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Cloud Cost Optimization

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  1. MercedesO (Flexera Software) asked a question.

    🌎Earth Day discussion: How are you managing AI spend today?

    It's Earth Day today and it seems like a good time to talk about hot topics we’re hearing more of across organizations:

    I spoke with @MBradley​ (Senior Manager, Product Management) about what he’s been seeing across customers and a few themes popped up:

    •  AI usage is scaling quickly, but governance often isn’t keeping up
    • Costs can rise even in organisations with mature FinOps practices
    • Idle resources (e.g. GPUs, over-provisioned services) are still a major driver of waste

    A few practical tips from Mark:

    •  Start with visibility: you can’t optimise what you can’t see
    • Treat AI usage as part of your broader FinOps strategy (not separate)
    •  Regularly review usage patterns especially for newer AI workloads
    • Here's a link to the Flexera playbook for cloud sustainability

    Question for the Community:

    How are you currently managing or controlling AI usage in your org?

    A.    We’re not tracking it yet

    B.    Basic tracking (e.g. cost visibility)

    C.   Some governance in place

    D.   Advanced optimisation & controls

    Feel free to vote here: https://community.flexera.com/s/feed/0D5PL00000quH6o0AE and comment below to share what’s working or not working for you, it might be useful for others to to know how other orgs are approaching this.

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    Simon Vessey likes this.

  2. Cloud Sustainability -- Carbon Like Cash - Q1-2026 Release

     

    Team Eco's Q1-2026 release marks another significant step forward in how enterprises manage and enforce cloud carbon accountability. This update introduces four EPICs focused on the Carbon Like Cash principle: real-time budget enforcement that mimics financial cost controls, organizational context that links carbon data to actual business operations, deeper integration of carbon impact into existing cost optimization workflows, and enterprise-grade data access for large-scale sustainability analytics.

    Carbon like cash image  

    🤖 Carbon Budget Enforcement -- A watchdog that oversees and enforces team-level cloud carbon budgets, similar to financial cost controls for real-time carbon accountability.

    Carbon Budget Utilization Dashboard

    • Team-level carbon budget engine — Set emission limits for each team, project, or workload (e.g., 10 mtCO₂e per quarter) aligned with organizational structure and net-zero commitments.
    • Real-time emissions versus budget dashboard — Live tracking of carbon usage across AWS, Azure, and GCP against budget trajectories, highlighting variance before it becomes a breach.
    • Predictive breach detection — Forecast-based alerts that detect when a team is likely to overspend, allowing intervention before the quarter ends.
    • Remediation actions — Automated workload management, including pausing idle environments, rescheduling batch jobs to lower-carbon regions, and escalating if no manual response is received.
    • Full action log — Maintain an auditable record of all alerts, recommendations, and enforcement actions — supporting ESG disclosure and internal carbon accountability programs.

     

    📊 Carbon Optimizer Dashboard - The double win dashboard: carbon impact and cost optimization in one view, powered by the Carbon Impact Calculation Engine.

     

    Dashboard image

    •  Carbon Impact Calculation Engine — Transforms existing CCO cost optimization recommendations into quantified carbon and water savings, providing accurate environmental impact metrics for every optimization opportunity. 
    • Unified Sustainability + Cost Dashboard — Provides an integrated view showing environmental impact alongside existing CCO cost recommendations, highlighting the combined cost and carbon reduction (double win) for each recommendation at the resource level. 
    • Environmental Analytics Platform — Trend analysis, comparative assessment, and performance tracking of carbon impact from cloud optimizations support both operational and executive sustainability reporting. 
    • Sustainability Reporting Engine — Executive-level carbon impact summaries, detailed environmental analytics exports, and compliance-ready documentation to facilitate ESG disclosure. 

     

    🗂️ RBD-Based Organizational Contextualization for Power BI - Cloud carbon data mapped to how your business is actually organized — by Country, Business Unit, Department, and Division.

    • RBD mapping engine — Contextualizes CCO resource RBD/Tags into organizational dimensions (rbd_country, rbd_business_unit, rbd_department, rbd_division), allowing sustainability data to be filtered according to the same hierarchy used in financial reporting. 
    • Multi-level Power BI filtering — Dynamic filters throughout the entire organizational hierarchy (Country → Business Unit → Department → Division), with performance-optimized queries and intuitive drill-down navigation. 
    • Automated organizational synchronization — Real-time synchronization of organizational hierarchy from CCO into Cloud Sustainability dashboards; automated onboarding of new organizational units through RBD automation policies. 
    • Organizational visualization suite — Geographic heat maps by country, Business Unit comparison matrices, departmental performance dashboards, divisional trend analysis, and hierarchical tree views for drill-down analysis. 
    • Contextualized report distribution — Sustainability reports are automatically grouped and distributed based on RBD ownership, such as the country manager receiving the country-level report. 
    • Exception handling — Fallback RBD allocation rules for untagged resources, with a validation framework to identify tag gaps and promote tagging hygiene. 

