cost finding and optimization

[Phani1]

Hi Team,

Could you please suggest the best way to track the cost of Databricks objects/components? 

Could you please share any best practices for optimizing costs and conducting detailed cost analysis?

Regards,

Phanindra

[Kaniz_Fatma]

Hi @Phani1,

1.  Understand Databricks Units (DBUs):

1. • A DBU (Databricks Unit) is the fundamental unit of consum
   • ption within the Databricks platform.
   • DBUs are based on the number of nodes and the computational power of VM instance types in your clusters.
   • Each cloud provider may have slightly different DBU rates, but you can find DBU calculators for AWS, Azure, and GCP on the Databricks website.
   • To convert DBU usage to dollar amounts, consider the workload type (e.g., Automated Job, All-Purpose Compute, SQL Compute) and the subscription plan tier (Standard, Premium, or Enterprise).

2. Cluster Policies for Cost Control:

   • Since costs are tied to compute resources (specifically clusters), manage Databricks workspaces through cluster policies.
   • Cluster policies allow you to restrict DBU consumption based on attributes like instance types, autoscaling, and maximum cluster size.
   • By defining policies, you can prevent runaway costs while ensuring user productivity.

3. Monitor Usage and Billing:

   • Alongside cluster policies, monitoring is essential.
   • Admins should have the ability to track costs, analyze usage patterns, and identify areas for optimization.
   • Use tools like Azure Cost Manager or other cost reporting mechanisms to gain visibility into Databricks expenses.

Remember, optimizing costs doesn’t mean compromising productivity. By implementing these practices, you can effectively manage Databricks costs without hindering user ...