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FinOps: A Culture Transformation to Bring DevOps, Finance and the Business Together (Sponsored by Cloudability) - AWS Summit Sydney


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Ten years ago, DevOps broke down the silos between Engineering and Ops and accelerated the pace of innovation. Today, a similar pattern is emerging where effective cloud infrastructure adoption and usage requires a deep collaboration between technical teams (DevOps) and their new partners in finance and business. Attendees will learn from cloud innovators how to scale their cloud adoption by collaborating across operations, development and finance to continuously optimise cloud spend, using an emerging practice known as FinOps.

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FinOps: A Culture Transformation to Bring DevOps, Finance and the Business Together (Sponsored by Cloudability) - AWS Summit Sydney

  1. 1. S U M M I T SYDNEY
  2. 2. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T FinOps: A Culture Transformation to Bring DevOps, Finance and the Business Together J.R. Storment President, FinOps Foundation Co-Founder, Cloudability Mike Fuller Principal Systems Engineer, Atlassian
  3. 3. Welcome to the Cloud Economy
  4. 4. The Rise of the Cloud Economy Cloud spending has reached a tipping point Fixed Cost CapEx Weighted Spend Datacenter Centric IT Born in the Web Companies 2000’sPre- 2000’s EC2 Launched, Rise of Agile, Lean, & Devops 2006 Variable Cost OpEx Weighted Spend Cloud Centric IT Now Public Cloud Spend $360B by 2022
  5. 5. 451RESEARCH.COM ©2018 451 Research. All Rights Reserved. • More than half (57%) worry daily about cloud cost management. • 69% regularly overspend their budget by at least 25%. • Only 35% of line of business owners are shown their cloud spend (showback/chargeback). • Poor cloud financial management hurts the business • 25% say innovation has suffered • 53% have stalled or halted their cloud migrations New Research Finds Enterprises Uneducated and Unprepared to Manage Multi-Million Dollar Cloud Budgets
  6. 6. Engineers who can now spend company money at will DevOps + Cloud has broken traditional procurement
  7. 7. A New Reality for Enterprise IT has Arrived Decentralised Buying Material Cloud Spend Fixed -> Variable Macroeconomic Instability New Operating Model is Required
  8. 8. Bringing financial accountability to the variable spend model of cloud, enabling distributed IT, finance, and business teams to tune for speed, cost, or quality. FinOps The Operating Model for the Cloud
  9. 9. FinOps Operating Model Fundamentals IT, Finance, & LoB Collaboration Performance Benchmarking Real-Time Decision Making Understand Fully Loaded Costs Predict, Plan, & Purchase Capacity
  10. 10. Defining the cross-functional team and competencies needed Cultural Shift
  11. 11. The Language of FinOps
  12. 12. Spend = usage x rate Anatomy of the Cloud Bill
  13. 13. Empower feature and product teams to manage their own usage of cloud against their budget With FinOps, Accountability is Pushed to the Edge
  14. 14. Centrally govern & control Committed Use Discounts, Reserved Instances and Volume/Custom Discounts with Cloud Providers Rate and Discount Optimisation is Centralised FinOps Team
  15. 15. Inform Visibility & Allocation Optimise Utilisation & Rates Operate Continuous improvement & operations Culture & Governance The FinOps Lifecycle
  16. 16. Inform: the Prius Effect
  17. 17. FinOps Practice brings 10-40% Efficiency Gains Actual results from new customer during week 3 of their onboarding
  18. 18. Optimise Taking the right actions depending on your goals
  19. 19. Operate Continuous improvement and decision making
  20. 20. Metrics-Driven Cost Optimisation RI Coverage Rate RI Savings RI Utilisation Unrealised Savings Total Reserved Units
  21. 21. Crawl, Walk, Run Crawl Walk Run Visibility & allocation of cloud spend Reliant on vendor invoices and manual reconciliation > 1 Day for partial visibility Limited retention of granular historical data < 1 Hour or near real-time visibility of all spend All current & historical data retained Showback or Chargeback Inability to provide teams an accurate accounting of cloud spend Cloud spend is allocated to teams based on estimated usage of resources Teams understand their portion of cloud spend based on actual consumption Team budgets Teams have no budgets Teams have budgets Teams budget and track spend against budgets Committed 
Savings 0-20% of cloud services purchased via reserved instances 40-50% of cloud services purchased via reserved instances 80-100% of cloud services purchased via reserved instances Find and remove underutilised services Every few months Weekly Automated & policy driven
  22. 22. Published in late 2019 by O’Reilly Media Cloud Financial Management Building a culture of FinOps
  23. 23. The Cloudability Platform for FinOps AWS
  24. 24. Cloudability FinOps Success Services FinOps Advisory Services Visibility FinOps Practice Management We will do it for you. Leverage our experience to build and deliver your FinOps practice. FinOps Service Packs Cloud Private Pricing Business Review Training & Working Sessions Visibility & Allocation Tagging Strategy Budgets & Forecasting
  25. 25. FinOps Nirvana: drive better unit economics
  26. 26. For more information, visit us at our booth Pick up your free copy of Cloud Control