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FinOps principles

Get a deep dive into a set of 4 key FinOps principles to implement a FinOps methodology at your company
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Private clouds have regions, tenants, clusters, etc. Public clouds have linked accounts, regions, IAM users and so on. Usually, it is a complex task to figure out how much is spent on each application or by any team but this is crucial to understand bottlenecks, budget & forecast and avoid wastage.

Visibility, in case of FinOps, means identifying organizational units and mapping them onto cloud resources with preserving historical data for further trend analysis.

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Cloud cost optimization

Cloud optimization looks like a low hanging fruit, but we have good and bad news for you. The good news is that in the majority of the cases it is a quick way to get some instant results from FinOps. The bad news  –  you have to work on this constantly. One time optimization gives results, however in a few months you can get back to your previous cloud bill.

There are a few practices you can use to optimize cloud resources and reduce cots. But the most important thing is to establish a process of smart resource usage.

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Being able to see historical data of your cloud spending and optimize it is important but it’s crucial to have an opportunity to build a process when funds are allocated and used only for what they should and with an option to manage and forecast the expenses.

The benefits of the control are obvious but let’s summarize them:

  • It’s the main driver of constant optimization when there are no hidden costs, orphaned or unused resources.

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By collaboration in building a FinOps process, we mean not only interaction within a team of engineers or within one department but cross-functional collaboration within a company where engineers, operational, finance and executive teams are involved.

Because actions and decisions made by one functional team influence others, and the impact can be significant or even fatal for a business. Just imagine the case when an R&D team starts a new project and provisions hundreds of new VMs for that without proper budget planning. 

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