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Glossary

Key terms used throughout the CLARITY platform and documentation.

General

TermDefinition
FinOpsCloud financial management — the practice of bringing financial accountability to cloud spending through collaboration between engineering, finance, and business teams.
ProviderA cloud platform: Amazon Web Services (AWS), Microsoft Azure, or Google Cloud Platform (GCP).
CredentialEncrypted cloud account access information stored in CLARITY. Used to authenticate with provider APIs for data collection.
SyncThe automatic process of collecting cost data, resource inventories, metrics, and recommendations from cloud provider APIs.
TierA subscription level that controls which CLARITY features are available to your organization.

Cost Terminology

TermDefinition
MTDMonth-to-date. The cumulative cost from the first day of the current month through today.
Waste RatioThe percentage of total cloud spend identified as confirmed waste (idle or unused resources).
Cost AllocationThe process of assigning cloud costs to specific teams, projects, or business units based on rules.
ShowbackDisplaying cloud costs to teams for visibility and awareness, without actually billing them.
ChargebackBilling internal teams or departments for their actual cloud resource usage.
Cost CenterAn organizational unit (team, department, or project) that owns and is responsible for cloud costs.
Allocation RuleA condition that maps cloud resources to cost centers based on tags, services, accounts, or other attributes.
Tag ComplianceThe percentage of cloud resources that have proper cost-attribution tags applied.

Optimization

TermDefinition
Right-sizingAdjusting a resource's capacity (CPU, memory, storage) to match its actual usage, eliminating over-provisioning.
InsightAn observation about a resource's usage pattern, such as "this instance is idle" or "this volume is underutilized."
RecommendationAn actionable optimization suggestion with estimated savings, such as "downsize this instance from m5.xlarge to m5.large."
AnomalyAn unexpected cost deviation that significantly exceeds the historical baseline for a service or resource.

Commitments

TermDefinition
RI (Reserved Instance)An AWS commitment to use a specific instance type for 1 or 3 years in exchange for a discounted hourly rate.
SP (Savings Plan)An AWS commitment to a consistent amount of compute usage (measured in $/hour) for 1 or 3 years.
CUD (Committed Use Discount)A GCP commitment to use a specific amount of compute resources for 1 or 3 years at a discounted rate.
ReservationAn Azure commitment type similar to AWS Reserved Instances, offering discounts for pre-committed capacity.
Commitment CoverageThe percentage of eligible on-demand spend that is covered by active commitments (RIs, SPs, CUDs, or Reservations).

Kubernetes

TermDefinition
NamespaceA Kubernetes logical partition used to organize workloads. CLARITY tracks costs at the namespace level across EKS, AKS, and GKE.

AI Analysis

TermDefinition
Batch ValidationThe automated AI review of all findings (recommendations, insights, anomalies) after each cloud data sync.
On-Demand ExplainA per-resource AI analysis triggered by clicking "Explain" on any finding, returning detailed context and action steps.

Next Steps

Multi-Cloud FinOps Platform