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Efficient Cloud FinOps
Efficient Cloud FinOps

Efficient Cloud FinOps: A practical guide to cloud financial management and optimization with AWS, Azure, and GCP

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Profile Icon Alfonso San Miguel Sánchez Profile Icon Danny Obando García
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Full star icon Full star icon Full star icon Full star icon Full star icon 5 (5 Ratings)
Paperback Feb 2024 446 pages 1st Edition
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Arrow left icon
Profile Icon Alfonso San Miguel Sánchez Profile Icon Danny Obando García
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€18.99 per month
Full star icon Full star icon Full star icon Full star icon Full star icon 5 (5 Ratings)
Paperback Feb 2024 446 pages 1st Edition
eBook
€22.99 €32.99
Paperback
€41.99
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Free Trial
Renews at €18.99p/m
eBook
€22.99 €32.99
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€41.99
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Renews at €18.99p/m

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Efficient Cloud FinOps

Introduction to FinOps Principles

This chapter aims to introduce the topic we are going to cover throughout the book, which is FinOps, a methodology relating to cloud financial optimization. We will explain why it is so important, and why it has become one of the biggest current IT trends.

In this chapter, we are going to cover the following main topics:

  • What is FinOps, and why do we need another buzzword?
  • Why FinOps?
  • The three pillars of FinOps

What is FinOps, and why do we need another buzzword?

Let’s start by asking the question, what is this new methodology that everyone is talking about and, suddenly, all companies are in need of? It’s a new groundbreaking practice, or way of doing things, that everyone claims will allow you to take control of your cloud costs and revolutionize how we work with cloud resources!

We are, of course, referring to FinOps. Let’s take a look at how it is defined by the FinOps Foundation:

“FinOps is an evolving cloud financial management discipline and cultural practice that enables organizations to get maximum business value by helping engineering, finance, technology, and business teams to collaborate on data-driven spending decisions.”

This is an amazing definition, but we will also provide our own interpretation of the topic. For us, FinOps is about the following things:

  • First, very much like DevOps, it is about teams working together to...

Why FinOps?

FinOps is a cloud cost optimization/cloud financial management methodology, aimed at companies that already work in the cloud or are transitioning to it.

The need for FinOps becomes apparent when companies embark on their cloud journeys or strive for excellence once they are already settled in using it:

  • For newcomers, when the journey to the cloud begins, it becomes apparent that the well-known on-premises rules regarding cost management or capacity management don’t apply anymore. This requires a difficult adaptation as well as training. FinOps can help in this complex process, both optimizing and enabling cloud governance in many ways.
  • If an organization has used the cloud for a few years already, its cloud spend will not be aligned with its initial budget for a number of reasons, such as non-optimized workloads that are migrated through lift-and-shift, constant struggles with inefficiencies, and difficulties in applying a standardized cloud governance...

The three pillars of FinOps

In this section, we will explain our view of the three fundamental pillars upon which a successful FinOps practice should be built.

Let’s describe one by one the three pillars, which are Inform, Optimize, and Operate, and the key points to work on and develop in each one, alongside some examples to illustrate how to get started.

Inform

One of the most important things every FinOps practice must do is to improve the visibility of cloud costs for all the technical, financial, and project management teams. Everyone needs to be initially aware of how costs are distributed between, for example, business units, projects, offices or locations, and cloud regions. This process is often called cost allocation, as it allows you to divide costs across different units.

In many organizations, this is key to enabling two important cloud cost visibility exercises, which are showback and chargeback:

  • Showback refers to the operation of dividing...

Summary

As we are sure you have already determined by what we have covered so far, FinOps is definitely not a one-size-fits-all methodology.

The practice needs to be tailored and adapted to each company’s needs; it’s about doing things in a different way, which is always a challenge in organizations.

FinOps practitioners need to develop a strong knowledge and understanding of what a company needs and how to create value in small, easily obtainable steps from day one, without overreaching and trying to change everything in a month.

It is never easy to change your mindset, so taking one step at a time is often the best way forward.

In the next chapter, we will elaborate and thoroughly explore how FinOps practices can fit with other cloud governance methodologies and best practices.

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Key benefits

  • Learn cost optimization best practices on different cloud services using FinOps principles and examples
  • Gain hands-on expertise in improving cost estimations and devising cost reduction plans for Azure, AWS, and GCP
  • Analyze case studies that illustrate the application of FinOps in diverse real-world scenarios
  • Purchase of the print or Kindle book includes a free PDF eBook

Description

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.

Who is this book for?

This book is for cloud engineers, cloud and solutions architects, as well as DevOps and SysOps engineers interested in learning more about FinOps and cloud financial management for efficiently architecting, designing, and operating software solutions and infrastructure using the public clouds. Additionally, team leads, project managers, and financial teams aiming to optimize cloud resources will also find this book useful. Prior knowledge of cloud computing and major public clouds is assumed.

