Activity-based cost model

Activity-based costing (ABC) is a model used in cloud FinOps to allocate costs to the specific activities that cause those costs to be incurred. ABC aims to provide a more accurate picture of the true costs of delivering cloud services by considering all the costs involved in each activity, rather than just looking at the overall costs of a product or service.

In the context of cloud FinOps, the ABC model helps teams identify the specific activities that drive the cost of delivering cloud services, and how changes in those activities can impact the costs. This information is used to inform decisions about pricing, cost optimization, and resource allocation. For example, if a particular activity is found to be driving a large portion of the costs, FinOps teams can examine ways to improve the efficiency of that activity or find alternative methods of delivering the same service that may be less expensive.

Overall, the ABC model is a useful tool for cloud...