitor and control cloud computing resources. Glossary Term: Infrastructure as a Service (IaaS) - http://www.economize.cloud/glossary/infrastructure-as-a-service-iaas Related Terms: Platform as a Service (PaaS) - http://www.economize.cloud/glossary/platform-as-a-service-paas A cloud computing model that provides customers a complete platform—hardware, software, and infrastructure—for developing, running, and managing applications without maintaining the infrastructure. Software as a Service (SaaS) - http://www.economize.cloud/glossary/software-as-a-service-saas A software licensing and delivery model in which software is provided over the Internet, eliminating the need for complex software and hardware management. Virtualization - http://www.economize.cloud/glossary/virtualization The creation of a virtual version of something, such as a hardware platform, operating system, storage device, or network resources. Glossary Term: Internet of Things (IoT) - http://www.economize.cloud/glossary/internet-of-things-iot Related Terms: Edge Computing - http://www.economize.cloud/glossary/edge-computing A distributed computing paradigm that brings computation and data storage closer to the location where it is needed. Device Management - http://www.economize.cloud/glossary/device-management The administration of mobile devices, such as smartphones, tablet computers, laptops, and desktop computers. Big Data - http://www.economize.cloud/glossary/big-data A term that describes the large volume of data – both structured and unstructured – that inundates a business on a day-to-day basis. Glossary Term: Key Management Service (KMS) - http://www.economize.cloud/glossary/key-management-service Related Terms: Encryption - http://www.economize.cloud/glossary/encryption The process of converting information or data into a code to prevent unauthorized access. Public Key & Private Key - http://www.economize.cloud/glossary/public-key-private-key A pair of cryptographic keys used for encryption and decryption or to create digital signatures. Identity and Access Management (IAM) - http://www.economize.cloud/glossary/identity-and-access-management-iam A framework of policies and technologies for ensuring that the proper people in an enterprise have the appropriate access to technology resources. Glossary Term: Load Balancer - http://www.economize.cloud/glossary/load-balancer Related Terms: High Availability - http://www.economize.cloud/glossary/high-availability A characteristic of a system which aims to ensure an agreed level of performance, usually uptime, for a higher than normal period. Auto Scaling - http://www.economize.cloud/glossary/auto-scaling The process of automatically adjusting the amount of computational resources based on the actual demand. Gateway - http://www.economize.cloud/glossary/gateway A node in a computer network that serves as an access point to another network. Glossary Term: Microservices - http://www.economize.cloud/glossary/microservices Related Terms: Containerization - http://www.economize.cloud/glossary/containerization A lightweight alternative to full machine virtualization that involves encapsulating an application in a container with its own operating environment. Serverless Computing - http://www.economize.cloud/glossary/serverless-computing A cloud computing model where the cloud provider automatically manages the provisioning and allocation of compute resources. Event-Driven Architecture - http://www.economize.cloud/glossary/event-driven-architecture A software architecture pattern promoting the production, detection, consumption of, and reaction to events. Glossary Term: Multi-Factor Authentication (MFA) - http://www.economize.cloud/glossary/multi-factor-authentication-mfa Related Terms: Single Sign-On (SSO) - http://www.economize.cloud/glossary/single-sign-on-sso A property of access control of multiple related, yet independent, software systems, where a user logs in once and gains access to all systems without being prompted to log in again. Biometrics - http://www.economize.cloud/glossary/biometrics The technical term for body measurements and calculations related to human characteristics, often used in authentication. Identity and Access Management (IAM) - http://www.economize.cloud/glossary/identity-and-access-management-iam A framework of policies and technologies for ensuring that the proper people in an enterprise have the appropriate access to technology resources. Glossary Term: Network Attached Storage (NAS) - http://www.economize.cloud/glossary/network-attached-storage-nas Related Terms: Storage Area Network (SAN) - http://www.economize.cloud/glossary/storage-area-network-san A network that provides access to consolidated, block-level data storage. Object Storage - http://www.economize.cloud/glossary/object-storage A strategy that manages and manipulates data storage as distinct units, called objects, which are kept in a single repository and are not nested as files in a folder. File System - http://www.economize.cloud/glossary/file-system A method and data structure that an operating system uses to control how data is stored and retrieved. Glossary Term: Object Storage - http://www.economize.cloud/glossary/object-storage Related Terms: Data Lake - http://www.economize.cloud/glossary/data-lake A storage repository that holds a vast amount of raw data in its native format until it is needed. Network Attached Storage (NAS) - http://www.economize.cloud/glossary/network-attached-storage-nas A file-level computer data storage server connected to a computer network providing data access to a heterogeneous group of