Developing Metrics for Unit Economics
Unit economics in cloud FinOps refers to the analysis of the costs and revenue associated with delivering a single unit or product within the cloud services offered by a business. The purpose of unit economics analysis is to understand the financial performance of these individual units, and how changes in costs can impact the overall profitability of the business. This information is used by FinOps teams to make informed decisions about pricing, cost optimization, and resource allocation, as well as identify opportunities for improving efficiency, reducing waste, and minimizing costs. In short, unit economics is a critical aspect of cloud FinOps, providing valuable insights for improving the financial performance of cloud-based businesses.
In this chapter, we will learn about the following:
- What is cloud unit economics?
- Indirect versus direct cost metrics
- Tracking costs back to business benefits
- Developing metrics for unit...
