How tagging provides better management of cloud costs

With inflation driving up costs globally, chief information officers (CIOs) are under increasing pressure to justify their expenditures and reduce costs. To do this, CIOs need data on where the budget is spent and how their expenditures are driving cost benefits — in both their own data centers and the cloud.

Tagging is a core component of generating such data and is essential for managing any IT cost, be it related to software or hardware, on-premises or the cloud. Tags are metadata — data about data — attached to an IT resource (i.e., hardware, software, services or data) that describes its characteristics, such as its purpose and owner. By using tags, enterprises can track their purchases, ensuring resources are effectively utilized and deliver a return on investment.