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

Understanding cloud invoices and billing data

One of the first steps to understand cloud costs is to understand how cloud services are billed. In this section, we will learn how to read invoices and cloud bills and understand how billing in the cloud works.

Understanding cloud billing data is not easy at all, and to do so, we must also understand the challenges we might face:

  • It often requires a great deal of knowledge about cloud services and their cost drivers.
  • Cloud providers constantly make changes, such as changing how a service is billed and publishing or retiring cloud services from their portfolio, which will impact billing as well.
  • Billing data and pricing have a strong dependency on our agreement and current contract with our cloud provider. Prices can change over time depending on our contract.
  • There are special purchase models, such as Reserved Instances and Spot virtual machines (which are priced differently from pay-as-you-go models). Using these...