Book Image

Efficient Cloud FinOps

By : Alfonso San Miguel Sánchez, Danny Obando García
Book Image

Efficient Cloud FinOps

By: Alfonso San Miguel Sánchez, Danny Obando García

Overview of this book

In response to the escalating challenges of cloud adoption, where balancing costs and maximizing cloud values is paramount, FinOps practices have emerged as the cornerstone of fi nancial optimization. This book serves as your comprehensive guide to understanding how FinOps is implemented in organizations worldwide through team collaboration and proper cloud governance. Presenting FinOps from a practical point of view, covering the three phases—inform, optimize, and operate—this book demonstrates an end-to-end methodology for optimizing costs and performing financial management in the cloud. You’ll learn how to design KPIs and dashboards for judicious cost allocation, covering key features of cloud services such as reserved instances, rightsizing, scaling, and automation for cost optimization. This book further simplifi es architectural concepts and best practices, enabling you to design superior and more optimized solutions. Finally, you’ll discover potential synergies and future challenges, from the integration of artifi cial intelligence to cloud sustainability considerations, to prepare for the future of cloud FinOps. By the end of this book, you’ll have built the expertise to seamlessly implement FinOps practices across major public clouds, armed with insights and ideas to propel your organization toward business growth.
Table of Contents (21 chapters)
Free Chapter
1
Part 1:Get Started with FinOps
4
Part 2:Inform – How to Increase Cost Visibility
8
Part 3:Optimize – How to Get the Most out of Cloud Resources
13
Part 4:Operate – How to Set Up a Governance Model around Cloud Costs
16
Part 5:Hands-On Cost Optimization with Real-Life Use Cases and More

Cloud provider agreements and resource allocation

Choosing the right contract and account, project, and subscription structure under which you will create your cloud resources is one of the first key points that should be considered for cost optimization purposes.

Even though the concepts described in this section won’t result in direct savings being generated, it will allow for better cost visibility and easier management overall.

We are going to cover the differences between a Cloud Solution Provider (CSP) and Enterprise Agreement In Azure, which are licensing or contract models to make use of Azure services, while for AWS and GCP, we will describe strategies to organize your workloads and allow for better cost allocation and visibility.

Azure – Enterprise Agreement versus CSP

In Azure, there are mainly two different models:

  • Enterprise Agreement, where you sign a direct contract with Microsoft that lasts three years, with which you are able to add...