clients. Blob Storage - http://www.economize.cloud/glossary/blob-storage A service for storing large amounts of unstructured data, such as text or binary data, that can be accessed via HTTP or HTTPS. Glossary Term: On-Demand Instances - http://www.economize.cloud/glossary/on-demand-instances Related Terms: Reserved Instances - http://www.economize.cloud/glossary/reserved-instances A billing option for Amazon EC2 instances that provides significant discounts compared to on-demand pricing. Spot Instances - http://www.economize.cloud/glossary/spot-instances A pricing model for Amazon EC2 that lets you use spare compute capacity at a discounted rate. EC2 (Amazon Elastic Compute Cloud) - http://www.economize.cloud/glossary/ec2 A web service from Amazon Web Services (AWS) that provides resizable compute capacity in the cloud. Glossary Term: Orchestration - http://www.economize.cloud/glossary/orchestration Related Terms: Automation - http://www.economize.cloud/glossary/automation The use of largely automatic equipment in a system of operation or production. Configuration Management - http://www.economize.cloud/glossary/configuration-management The process of systematically handling changes to a system in a way that it maintains integrity over time. DevOps - http://www.economize.cloud/glossary/devops A set of practices that combines software development (Dev) and IT operations (Ops) to shorten the systems development life cycle and provide continuous delivery. Glossary Term: Platform as a Service (PaaS) - http://www.economize.cloud/glossary/platform-as-a-service-paas Related Terms: Infrastructure as a Service (IaaS) - http://www.economize.cloud/glossary/infrastructure-as-a-service-iaas A cloud computing model where a third-party provider hosts core infrastructure, including hardware, software, servers, and storage. Software as a Service (SaaS) - http://www.economize.cloud/glossary/software-as-a-service-saas A software licensing and delivery model in which software is provided over the Internet, eliminating the need for complex software and hardware management. Function as a Service (FaaS) - http://www.economize.cloud/glossary/function-as-a-service-faas A category of cloud computing services that provides a platform allowing customers to develop, run, and manage application functionalities without the complexity of building and maintaining the infrastructure. Glossary Term: Predictive Analytics - http://www.economize.cloud/glossary/predictive-analytics Related Terms: Machine Learning - http://www.economize.cloud/glossary/machine-learning A type of artificial intelligence (AI) that provides systems the ability to automatically learn and improve from experience without being explicitly programmed. Big Data - http://www.economize.cloud/glossary/big-data A term that describes the large volume of data – both structured and unstructured – that inundates a business on a day-to-day basis. Forecasting - http://www.economize.cloud/glossary/forecasting The process of making predictions of the future based on past and present data. Glossary Term: Public Cloud - http://www.economize.cloud/glossary/public-cloud Related Terms: Private Cloud - http://www.economize.cloud/glossary/private-cloud A type of cloud computing that delivers similar advantages to public cloud, including scalability and self-service, but through a proprietary architecture dedicated to a single organization. Hybrid Cloud - http://www.economize.cloud/glossary/hybrid-cloud A computing environment that combines a public cloud and a private cloud by allowing data and applications to be shared between them. Multi-Tenant - http://www.economize.cloud/glossary/multi-tenant A term used in software architecture where a single instance of software runs on a server and serves multiple tenants (users). Glossary Term: Redundancy - http://www.economize.cloud/glossary/redundancy Related Terms: Fault Tolerance - http://www.economize.cloud/glossary/fault-tolerance The ability of a system to continue functioning when part of the system fails. High Availability - http://www.economize.cloud/glossary/high-availability A characteristic of a system which aims to ensure an agreed level of performance, usually uptime, for a higher than normal period. Geographic Redundancy - http://www.economize.cloud/glossary/geographic-redundancy The practice of storing duplicate instances of data in geographically diverse locations to ensure availability during a failure or catastrophe. Glossary Term: Reserved Instances - http://www.economize.cloud/glossary/reserved-instances Related Terms: On-Demand Instances - http://www.economize.cloud/glossary/on-demand-instances A type of instance that you can launch whenever you need it and terminate when you're done using it. Also known as Pay-as-you-go pricing. Spot Instances - http://www.economize.cloud/glossary/spot-instances A pricing model for Amazon EC2 that lets you use spare compute capacity at a discounted rate. Cost Optimization - http://www.economize.cloud/glossary/cost-optimization The process of minimizing costs while maximizing the efficiency and effectiveness of resources in a cloud environment. Glossary Term: Scalability - http://www.economize.cloud/glossary/scalability Related Terms: Elasticity - http://www.economize.cloud/glossary/elasticity The degree to which a system is able to adapt to workload changes by provisioning and de-provisioning resources in an autonomic manner. Auto Scaling - http://www.economize.cloud/glossary/auto-scaling The process of automatically adjusting the amount of computational resources based on the actual demand. Load Balancer - http://www.economize.cloud/glossary/load-balancer A device that distributes network traffic across a number of servers to enhance the responsiveness and availability of applications, websites, and other services. Glossary Term: Serverless Computing - http://www.economize.cloud/glossary/serverless-computing Related Terms: Function as a Service (FaaS) - http://www.economize.cloud/glossary/function-as-a-service-faas A category of cloud computing services that provides a platform allowing customers to develop, run, and manage application functionalities without the complexity of building and maintaining the infrastructure. Microservices - http://www.economize.cloud/glossary/microservices A software development technique that structures an application as a collection of loosely coupled services. Event-Driven Architecture - http://www.economize.cloud/glossary/event-driven-architecture A software architecture pattern promoting the production, detection, consumption of, and reaction to events. Glossary Term: Single Sign-On (SSO) - http://www.economize.cloud/glossary/single-sign-on-sso Related Terms: Multi-Factor Authentication (MFA) - http://www.economize.cloud/glossary/multi-factor-authentication-mfa A method of confirming a user's claimed identity by utilizing a combination of two or more different factors. Identity and Access Management (IAM) - http://www.economize.cloud/glossary/identity-and-access-management-iam A framework of policies and technologies for ensuring that the proper people in an enterprise have the appropriate access to technology resources. Authentication - http://www.economize.cloud/glossary/authentication The process of verifying the identity of a person or device. Glossary Term: Software as a Service (SaaS) - http://www.economize.cloud/glossary/software-as-a-service-saas Related Terms: Platform as a Service (PaaS) - http://www.economize.cloud/glossary/platform-as-a-service-paas A cloud computing model that provides customers a complete platform—hardware, software, and infrastructure—for developing, running, and managing applications without maintaining the infrastructure. Infrastructure as a Service (IaaS) - http://www.economize.cloud/glossary/infrastructure-as-a-service-iaas A cloud computing model where a third-party provider hosts core infrastructure, including hardware, software, servers, and storage. Subscription Model - http://www.economize.cloud/glossary/subscription-model A business model where a customer must pay a subscription price to have access to a product or service. Glossary Term: Storage Area Network (SAN) - http://www.economize.cloud/glossary/storage-area-network-san Related Terms: Network Attached Storage (NAS) - http://www.economize.cloud/glossary/network-attached-storage-nas A file-level computer data storage server connected to a computer network providing data access to a heterogeneous group of clients. Object Storage - http://www.economize.cloud/glossary/object-storage A strategy that manages and manipulates data storage as distinct units, called objects, which are kept in a single repository and are not nested as files in a folder. Data Center - http://www.economize.cloud/glossary/data-center A facility used to house computer systems and associated components, such as telecommunications and storage systems. Glossary Term: Virtual Machine (VM) - http://www.economize.cloud/glossary/virtual-machine-vm Related Terms: Hypervisor - http://www.economize.cloud/glossary/hypervisor A piece of software, firmware, or hardware that creates and runs virtual machines. Containerization - http://www.economize.cloud/glossary/containerization A lightweight alternative to full machine virtualization that involves encapsulating an application in a container with its own operating environment. Hardware Virtualization - http://www.economize.cloud/glossary/hardware-virtualization The abstraction of physical computing resources from the software that uses those resources. Glossary Term: Virtual Private Cloud (VPC) - http://www.economize.cloud/glossary/virtual-private-cloud-vpc Related Terms: Public Cloud - http://www.economize.cloud/glossary/public-cloud A type of computing in which a service provider makes resources available to the public via the internet. Private Cloud - http://www.economize.cloud/glossary/private-cloud A type of cloud computing that delivers similar advantages to public cloud, including scalability and self-service, but through a proprietary architecture dedicated to a single organization. Subnet - http://www.economize.cloud/glossary/subnet A logical subdivision of an IP network, often used to separate different parts of a network for security or organizational purposes. Glossary Term: Zero Trust Network - http://www.economize.cloud/glossary/zero-trust-network Related Terms: Firewall - http://www.economize.cloud/glossary/firewall A network security system that monitors and controls incoming and outgoing network traffic based on predetermined security rules. Multi-Factor Authentication (MFA) - http://www.economize.cloud/glossary/multi-factor-authentication-mfa A method of confirming a user's claimed identity by utilizing a combination of two or more different factors. Identity and Access Management (IAM) - http://www.economize.cloud/glossary/identity-and-access-management-iam A framework of policies and technologies for ensuring that the proper people in an enterprise have the appropriate access to technology resources. This concludes the glossary terms. If you have any specific questions or need further details on any of the terms, please let me know!

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