[Power BI] Add commitment discount KPIs

📝 Scenario

As a FinOps practitioner, I need to monitor targeted health KPIs for commitment discounts in order to ensure commitment discounts are being maximized within my organization

💎 Solution

Add the following KPIs to the Commitment discounts report:

• Total number of commitment discounts bought
  • Formula: Sum of commitment discounts bought per month (by type)
  • Assumption: consider limitations of each commitment discount restrictions
  • Objective: To measure the total number of commitment discounts purchased that will generate savings
  • Value: This metric demonstrates the organization's commitment to cost optimization, resource assurance, and strategic cloud resource planning through the purchase of commitment discounts. It provides insights into the cloud cost management strategy and capacity planning efforts.
    • A higher value: indicates a greater commitment to optimize the cloud cost, which typically results in higher cost savings. It's important to ensure that these commitment discounts are effectively utilized and periodically review.
    • A lower value: means that the organization may rely more on on-demand resources or may not have as many committed resources in use. A cost-benefit analysis should be done periodically to determine if it is cost effective to use commitment discounts for some or all the cloud resources.
• Savings from commitment discounts
  • Formula: Total amount of saving (YTD; by type)
  • Assumption: The commitment discount is purchased when the consumption of a resource is almost constant. The Savings compare, the average spend over the last 3 months before the commitment discount was applied with the actual monthly spend.
  • Objective: To measure the total optimization obtained by commitment discounts.
  • Value: It provides insights into the organization's commitment to cost savings, cost efficiency, and financial optimization in the cloud.
    • A higher total amount of savings: indicates that the organization has effectively leveraged RIs to achieve substantial cost savings. This reflects strong cost management and financial efficiency.
    • A lower total amount of savings: suggests that the organization has not fully realized the potential cost savings offered by Reserved Instances, possibly due to underutilization or a lack of commitment.
• % effectively used commitment discounts
  • Formula: Percentage of infrastructure purchased under Saving Plan and Reserved Instance model in use, versus the total infrastructure purchased under those models.
  • Objective: To measure the percentage of infrastructure purchased as SPs and RIs that is effectively in use.
  • Value: This metric provides information on the effective use of the infrastructure that has been purchased under a specific model with a commitment to use.
    • A higher value: indicates a correct identification of the demand for a specific infrastructure, which will imply certain savings.
    • A lower value: indicates an incorrect identification of the demand for a specific infrastructure, which will imply incurring unnecessary costs due to the signed commitment to use.

🙋‍♀️ Ask for the community

We could use your help:

1. Please vote this issue up (👍) to prioritize it.
2. Leave comments to help us solidify the vision.

Start by locating the Commitment discounts report and its existing KPI definitions. Confirm how commitment discounts, Savings Plans, and Reserved Instances are represented before defining the three formulas; done means the report includes all three KPIs with agreed calculations and usage by type.