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AWS FinOps Simplified
AWS FinOps Simplified

AWS FinOps Simplified: Eliminate cloud waste through practical FinOps

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AWS FinOps Simplified

FinOps Foundation

Before we embark on a FinOps journey, we must level-set expectations and definitions for us to stay on the right path. We’ll begin by justifying the need for FinOps. Operating in the cloud warrants a mind shift from traditional IT procurement practices. For organizations to truly benefit from what the cloud offers, they must align their line of thinking with the variable nature of paying for cloud resources.

We will define what FinOps is and its principles. We’ll use these definitions as set boundaries as we dive deeper into the execution and implications of FinOps on AWS.

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

  • Changing with the cloud
  • Rethinking procurement
  • Defining FinOps

Changing with the cloud

Cloud cost management is hard. A dynamic cloud environment, autonomous teams provisioning IT resources at will, and even changing prices of the resources themselves all complicate cloud cost management. Layer a multi-cloud strategy on top of that and the complexity increases even more. But how come we see companies such as Lyft cutting costs by 40% in 6 months, Etsy achieving a 42% reduction in computing costs, and MicroStrategy optimizing by 30%? Surely cost management appears to be possible.

Cloud cost management is indeed hard but, even more fundamentally, change management is hard. We get so used to the way of doing things. We set up processes, reports, approval mechanisms, and training sessions, then something changes that forces us to re-evaluate and redeploy all our efforts. We not only have to help people understand why things are changing, but we must help people change their behavior to adapt to what’s new.

Cloud cost management is a...

Rethinking procurement

Imagine you grab lunch at a local eatery that provides several culinary options. You can either purchase option A, a sandwich/soup combo at a fixed price, or you can choose option B, the buffet, in a sense, but where you pay based on weight. Given that the buffet has a myriad of food items that you enjoy, you choose to go with the latter. When you select your options, you are sensitive to what and how much you put in the to-go box. On the other hand, if you went with the sandwich/soup combo, there’s less mindful calculation required because you know exactly how much you’re paying. This juvenile example illustrates the mind shift required to go from option A to B where cloud spending is more like the latter.

Those with cloud cost management success stories have already adopted this new way of thinking and dismissed traditional IT procurement processes. In the past (and even in some cases today), the relationship between technology and finance...

Defining FinOps

To put FinOps into context, let’s look at its derivation, DevOps. The industry often describes DevOps as a set of practices that combines software development (Dev) and IT operations (Ops). It involves people, processes, and tools that work together in a collaborative culture to accelerate an organization’s ability to deliver services to customers. DevOps isn’t just one tool, nor is it a one-time event. It’s a repeated and ever-evolving practice that serves to ultimately bring value to an organization. Indeed, if it doesn’t bring value to an organization, it is not something worth pursuing. At the same time, if it’s not bringing value, there might be a chance it’s being implemented incorrectly.

Similarly, FinOps is the merging of financial accountability and management of cloud resources with cloud operations. Much like how DevOps is a combination of cultural philosophies, practices, and tools that advocate a collaborative...

Summary

In this chapter, you learned about the importance of having to change your mindset when running financial operations in the cloud. You cannot use a traditional, centralized IT procurement approach since cloud operations aren’t owned by a single team. Rather, it is much more important to provide autonomy to your business teams to enable them to maximize cloud benefits. We will discuss how to enable your teams to be agile, autonomous, and to bring business value while controlling and managing their cloud spending throughout the remainder of this book.

You also learned that FinOps is a framework and discipline that crosses many teams within an organization. It is a combination of people, processes, tools, and metrics that empowers an organization using the cloud to manage its cloud resources as true assets that bring measurable value to the business. FinOps is not a one-person job, nor should it be owned and managed entirely by scattered teams. Rather, a centralized...

Further readings

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Key benefits

  • Learn best practices for implementing a cloud FinOps discipline with AWS
  • Set up your organization for success by enabling people, process, and organization
  • Choose the right pricing model strategy to optimize the use of AWS resources

Description

Much like how DevOps is a combination of cultural philosophies, practices, and tools that advocate a collaborative working relationship between development and IT operations, FinOps encourages the same collaboration between technology and finance team, making it key relationship to establish and maintain for any thriving business. This book will help you understand how organizations with a mature FinOps practice can decentralize cost ownership to developer teams and encourage cross-functional collaboration between business, finance, and technology, enabling speed, innovation, and business growth. You’ll focus on structuring your organization to form the right FinOps team, including a Cloud Center of Excellence, and learn how to implement practical cost savings measures with AWS tools to optimize costs in both the short as well as long term. By the end of this cloud FinOps book, you’ll be ready to implement a successful Cloud FinOps practice for your organization to get the best value from the AWS cloud for your workloads.