     

    📥 Customer Scheduled Access to Large Datasets -- Enterprise-grade sustainability data export at scale — scheduled, secure, and in the format your analytics stack needs.

    • High-performance scheduled download engine — Scalable scheduling system for all types of sustainability data (emissions, electricity, water, costs) with optimized retrieval, smart caching, and support for CSV, JSON, and Parquet formats. 
    • Flexible data selection framework — Advanced filtering by cloud provider, region, resource type, date range, and custom dimensions; supports large-scale batch downloads with consistent performance. 
    • Customer-managed download platform — Self-service scheduling interface within Flexera One, API endpoints for programmatic schedule management, SDKs and client libraries for automation, and robust error handling with status notifications. 
    • Enterprise security and compliance — Authentication and authorization for scheduled downloads, rate limiting, quota management per customer, field-level security for sensitive sustainability data, and comprehensive audit logging. 
    • Design partner validated — Developed in collaboration with ABB; architecture validated using real-world data volumes and organizational hierarchy needs of large organizations. 

     

    Fixes & Adjustments

    •  RBD synchronization — Stabilized for orgs with high tag churn environments. 
    • Power BI filter performance — Improvements for orgs with large organizational hierarchies (Country → Division drill-downs with 10,000+ resources). 
    • Scheduled download retry logic — Hardened; improved error messaging for failed jobs. 
    • Carbon Impact Calculation Engine — Calibration updated to reflect the latest Greenpixie ISO 14064-certified emissions factors for Q1 2026 

     

     

     

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  3. Introducing Guided Onboarding in Flexera One Cloud Cost Optimization

    Flexera One now includes a Getting Started experience on the landing page for Cloud Cost Optimization (CCO), designed specifically for customers logging in for the first time.

     

    New users are welcomed with guided setup cards that walk them through the essential first steps to quickly configure and begin using CCO.

    What’s included?

    • Connect Cloud Data - Seamlessly link your cloud accounts so spend and usage data can start flowing into Flexera One.
    • Set Up Billing Centers - Define billing groups or cost centers to enable accurate cost allocation and reporting.
    • Set Up Custom Tagging - Configure tag-based dimensions to track costs by business unit, project, or environment.

     

    Why this matters

    This guided onboarding experience is designed to:

    • Accelerate initial setup
    • Reduce time to value
    • Eliminate the need to navigate multiple settings pages
    • Help teams reach meaningful cost insights faster

     

    Learn more: https://docs.flexera.com/flexera-one/cloud/guided-onboarding-experience/

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  4. Azure CSP MCA Support – Now Generally Available (GA)

     

    We’re excited to announce General Availability (GA) of Azure CSP MCA billing integration in Flexera One—bringing enhanced transparency, control, and scalability for CSPs and partners managing Azure costs. While the core capabilities are now fully available, a few advanced features remain feature-flagged and can be enabled via Flexera Support.

     

    GA Capabilities

    • Seamless Azure Cost Management API integration with costs
    • Support for Reserved Instances (RI) and Savings Plans (SP) – Cost and usage visibility
    • Commitment inventory (reservations and savings plans) with expiration and utilization details
    • Account-level configuration is available for child organizations to display either list price, cost price, or both. By default, both the List Price and Cost columns in the Tabular View and dashboards display list price values. To enable the display of list price and cost price values in their respective columns for specific child organizations, contact Flexera Support.
    • L1 Scope: ( Available through UI )
      • Billing Account
      • Billing Profile
      • Customer Tenant
    • L2 Scope : Subscription Scoping ( Not Available on UI )

    Note for subscription scoping

    1. Commitment inventory (reservations and savings plans) with expiration and utilization details is not available 
    2. Rate reduction savings is not available at the subscription scope for Indirect Resellers because the list price is zero at this scope.

     

    Feature-Flagged (Optional Enablement)

    • Savings & Savings % metrics
    • Rate Reduction Savings dashboard

    Note: Reservations usage is 0 due to MS limitations

     

    Business Outcomes

    • Enhanced transparency for CSPs and partners
    • Stronger FinOps governance with scoped access
    • Reduced data exposure risk (least-privilege model)
    • Scalable and flexible billing integration

     

    Product Documentation: https://docs.flexera.com/flexera-one/administration/cloud-settings/bill-data-connections/bill-connect-configurations/microsoft-csp-partner-azure-mca-new/

     

    Please find more about the content of this release in the https://docs.flexera.com/flexera-one/feature-list/new-features-in-2026/march-2026

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  5. Azure Tier-2 CSP (Indirect Reseller) Onboarding Support in Flexera One

     

    We’re excited to announce support for Azure Tier-2 Cloud Solution Provider (CSP) customers, also known as Indirect Resellers, operating under a Modern Commerce Agreement (MCA) through subscription based scoping. This enhancement removes a key onboarding blocker for Tier-2 CSP customers who previously lacked direct access to Azure billing accounts owned by Tier-1 CSPs.

