Introducing cost aware design
This book and even this specific chapter, started with the observation that implementing cloud solutions must add value to the business. It’s the most important principle to keep in mind when we’re discussing financial operations. FinOps is not about cutting costs, but about adding value using cloud technology. But inevitably, we will have to deal with costs. Cloud simply doesn’t come for free.
Hence, we need to know what the costs are when we design for cloud. Next, we need to identify risks, since these will also inflict costs when risks materialize. These can be direct costs, but also costs that help us mitigating the risks. Lasty, we must define the expected benefits when we design and implement a solution. Costs, risks, and benefits will facilitate the calculation of the Total Cost of Ownership (TCO) and the Return on Investment (ROI), as shown in the diagram.
The benefits are all about...