In this chapter, we learned and defined the cost structure of current enterprises managing their own data centers. We established a common set of terminology to help us understand and measure the cost benefit of cloud adoption.

We learned how cloud economics drives huge advantages and savings for customers, as well as how the model for pricing has shifted from capital expenditures to operational expenditures, a key difference between legacy systems and cloud native.

Finally, we established strategies for tagging which helped enable detailed cost analysis and traceback. These strategies help optimize architectures.

In the next chapter, we will talk about operational excellence.