FinOps
Financial Operations and Cost Optimization
Overview
FinOps (Financial Operations) combines financial practices with cloud cost management to optimize spending, ensure accountability, and maximize business value.
FinOps Framework
FinOps Maturity Model
Maturity Levels:
- Level 1: Visibility - Basic cost tracking and dashboards
- Level 2: Optimization - Rightsizing, spot instances, automation
- Level 3: Governance - Chargeback, budgets, quotas
- Level 4: Culture - Cost-aware culture, continuous improvement
FinOps Practices
Cost Optimization
FinOps Guides
| Document | Description | Status |
|---|---|---|
| Tagging Strategies | Cost attribution | ✅ Complete |
| Chargeback Models | Cost allocation | ✅ Complete |
| Lifecycle Management | Data tiering | ✅ Complete |
| Cost Monitoring | Cost observability | ✅ Complete |
Quick Wins
Immediate Actions
- Enable tagging: Tag all resources with CostCenter, Environment
- Use spot instances: 60-80% compute savings
- Set up budgets: Budget alerts and anomaly detection
- Enable lifecycle policies: Automated tiering
- Create dashboards: Cost visibility for all teams
Long-Term Strategy
- Implement chargeback: Allocate costs to teams
- Automate optimization: Automated rightsizing and scheduling
- Governance: Budgets, quotas, approval workflows
- Culture training: Cost-aware engineering culture
- Continuous monitoring: Track and optimize continuously
Key Takeaways
- Visibility: Tag all resources, track costs
- Optimization: Spot instances, rightsizing, serverless
- Governance: Chargeback, budgets, quotas
- Culture: Cost-aware engineering culture
- Automation: Automate optimization and monitoring
- Monitoring: Dashboards, alerts, anomaly detection
- Savings: 70-90% possible with FinOps practices
- Use When: All cloud platforms, cost optimization
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