Book Image

AWS FinOps Simplified

By : Peter Chung
Book Image

AWS FinOps Simplified

By: Peter Chung

Overview of this book

Much like how DevOps is a combination of cultural philosophies, practices, and tools that advocate a collaborative working relationship between development and IT operations, FinOps encourages the same collaboration between technology and finance team, making it key relationship to establish and maintain for any thriving business. This book will help you understand how organizations with a mature FinOps practice can decentralize cost ownership to developer teams and encourage cross-functional collaboration between business, finance, and technology, enabling speed, innovation, and business growth. You’ll focus on structuring your organization to form the right FinOps team, including a Cloud Center of Excellence, and learn how to implement practical cost savings measures with AWS tools to optimize costs in both the short as well as long term. By the end of this cloud FinOps book, you’ll be ready to implement a successful Cloud FinOps practice for your organization to get the best value from the AWS cloud for your workloads.
Table of Contents (18 chapters)
Free Chapter
2
Part 1: Managing Your AWS Inventory
7
Part 2: Optimizing Your AWS Resources
12
Part 3: Operationalizing FinOps

Maximizing savings for flexible workloads

As with RIs and SPs, Spot provides you a discount on EC2 usage but with a different rate. Unlike RIs and SPs, Spot is ideal for workloads that can withstand interruption and can be instance-flexible, meaning you generally don’t care which instance type you use to complete a task. For these trade-offs, Spot provides steeper discounts than SPs.

AWS first offered the m1.small instance type back in 2006. At the time of writing, AWS now provides over 400 different types of instances to use. We can safely assume that AWS has a lot of spare capacity. AWS offers this spare capacity to customers with a steep discount compared to on-demand instances on the condition that AWS can retake that spare capacity back when needed. AWS provides a 2-minute warning, so this process doesn’t abruptly terminate your running workload.

Spot terminations were more prevalent in the earlier years of AWS. Today, given the growing number of instances...