     

    Note: This subscription-level scoping has certain limitations. These limitations are documented and highlighted in the user documentation . https://docs.flexera.com/flexera/EN/Administration/BillConnectConfigsCPSPartnerAzureMCA_CostAPI.htm#cloudsettings_3241311028_1213876

     

     

    Capability

    Flexera One now enables onboarding of Azure Tier-2 CSP customers without requiring access to a Tier-1 CSP billing account.

    • Support for Azure customers purchasing through a Tier-2 CSP (Indirect Reseller) under MCA
    • Subscription-level scoping mechanism
    • Ingestion of Azure billing exports without a billing account ID
    • Accurate visibility into Azure spend at the customer subscription level

     

    Benefits & Outcomes

    • Eliminates onboarding dependency on Tier-1 CSP billing access
    • Expands Azure support coverage for MSP and Indirect Reseller models
    • Improves visibility into Azure spend for Tier-2 CSP customers
    • Enables effective cost management, optimization, and savings tracking
    • Accelerates time to value for Azure customers under MCA

     

    Product Documentation:

     

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  6. CCO - How to depict Azure Portal Billing costs vs Azure Portal Usage costs?

    I have a requirement for CCO dashboards to match Microsoft Invoice amounts on a monthly basis. I understand that by design, CCO uses Azure Cost analysis data vs Azure Billing data (see How Flexera One CCO reconciles with your Azure bill) and have no issue with this design, none the less I am looking for suggestions on whether any mechanisms exist in CCO that could support this requirement. Adding a Bill Adjustment doesn't seem feasible, as adjustments are not based on a percentage vs. a dollar difference that varies by month. I can download monthly billing data and build summarization views, but this would all be off platform. Thank you for any insights.

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    • JohnSorensenDK (Flexera Software)

      @steve_norman​ 

      I agree with your analysis. I personally think that you may want to leverage a “Usage vs. Invoice” side‑by‑side narrative, e.g. instead of forcing CCO to equal the invoice, have it depict two numbers intentionally:

      • Usage Cost (CCO – authoritative for optimization)
      • Invoice Cost (Microsoft – authoritative for finance)

      This could potentially be implemented in CCO dashboards by keeping native CCO cost metrics untouched and clear labeling, e.g.

      • “Azure Usage Cost (CCO)” - CCO native
      • “Azure Invoice Cost (Finance)” - imported summary

       

      Using this approach the difference is explained, not hidden. And you may also want to expose the delta, and then maybe use an explanation along the lines of “Flexera CCO is our authoritative source for usage‑based optimization and forecasting. Microsoft invoices remain the authoritative source for payable amounts. Where they differ, we explicitly surface and explain the delta rather than distorting either system.”

       

      These are just thoughts "off the top" from my side, and you may want to consult with Flexera's or our partners' FinOps practitioners to get better recommendations. And I would very much welcome others to chime in on this topic and maybe share their experiences.

       

      Thanks,

      John Sorensen

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  7. Bill Split RBD Scoping by Bill Source or Cloud Account Identifier

     

    As part of ongoing platform optimization, we have refined the scope of Bill Split Rule-Based Dimensions (RBDs). Bill Split configuration is now limited to a defined set of dimensions that directly map cloud spend to customer ownership.

    This change reduces configuration complexity and helps ensure more consistent and predictable cost allocation, while aligning Bill Split behavior with its intended usage.

     

    Key Changes

    Restricted Dimensions for Bill Split . Bill Split configuration now supports only these dimensions:

    • Cloud Vendor Account (multi-select)
    • Bill Source (multi-select)
    • Billing Account ID (multi-select)
    • CSP Tenant ID (multi-select)

     

    Business Benefits

    • Clearer Allocation Logic: Simplifies configuration by limiting dimensions to those that directly represent customer-level spend.
    • Improved Accuracy: Reduces unnecessary complexity and supports consistent, predictable billing outcomes.
    • Streamlined Experience: Scales across MSP and enterprise use cases while minimizing configuration overhead and ambiguity.

     

    To Use This Update

    1. Navigate to Administration > Cloud Settings > Rule-Based Dimensions
    2. Select Bill Split RBD
    3. Create or edit a rule; note that only the restricted dimensions are available for selection
    4. Use multi-select and search within dropdowns for faster configuration

     

    image 

    Product Documentation: Splitting Billing Data

    Release Notes : Bill Split dimension now limited to bill source or cloud account identifiers

     

    This functionality is now live!

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Cloud Cost Optimization | Flexera