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In this podcast, Jon Myer discusses budgeting and forecasting cloud costs with Jeff Blume, a senior optimization solutions architect at AWS on the Optics team. Jeff starts by explaining the differences between cost estimation, budgeting, and forecasting. Cost estimation focuses on calculating the cost of specific workloads, while budgeting is about allocating resources based on a predefined plan. Forecasting, on the other hand, involves predicting future financial outcomes based on anticipated events and assumptions. To properly forecast cloud costs, Jeff suggests two methods: trend-based forecasting and driver-based forecasting. The trend-based forecast relies on historical patterns, assuming a consistent growth rate. In contrast, the driver-based forecast takes into account changes in demand drivers, such as new product launches, user influx, strategic expansion, or retiring workloads. Jeff emphasizes the importance of communication and collaboration between teams to improve cloud financial predictability. Weekly meetings, variance analysis, and understanding the impact of optimization efforts on the forecast are crucial to achieving accurate predictions. He recommends using AWS tools like AWS Budgets and Cost Anomaly Detection in conjunction with third-party tools to monitor and optimize cloud costs effectively. Furthermore, engaging in the cloud #FinOps community and staying updated on the latest best practices and benchmarks can help organizations save costs and improve their cloud financial management. Overall, establishing open communication, understanding demand drivers, and utilizing appropriate forecasting methods and tools are essential steps to successfully budget and forecast cloud costs. 🔔 Don't forget to Like, Subscribe, and hit the notification 🔔 ✔ Subscribe: https://www.youtube.com/jonmyer/?sub_... 📱 Social Media Twitter:   / _jonmyer   Website: https://jonmyer.com LinkedIN:   / jon-myer   Spotify: https://open.spotify.com/show/0wjJzdI... Protect your AWS Resources with Veeam Backup for AWS: https://vee.am/jonmyer Like my sounds? Here's my audio source: https://www.epidemicsound.com/referra... #aws #awscloud #podcast #podcasting #costoptimization #finops #cloudcost #cloudoptimization ⌚️ Timeline 0:00 Introduction ============================= DISCLAIMERS ============================= We are a participant in the Fiveer, Epidemic Sound, and Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites. This video was not paid for by outside persons or manufacturers. No gear was supplied to me for this video.