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

Indirect versus direct cost metrics

When developing unit metrics for a service, it is important to consider both indirect cost metrics (which refer to the costs incurred prior to production) and direct cost metrics (which are incurred during production). Indirect cost metrics include costs associated with research and development (R&D), marketing, and other non-production expenses. Direct cost metrics, on the other hand, include costs associated with cloud resources, labor, and other expenses that are directly tied to the production of the service.

Choosing the appropriate cost metrics to measure can depend on the specific goals of the organization. For example, a company that is focused on improving its overall profitability may want to focus on reducing indirect costs to improve its margins. Alternatively, a company that is seeking to improve the quality of its services may want to focus on reducing direct costs and improving the efficiency of its production processes.

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