FinOps¶

What is FinOps ?¶

FinOps ensures you get the most value out of every dollar you spend in the cloud
- A prescriptive model of actions, best practices and culture…
- that enables distributed product, finance, and business teams…
- to make decisions that increase business value
Concepts:
- Unit Economics:
  - = measure cloud spend against a business metric (total revenue, shipments made, paid subscribers, customer orders completed, etc.)
- FinOps Principles:
  - Teams need to collaborate
  - Decisions are driven by the business value of cloud
    - => focus on the cost per business metric
  - Everyone takes ownership of their cloud usage
  - FinOps reports should be accessible and timely (= opportun)
  - A centralized team drives FinOps
  - Take advantage of the variable cost model of the cloud

The goal of FinOps is not always to do things the cheapest, but to do things in the way that develops the most value

The entire organization needs to shift from a centralized cost control model to one of shared accountabilities
Accountability for usage is distributed to the edge
- Empower feature and product teams to manage their own usage of cloud against their budget
Rate and Discount Optimization Is Centralized
- Centrally govern & control Committed Use Discounts, Reserved Instances, Savings Plans, and Volume/Custom Discounts with Cloud Providers
Most commonly, the FinOps team is aligned within or alongside the tech operations teams