Principles

Question 1

6 FinOps Principles

Answer 1

1. Teams need to collaborate
2. Everyone takes ownership for their cloud usage
3. A centralized team drives FinOps
4. Reports should be accessible and timely
5. Decisions are driven by business value of cloud
6. Take advantage of the variable cost model of the cloud.

Question 2

Teams need to collaborate

Answer 2

• Finance moves at the speed and granularity of IT
• Engineering considers cost as a new efficiency metric
• Continuously improve your practice to gain efficiency and innovation
• Define governance and controls for cloud usage

Question 3

Everyone takes ownership for their cloud usage

Answer 3

• Empower feature and product teams to manage their own usage of cloud against their budget
• Gain visibility into cloud spend at all levels
• Track team-level targets to drive accountability

Question 4

A centralized team drives FinOps

Answer 4

• Centrally govern and control Committed Use Discounts, Reserved Instances, and Volume/Custom Discounts with Cloud Providers
• Centralized discount buying process removes rate negotiations from engineering team consideration
• Granular allocation of all costs, direct or shared, to the teams and cost centers responsible for them

Question 5

Reports should be accessible and timely

Answer 5

• Fast feedback loops result in more efficient behavior
• Visibility helps determine if resources are under- or over-provisioned
• Automation of resources drives continuous improvement

Question 6

Decisions are driven by business value of cloud

Answer 6

• Trending and variance analysis helps to understand why costs increased
• Internal team benchmarking drives best practices and celebrates wins
• Industry peer-level benchmarking determines how your company is performing

Question 7

Take advantage of the variable cost model of the cloud.

Answer 7

• Rightsizing instances and services help drive appropriate resourcing levels
• Comparing pricing between services and resource types drives better decisions