Migrating to the cloud is like visiting an all you can eat buffet in Las Vegas: an endless selection of virtually anything edible. Take a virtual machine as a comparison. In the cloud there is an almost endless number of different instance types available. For example, there is the burstable Compute-T Family, suitable for ad hoc or non-productive workloads, or GPU-optimized instances such as P3 or Inf1, suitable for machine learning and many more.
Apply this to virtual machines as well.
On-demand is probably the most expensive, but you are flexible and there is no purchase obligation. With Reserved Instances (RIs) you could save a lot of money, but you would have to commit for one or three years. Are you willing to do this for such a long period? Maybe a spot instance is even more impressive? Up to 90% discount compared to on-demand is a really lucrative offer. There are so many factors and options; which one is the right combination for you? At the buffet we can try everything, but our stomach has a limit. In the cloud, on the other hand, we have to pay for everything we consume, and the costs can quickly skyrocket.
The same is true for the optimisation of your cloud spending. We have seen numerous cases in practice where we have been able to avoid waste and optimise the use of resources. You should keep an eye on how much you want to spend at most in the cloud. Always know for which services you pay the most and why? Caution is required with unused and underutilized cloud resources. Automatically shut them down if possible, can save a lot of money. Continuous improvement must be integrated into our daily work and the awareness of costs must be anchored in our culture and attitude.
This is also one of the goals of the FinOps Foundation.
The Name FinOps combines Finance and Operations. It is an approach that brings people in IT, business and finance closer together and creates awareness and transparency in dealing with cloud costs. Central to this is also the exchange of experiences between members. There are countless tips and tricks, not only on the level of tools, but even more on the organizational level. How is cost control managed and governed, how are resources effectively tagged in order to calculate and charge costs per unit? How can you create a cloud business case that goes beyond a simple TCO calculation? How to quantify employee productivity, operational resilience, business agility and value?
Especially in difficult times like today, many companies complain that their cloud invoices are getting out of hand.
If you are looking for support from a professional in this field, contact our FinOps experts. We can provide services and advice that cover both technical and non-technical aspects of your cloud spend.
We can show you where and how you can start to optimise your cloud costs and achieve continuous improvements.
You don’t have to be great to start, but you have to start to be great!
Do you want to know more about our service offerings around cloud optimisation and would you like a personal exchange with an expert?
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