Chargeback

The practice of attributing the costs of cloud services back to the business units, departments, or projects that use them.

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What is Chargeback in cloud computing?

In cloud computing, Chargeback refers to the practice of attributing the costs of cloud services back to the business units, departments, or projects that use them. It's a way of ensuring that the costs of cloud resources are borne by the parts of the organization that actually use them, promoting accountability and cost awareness.

How does Chargeback work?

Chargeback works by tracking the usage of cloud resources by different parts of the organization, and then attributing the costs of these resources to the respective units. This is typically done using tagging, where each cloud resource is tagged with information about which unit it belongs to.

Chargeback Example

For instance, a company, TechCorp, uses cloud services across several departments. With a chargeback model, the costs of the compute instances used by the software development team would be billed back to that team, the costs of the storage used by the marketing team would be billed back to them, and so on.

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