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

Target operating model and FinOps

A Target Operating Model (TOM) is a strategic framework that seeks to define what a company is, essentially describing the vision of an organization and how it achieves its business goals.

Even though there are different approaches and definitions, a TOM usually includes the following core components:

  • Processes
  • Technology
  • Organization structure
  • People and skills
  • Governance and decision-making
  • Culture and leadership
  • Customer experience

FinOps practices have an impact on a lot of areas that are defined in the TOM, such as processes, technologies, people, and skills. To properly implement FinOps in an organization, we have to change how an organization behaves in some areas, mainly the parts of the TOM that are related to the cloud and technology. As you can already imagine, this is no small task, and entails many challenges along the way.

As an example, we will use Deloitte Luxembourg operating model, which...