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Uploaded byJavier Turégano Molina
FinOps
The document discusses the importance of effective budget management and rapid feedback loops in financial operations (FinOps). It emphasizes the necessity of optimizing AWS costs through strategies like rightsizing, autoscaling, and tagging. The conversation touches on spending, measuring, and learning to make informed financial decisions.
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FinOps
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- 8. The original feedbackloop Speeeeeeeend Bad news Freeeeeeeeze Buy ALL The Things Budget
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- 11. Focusing in whatmatters 30% 50% 10% AWS cost FY15 FY16 FY17
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- 15.
- 17. … You payfor it – Katerina Martianova (REA)
Editor's Notes
- #2 Hello everyone, my name is Javier Turegano and I am the Infrastructure and Architecture manager at realestate.com.au. I am here to tak about FinOps or how Finance and Operations can collaborate better.
- #3 For someone with an engineering background like me talking to the finance people always has felt a bit like this. OPEX, CAPEX, EBIDTA, Below the line, depreciation, taxes were not part of my vocabulary.
- #4 And this is how many times the conversation ended. Where is my money? What happened to my budget? Not having a common language was really frustating for both parts.
- #5 This problem sounds familiar: functional teams operating in different silos. Not sharing: - Goals - Incentives - Vocabulary And sometimes they don’t even sit in the same floor.
- #6 Could we use some of the lessons that we have learned in the Devops community to facilitate this collaboration?
- #7 Meet Katerina, who joined the REA finance team as IT Commercial manager in 2015. A Russian finance person and a Spaniard from IT walk into a bar… I mean an Australian business, and they want to change the game. This is not a joke.
- #8 Attending standups which at the beginning may have sound like an alien speech and sharing the day to ay with the teams created a common ground for us to start cooperating.
- #9 But where did we started? Feedback loops are probably familiar to anyone working in IT. This is how my finance feedback loop looked like in the pass. Explain graph.
- #10 This is how it looks like now. We work in shorter iteraions of spending, measuring and learning. Katerina generates a montly report where I can review how my people, tech, training, entertainment budgets are tracking and act accordingly.
- #11 Attending standups which at the beginning may have sound like an alien speech and sharing the day to ay with the teams created a common ground for us to start cooperating.
- #12 Thorugh this constant conversation and short feedback loops we’ve been able to identify some of the biggest problems. As you can see our growth of the expenditure in the cloud looks somehow exponential. With a 10% growth in the first year, then 30% and 50% on the last year. There are reasons for this but could we optimize it and get it back into control?
- #13 As with any problem understanding the domain knowledge is key to provide meaningful solutions. And the economics around AWS are more and more complicated. You need to understand usage types, accounting, elasticity, utilization, rightsizing, severless, etc...
- #14 And we started with a Hackday project. We run hackdays every three months and they are a great opportunity to create something quick and share it with the rest of the business. Our focus was to provide visibility into who was spending what and if that expendeture could be qualified as some sort of waste.
- #15 We’ve created an information radiator that we could put in front of everyone. I am sure this will resonate with the Devops community. Making the opportunity visible was the first step to make this something important to everyone.
- #16 From there we got some extra budget to develop enforce-o-tron. An AWS event driven serverless tool that terminates any resources that were not properly tagged with a costcode that will allow us to identify which business unit was accountable for the cost.
- #17 You are probably familiar with Wernel’s statement: You build it, you run it. Again something that could easily be another of the Devops principles. Helps keeping the accoutnability in the teams that create the services and helps to incentivate good behaviours around the health of our services because in your own interest.
- #18 You are probably familiar with Wernel’s statement: You build it, you run it. Again something that could easily be another of the Devops principles. Helps keeping the accoutnability in the teams that create the services and helps to incentivate good behaviours around the health of our services because in your own interest.
- #19 WHAT ARE THE NEXT STEPS And now that we have visibility and ownership of the accounts we can't stop here. We are up to help the different teams save money via recommendations, trainning and clustering.
- #20 OUTCOMES SO FAR So far we are aiming to reduce our yearly cost by 15%. Only in the first week of running enforce-tron we were able to kill 60 unclaimed instances. Cost saving activities are common between the different teams.
- #21 The two take aways from my talk are: - Don’t understimate the power of collaborating and learning from other functional areas. - Don’t understimate the amount of hot-pot that FinOps cost optimizations can buy. Thank you.