| Preface |
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xix | |
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Part I Introducing FinOps |
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1 | (16) |
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Defining the Term "FinOps" |
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1 | (1) |
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The FinOps Hero's Journey |
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2 | (2) |
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Where Did FinOps Come From? |
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4 | (3) |
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Data-Driven Decision Making |
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7 | (1) |
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Real-Time Feedback (aka the "Prius Effect") |
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8 | (2) |
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Core Principles of FinOps |
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10 | (1) |
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When Should You Start FinOps? |
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11 | (3) |
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Starting with the End in Mind: Data-Driven Decision Making |
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14 | (1) |
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15 | (2) |
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17 | (12) |
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Use Cloud for the Right Reasons |
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17 | (2) |
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Cloud Spend Keeps Accelerating |
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19 | (2) |
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The Impact of Not Adopting FinOps |
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21 | (5) |
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Informed Ignoring: Why Start Now? |
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23 | (3) |
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26 | (3) |
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3 Cultural Shift and the FinOps Team |
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29 | (20) |
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Deming on Business Transformation |
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29 | (1) |
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30 | (2) |
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32 | (1) |
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The FinOps Team Doesn't Do FinOps |
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33 | (1) |
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The Role of Each Team in FinOps |
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34 | (2) |
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Executives and Leadership |
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34 | (1) |
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Engineering and Developers |
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35 | (1) |
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35 | (1) |
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35 | (1) |
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Product or Business Teams |
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35 | (1) |
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36 | (1) |
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A New Way of Working Together |
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36 | (1) |
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Where Does Your FinOps Team Report? |
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36 | (2) |
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Understanding Motivations |
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38 | (3) |
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38 | (1) |
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39 | (1) |
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Executives and Leadership |
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40 | (1) |
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Procurement and Sourcing People |
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40 | (1) |
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FinOps Throughout Your Organization |
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41 | (1) |
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41 | (2) |
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43 | (4) |
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Difficulty Motivating People Is Not New |
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44 | (2) |
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46 | (1) |
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46 | (1) |
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Tipping the Scales in Your Favor |
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46 | (1) |
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47 | (2) |
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49 | (14) |
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Defining a Common Lexicon |
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50 | (1) |
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51 | (3) |
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Defining Finance Terms for Cloud Professionals |
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54 | (2) |
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Abstraction Assists Understanding |
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56 | (2) |
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Cloud Language Versus Business Language |
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58 | (1) |
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Creating a Universal Translator Between Your DevOps and Finance Teams |
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59 | (1) |
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The Need to Educate All the Disciplines |
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60 | (1) |
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Benchmarking and Gamification |
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60 | (1) |
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61 | (2) |
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5 Anatomy of the Cloud Bill |
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63 | (16) |
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63 | (1) |
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64 | (1) |
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Basic Format of Billing Data |
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65 | (2) |
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Time, Why Do You Punish Me? |
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67 | (1) |
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68 | (1) |
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A Brief History of Cloud Billing Data |
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69 | (3) |
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The Importance of Hourly Data |
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72 | (1) |
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72 | (1) |
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73 | (1) |
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Two Levers to Affect Your Bill |
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73 | (1) |
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Who Should Avoid Costs and Who Should Reduce Rates? |
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74 | (1) |
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Centralizing Rate Reduction |
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75 | (1) |
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Why You Should Decentralize Usage Reduction |
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76 | (1) |
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77 | (2) |
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79 | (20) |
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80 | (1) |
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Different Executive Pitches for Different Levels |
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81 | (5) |
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82 | (1) |
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83 | (2) |
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Sample Headcount Plan for Advancing a FinOps Team |
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85 | (1) |
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Pitching the Executive Sponsor |
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86 | (1) |
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87 | (1) |
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Key Personas That the Driver Must Influence |
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88 | (2) |
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88 | (1) |
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89 | (1) |
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89 | (1) |
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90 | (1) |
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Roadmap for Getting Adoption of FinOps |
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90 | (5) |
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Stage 1 Planning for FinOps in an Organization |
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91 | (2) |
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Stage 2 Socializing FinOps for Adoption in an Organization |
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93 | (1) |
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Stage 3 Preparing the Organization for FinOps |
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94 | (1) |
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Type of Alignment to the Organization |
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95 | (1) |
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Full Time, Part Time, Borrowed Time: A Note on Resources |
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96 | (1) |
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A Complex System Designed from Scratch Never Works |
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97 | (1) |
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98 | (1) |
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7 The FinOps Foundation Framework |
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99 | (10) |
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An Operating Model for Your Practice |
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100 | (1) |
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100 | (2) |
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101 | (1) |
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101 | (1) |
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102 | (1) |
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102 | (1) |