What you will learn

  • Examine challenges in cloud adoption and cost optimization
  • Gain insight into the integration of FinOps within organizations
  • Explore the synergies between FinOps and DevOps, IaC, and change management
  • Leverage tools such as Azure Advisor, AWS CUDOS, and GCP cost reports
  • Estimate and optimize costs using cloud services key features and best practices
  • Implement cost dashboards and reports to improve visibility and control
  • Understand FinOps roles and processes crucial for organizational success
  • Apply FinOps through real-life examples and multicloud architectures

Product Details

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Publication date, Length, Edition, Language, ISBN-13
Publication date : Feb 23, 2024
Length: 446 pages
Edition : 1st
Language : English
ISBN-13 : 9781805122579
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Product Details

Publication date : Feb 23, 2024
Length: 446 pages
Edition : 1st
Language : English
ISBN-13 : 9781805122579
Languages :
Tools :

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Table of Contents

20 Chapters
Part 1:Get Started with FinOps Chevron down icon Chevron up icon
Chapter 1: Introduction to FinOps Principles Chevron down icon Chevron up icon
Chapter 2: Understanding How FinOps Fits into Cloud Governance Chevron down icon Chevron up icon
Part 2:Inform – How to Increase Cost Visibility Chevron down icon Chevron up icon
Chapter 3: Designing and Executing the Tagging and Naming Convention Strategies Chevron down icon Chevron up icon
Chapter 4: Estimating Cloud Solution Costs and Initiative Saving Chevron down icon Chevron up icon
Chapter 5: Improving Cost Visibility with Dashboards and Reports Chevron down icon Chevron up icon
Part 3:Optimize – How to Get the Most out of Cloud Resources Chevron down icon Chevron up icon
Chapter 6: Implementing IaaS Compute Optimization Chevron down icon Chevron up icon
Chapter 7: Implementing PaaS and Other Compute Optimization Initiatives Chevron down icon Chevron up icon
Chapter 8: Implementing Database Optimization Chevron down icon Chevron up icon
Chapter 9: Implementing Storage Optimization Chevron down icon Chevron up icon
Part 4:Operate – How to Set Up a Governance Model around Cloud Costs Chevron down icon Chevron up icon
Chapter 10: Designing and Implementing FinOps KPIs Chevron down icon Chevron up icon
Chapter 11: Defining New FinOps Roles and Processes Chevron down icon Chevron up icon
Part 5:Hands-On Cost Optimization with Real-Life Use Cases and More Chevron down icon Chevron up icon
Chapter 12: Case Studies for Cost Optimization Chevron down icon Chevron up icon
Chapter 13: Wrapping up and Looking ahead Chevron down icon Chevron up icon
Index Chevron down icon Chevron up icon
Other Books You May Enjoy Chevron down icon Chevron up icon

Customer reviews

Rating distribution
Full star icon Full star icon Full star icon Full star icon Full star icon 5
(5 Ratings)
5 star 100%
4 star 0%
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1 star 0%
S. Schulz Jul 20, 2024
Full star icon Full star icon Full star icon Full star icon Full star icon 5
Teilweise schon recht technisch und viele Use-Cases fehlen sicherlich, man muss aber auch beachten wie neu FinOps ist. Eine etwas andere Perspektive bzw Inhalte als der Klassiker 'Cloud FinOps' und damit als Zweitlektüre zu dem Thema definitiv zu empfehlen. Durch viele sehr konkrete technische bzw Produkt Themen sehr praxisnah und weniger Allgemein. Deshalb auch auf Updates achten, ansonsten ist das Buch in sehr wenigen Jahren sicher veraltet.
Amazon Verified review Amazon
Amazon Customer Jul 29, 2024
Full star icon Full star icon Full star icon Full star icon Full star icon 5
Cloud FinOps is the trend in IT is optimizing cost and understand the governance of managing the cost in Cloud.
Amazon Verified review Amazon
Sakshi Kathote Mar 04, 2024
Full star icon Full star icon Full star icon Full star icon Full star icon 5
"Efficient Cloud FinOps" is a crucial guide for cloud professionals looking to optimize cloud costs and financial management. Targeting cloud engineers, architects, and DevOps, it offers a deep dive into FinOps principles, strategies for cost estimation and optimization, and introduces roles and processes vital for implementing FinOps in organizations. The book's practical approach, combined with real-life case studies, makes it an essential resource for understanding and applying FinOps in the cloud computing landscape.
Amazon Verified review Amazon
Tomica Kaniski Mar 18, 2024
Full star icon Full star icon Full star icon Full star icon Full star icon 5
In the current state of cloud migrations and cloud usage in general, FinOps has become a more and more requested skill, which will get you the most of what you are paying for in the cloud.This book covers the meaning of FinOps and why it is so popular nowadays. It will do it for each type of company (for example, the one that does not have any cloud presence yet, and for the company that has a strong cloud maturity). It will show you the tools and techniques to take better care of the costs in the cloud(s).I think everyone who is doing cloud can benefit from at least skimming through this book - it covers three major clouds, the FinOps tools and practices, and their specifics in inform, optimize, and operate "modes". It helps you uncover the costs so you can more efficiently manage them and shows you how to manage and optimize them, by also using real case study examples. It will make you more "cost-aware"... which is a good thing! Recommending this book.
Amazon Verified review Amazon
DK Feb 27, 2024
Full star icon Full star icon Full star icon Full star icon Full star icon 5
The unique appeal of this book lies in its pragmatic approach, heavily illustrated through real-life use cases. These examples serve not just as theoretical exercises but as tangible, actionable insights that engineers can directly apply to their work. By focusing on actual implementations and outcomes. I am always viewing cloud expenses as a measure of engineering solutions' efficiency. This books helps to make such efficiency real.
Amazon Verified review Amazon
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