Using cost models

1. Cost management collects cost data from several integrations:

   • Inventory - All the resources that have ever run in your integration, including those that are no longer in use. For example, if your OpenShift Container Platform environment contains a node that is not in use, that node still costs $x amount per month. There are several ways to collect inventory data into cost management: cost management can generate inventory from the AWS data export, Azure or Google Cloud export, or OpenShift Metering Operator reports.
   • Metrics - A subset of the OpenShift inventory showing usage and consumption for each resource.
   • Cloud raw costs - AWS, Azure, and Google Cloud provide regular reports to cost management listing consumption of resources and their costs, which cost management uses for calculations. As a result, configuring a custom price list is not necessary for cloud integrations.

2. The cost model allows you to apply a markup or discount of your choice to account for other costs and overhead, and provides options for assigning a cost layer (infrastructure or supplementary) to costs:

   1. For OpenShift Container Platform integrations - Since the metrics and inventory data do not have a price assigned to usage, you must create and assign a price list to your integrations to determine the usage cost of these resources. A price list includes rates for storage, memory, CPU usage and requests, and clusters and nodes.
   2. For AWS, Azure, and Google Cloud integrations - You can create cost models for these integrations to account for any extra costs or overhead in your environment by applying a markup percentage, or a negative percentage to calculate a discount.
3. Costs from integrations are then collected together and allocated as infrastructure cost and supplementary cost.
4. The cost is then distributed to resources across the environment. Depending on your organization, these resources may include OpenShift projects, nodes, or clusters, and cloud integration services or accounts. You can also use tagging to distribute the costs by team, project, or group within your organization.

Procedure

1. Log in to the Red Hat Hybrid Cloud Console.
2. From the Services menu, click Spend Management → Cost Management.

3. To view unused cluster capacity and unrequested cluster capacity:

   1. In the Global Navigation, click Cost Management → OpenShift.
   2. On the OpenShift details page, in the Group By menu, select Cluster. Filter by Cluster, then select a cluster from the results.
   3. On the Cost overview tab, you can see your unused capacity and unrequested capacity in the CPU tile. If the unrequested capacity is higher than your unused capacity, or the unrequested core-hours are too high as a percentage of capacity, you can search for the nodes in your cluster that are responsible.

4. To view unused node capacity and unrequested node capacity:

   1. In the Global Navigation, click Cost Management → OpenShift.
   2. On the OpenShift details page, in the Group By menu, select Node. Filter by Node, then select a node from the results.
5. If the unrequested capacity is higher than your unused capacity, or the unrequested core-hours are too high as a percentage of capacity for your node, you can adjust them in your cloud service provider to optimize your cloud spending.

Procedure

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.

Procedure

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 so you can 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. You can also create your price list later.

   1. To apply a monthly node cost of $1,000:

      1. Click Create rate.
      2. For Metric, select Node.
      3. For Measurement, select Count (node-month).
      4. The cost management service classifies node and cluster costs as infrastructure costs by default. To change the cost type you are calculating, select it under Calculation type. See Key concepts to learn more.
      5. In the Rate field, enter 1000 to assign a $1,000 per price to each node in the integrations you select (in a later step).
      6. Click Create rate to save the node rate.

   2. To apply a rate to CPU requests:

      1. Click Create rate.
      2. For Metric, select CPU.
      3. For Measurement, select Request (core-hours).
      4. The cost management service classifies metrics-based data such as CPU requests as supplementary costs by default. To change the cost type you are calculating, select it under Calculation type. See Key concepts to learn more.
      5. In the Rate field, enter 0.09 to apply a $0.09 cost to each core-hour of CPU requests.
      6. Click Create rate to save the CPU request rate.

   3. To apply tag-based rates to persistent volume claims:

      1. Click Create rate.
      2. For Metric, select Persistent volume claims.
      3. For Measurement, select Count (pvc-month).
      4. The cost management service classifies persistent volume claim rates as infrastructure costs by default. To change the cost type you are calculating, select it under Calculation type. See Key concepts to learn more.
      5. Select Enter rate by tag.
      6. Enter a tag key in the Filter by tag key field.

      7. Enter a Tag value and Rate. You can select Default to specify a rate as default for that tag key.

         Note
         • Specifying a default rate will apply that rate to all tag values for the corresponding tag key that are not defined. You can enter a rate of 0 for any tag value that you do not want the default rate applied to.
      8. Click Add more tag values to add as many tag values as you require.
      9. Click Create rate to save the persistent volume claim rates.
   4. Add additional rates by repeating the previous steps, or click Next to finish configuring your 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.

Procedure

1. Log in to Red Hat Hybrid Cloud Console.
2. From the Services menu, click Spend Management → Cost Management.
3. In the Global Navigation, click Cost Management → Settings.
4. In the Cost Models tab, click Create cost model to open the cost model wizard.
5. Enter a name and description for the cost model and select OpenShift Container Platform as the integration type. Click Next.

6. Create a price list so that you can 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.

   1. To create a price list to calculate effective CPU usage, click Create rate.

      1. Add a description. In this example, enter effective cpu usage.
      2. In the Metric field, select CPU.
      3. In the Measurement field, select Effective-usage (core-hours).
      4. In the Rate field, enter the rate you pay for CPU usage. In this example, enter 2. Click Create rate.

   2. To create a price list to calculate effective memory usage, click Create rate.

      1. Add a description. In this example, enter effective memory usage.
      2. In the Metric field, select Memory.
      3. In the Measurement field, select Effective-usage (GiB-hours).
      4. In the Rate field, enter the rate you pay for memory usage. In this example, enter 1. Click Create rate.
7. Click Next.
8. (Optional) On the Cost calculations page, apply a markup or discount to change how raw costs are calculated for your integrations. 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.
9. 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. Click Next.
10. Assign an integration to your cost model and then click Next.
11. Review the details and then click Create.
12. To review the results of your cost model on a integration, in the Global Navigation, click Cost Management → OpenShift.
13. Select a project and view the results.