Who is this book for?

This book is for enterprise architects, cloud architects, CFOs, CTOs, product managers, finance managers, and FinOps practitioners looking to optimize their use of the cloud. This book guides you through tools, strategies, and frameworks to minimize costs, allowing your business to realize sustainable financial benefits and efficiently use cloud resources.

What you will learn

  • Use AWS services to monitor and govern your cost, usage, and spend
  • Implement automation to streamline cost optimization operations
  • Design the best architecture that fits your workload and optimizes on data transfer
  • Optimize costs by maximizing efficiency with elasticity strategies
  • Implement cost optimization levers to save on compute and storage costs
  • Bring value to your organization by identifying strategies to create and govern cost metrics
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Publication date : Oct 21, 2022
Length: 292 pages
Edition : 1st
Language : English
ISBN-13 : 9781803247236
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Length: 292 pages
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Table of Contents

17 Chapters
Chapter 1: FinOps Foundation Chevron down icon Chevron up icon
Part 1: Managing Your AWS Inventory Chevron down icon Chevron up icon
Chapter 2: Establishing the Right Account Structure Chevron down icon Chevron up icon
Chapter 3: Managing Inventory Chevron down icon Chevron up icon
Chapter 4: Planning and Metrics Tracking Chevron down icon Chevron up icon
Chapter 5: Governing Cost and Usage Chevron down icon Chevron up icon
Part 2: Optimizing Your AWS Resources Chevron down icon Chevron up icon
Chapter 6: Optimizing Compute Chevron down icon Chevron up icon
Chapter 7: Optimizing Storage Chevron down icon Chevron up icon
Chapter 8: Optimizing Networking Chevron down icon Chevron up icon
Chapter 9: Optimizing Cloud-Native Environments Chevron down icon Chevron up icon
Part 3: Operationalizing FinOps Chevron down icon Chevron up icon
Chapter 10: Data-Driven FinOps Chevron down icon Chevron up icon
Chapter 11: Driving FinOps Autonomously Chevron down icon Chevron up icon
Chapter 12: Management Functions 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
(4 Ratings)
5 star 100%
4 star 0%
3 star 0%
2 star 0%
1 star 0%
Aaron A. Kowall Jun 12, 2023
Full star icon Full star icon Full star icon Full star icon Full star icon 5
Got this with Cloud FinOps book. Was valuable to have this practical guide for how to implement FinOps capabilities in AWS.
Amazon Verified review Amazon
OCLifer Jan 26, 2023
Full star icon Full star icon Full star icon Full star icon Full star icon 5
Looking to start a FinOps practice but not sure where to begin? Not sure where to begin or how to save? Peter's book covers it all. He's read all of AWS service documentation to curate an easy to follow book with practical steps to start saving. Must ready, well worth the time and money invested for a huge gain.
Amazon Verified review Amazon
Andrew C Oct 27, 2022
Full star icon Full star icon Full star icon Full star icon Full star icon 5
As a Chief Product Officer, I've found this book written by Peter Chung to be incredibly information with both strategic and tactical details on how to manage and optimize costs with regard to cloud infrastructure. Peter defines FinOps as "the merging of financial accountability and management of cloud resources withcloud operations" and this book makes it clear on just how to do that. As any leader in the tech industry knows, cloud services and operations are fundamental to any software or digital platform and navigating how large, complex and technical products such as AWS can be tricky and confusing. This is further compounded by the fact that, it nearly requires you to be an expert in the service in order to even attempt to try to optimize financial and cost metrics. Reading this book is a short cut to understanding how to do that and I can't recommend it more.
Amazon Verified review Amazon
Walter Lee Nov 19, 2022
Full star icon Full star icon Full star icon Full star icon Full star icon 5
Just read this new book, AWS FinOps Simplified: Eliminate cloud waste through practical FinOps by Peter Chung (Author). I learned many useful cost optimization and saving ideas/tools from this book, e.g. cost explorer, Anomaly detection with CloudWatch, Implementing tagging policies with SCP, Auditing with CloudTrail, Trusted Advisor, AWS Solutions, FinOps, AWS Billing Conductor, ... etc.I like Part 2 most, i.e. Part 2: Optimizing Your AWS Resources. It has 4 important chapters on how to optimize Compute, Storage, Networking and Cloud-Native environments (Auto scaling, ML, etc...) which can help SAVE a lot of $$$ !I also like Chap 12 which shows how to leverage and reuse existing customer ready AWS Solutions to save costs by instance scheduler and workspace cost optimizer.
Amazon Verified review Amazon
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