Book Image

FinOps Handbook for Microsoft Azure

By : Maulik Soni
Book Image

FinOps Handbook for Microsoft Azure

By: Maulik Soni

Overview of this book

To gain a competitive edge in today's unpredictable economic climate, you’ll need to unravel the mystery of saving costs on Microsoft Azure Cloud. This book helps you do just that with proven strategies for building, running, and sustaining repeated cost optimization initiatives across your organization. You’ll learn how to collaborate with finance, procurement, product, and engineering teams to optimize your cloud spend and achieve cost savings that can make a significant impact on your bottom line. The book begins by showing you how to effectively monitor and manage your cloud usage, identify cost-saving opportunities, and implement changes that’ll reduce your overall spend. Whether you're a small start-up or a large enterprise, this book will equip you with the knowledge and skills needed to achieve cost savings and maintain a lean cloud infrastructure. As you advance, you'll find out how to benchmark your current cloud spend and establish a budget for cloud usage. Throughout the chapters, you’ll learn how to negotiate with your cloud provider to optimize your rate, allocate cost for the container, and gain a solid understanding of metric-driven cost optimization. By the end of this FinOps book, you’ll have become proficient in Azure Cloud financial management with the help of real-world examples, use cases, and scenarios.
Table of Contents (19 chapters)
1
Part 1: Inform
6
Part 2: Optimize
11
Part 3: Operate

Showback and chargeback shared AKS clusters

In economics, the tragedy of the commons is characterized by individuals having unrestricted access to resources, resulting in overuse and depletion to the detriment of society. This same issue can be seen with shared computing resources, with application owners believing that cloud infrastructure is limitless and practically free. This can lead to over-provisioning and underutilization, which is why there needs to be a shared understanding of accountability among the finance department, DevOps, software developers, and application owners.

Implementing a chargeback program for an AKS cluster requires the following steps, shown in Figure 10.9:

Figure 10.9 – The chargeback program steps

Figure 10.9 – The chargeback program steps

While we have talked about allocating costs for an AKS cluster using Kubecost, we haven’t yet discussed showback and chargeback. In the following example, we have an AKS cluster hosting two workloads – Azure...