4 Tags Management

 

This chapter covers

  • Understanding the importance of tagging in cloud resource management and FinOps practices
  • Implementing effective tagging strategies across AWS, GCP, and Azure
  • Using open-source tools like Cloud Custodian and Terraform for multi-cloud tag management
  • Developing and maintaining tag hygiene through regular audits and automated processes using AWS Lambda
  • Integrating tagging practices with a cloud asset inventory for enhanced cost allocation and optimization

Effective tags management is a cornerstone of FinOps practices; it allows organizations to organize and track their cloud assets in ways that support cost optimization, operational efficiency, and accountability. Tagging is the practice of assigning metadata to cloud resources, such as virtual machines, storage buckets, and databases. These metadata tags typically consist of key-value pairs (e.g., Environment:Production, Owner:FinanceTeam) that provide important contextual information about each resource. Tagging serves multiple purposes in cloud management, especially within a FinOps framework.

In the previous chapter, we explored how to build a cloud asset inventory across AWS, GCP, and Azure. This chapter will discuss why tagging is critical to cloud financial management; we’ll explore tagging best practices and how to maintain effective tag hygiene to ensure that cloud resources are accurately tracked and managed over time.

4.1 Why Tagging?

4.1.1 Tagging in Practice: An Enterprise Example

4.1.2 How Tagging Works Across Cloud Providers

4.1.3 Cloud Native Tools for Tagging Cloud Resources

4.1.4 Third-Party and Open-Source Tagging Tools

4.2 Tagging Best Practices

4.2.1 Develop a Tagging Strategy

4.2.2 Use a Standardized Tagging Convention

4.2.3 Implement Tag Enforcement and Auditing

4.3 Maintaining Effective Tag Hygiene

4.3.1 Regular Tag Audits

4.3.2 Automate Tagging Processes

4.3.3 Remove Outdated Resources

4.3.4 Keep Tagging Schemes Flexible

4.3.5 Use Tag-Based Access Control

4.3.6 Implement a Tag Validation Service

4.3.7 Implement Automated Tag Correction

4.3.8 Implement Tag Version Control

4.4 Summary