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102 | (4) |
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103 | (1) |
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Structure of Capabilities |
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104 | (2) |
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Adapting the Framework to Fit Your Needs |
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106 | (1) |
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Connection to Other Frameworks/Models |
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107 | (1) |
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108 | (1) |
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109 | (26) |
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Build Versus Buy Versus Native |
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109 | (5) |
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When to Use Native Tooling |
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110 | (1) |
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111 | (1) |
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112 | (2) |
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Operationalized Reporting |
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114 | (5) |
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114 | (2) |
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Perfect Is the Enemy of Good |
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116 | (1) |
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116 | (2) |
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118 | (1) |
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118 | (1) |
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119 | (3) |
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120 | (1) |
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120 | (1) |
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Usability and Consistency |
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120 | (1) |
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121 | (1) |
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Consistency of Color and Visual Representation |
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121 | (1) |
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Recognition Versus Recall |
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121 | (1) |
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122 | (4) |
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122 | (1) |
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123 | (1) |
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124 | (1) |
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125 | (1) |
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126 | (1) |
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126 | (1) |
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126 | (1) |
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127 | (1) |
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Putting Data in the Path of Each Persona |
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127 | (2) |
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Data in the Path of Finance |
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128 | (1) |
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Data in the Path of Leadership |
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128 | (1) |
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Data in the Path of Engineers |
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128 | (1) |
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Connecting FinOps to the Rest of the Business |
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129 | (1) |
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129 | (2) |
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131 | (4) |
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135 | (12) |
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The Six Principles of FinOps |
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135 | (3) |
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#1 Teams Need to Collaborate |
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136 | (1) |
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#2 Decisions Are Driven by the Business Value of Cloud |
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136 | (1) |
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#3 Everyone Takes Ownership of Their Cloud Usage |
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136 | (1) |
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#4 FinOps Reports Should Be Accessible and Timely |
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136 | (1) |
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#5 A Centralized Team Drives FinOps |
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137 | (1) |
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#6 Take Advantage of the Variable Cost Model of the Cloud |
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137 | (1) |
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138 | (6) |
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139 | (2) |
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141 | (1) |
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142 | (2) |
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144 | (1) |
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145 | (1) |
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You Don't Have to Find All the Answers |
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145 | (1) |
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146 | (1) |
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10 Inform Phase: Where Are You Right Now? |
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147 | (8) |
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Data Is Meaningless Without Context |
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147 | (1) |
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148 | (2) |
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Organizational Work During This Phase |
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150 | (1) |
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Transparency and the Feedback Loop |
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150 | (2) |
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Benchmarking Team Performance |
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152 | (1) |
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153 | (1) |
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154 | (1) |
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11 Allocation: No Dollar Left Behind |
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155 | (14) |
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155 | (1) |
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Amortization: It's Accrual World |
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156 | (2) |
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Creating Goodwill and Auditability with Accounting |
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158 | (1) |
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The "Spend Panic" Tipping Point |
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159 | (1) |
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Spreading Out Shared Costs |
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160 | (2) |
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Chargeback Versus Showback |
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162 | (1) |
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A Combination of Models Fit for Purpose |
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163 | (1) |
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Accounts, Tagging, Account Organization Hierarchies |
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164 | (1) |
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The Showback Model in Action |
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165 | (1) |
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Chargeback and Showback Considerations |
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166 | (1) |
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166 | (3) |
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12 Tags, Labels, and Accounts, Oh My! |
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169 | (16) |
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Tag- and Hierarchy-Based Approaches |
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170 | (2) |
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Getting Started with Your Strategy |
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172 | (1) |
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172 | (1) |
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172 | (1) |
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173 | (1) |
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Comparing the Allocation Options of the Big Three |
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173 | (1) |
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Comparing Accounts and Folders Versus Tags and Labels |
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174 | (1) |
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Organizing Accounts and Projects into Groups |
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175 | (1) |
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Tags and Labels: The Most Flexible Allocation Option |
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176 | (7) |
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177 | (1) |
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Getting Started Early with Tagging |
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178 | (1) |
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Deciding When to Set Your Tagging Standard |
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178 | (1) |
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Picking the Right Number of Tags |
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179 | (1) |
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Working Within Tag/Label Restrictions |
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180 | (1) |
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181 | (1) |
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Reporting on Tag Performance |
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182 | (1) |
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Getting Teams to Implement Tags |
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182 | (1) |
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183 | (2) |
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185 | (20) |
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The State of Cloud Forecasting |
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186 | (1) |
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Forecasting Methodologies |
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187 | (2) |
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189 | (1) |
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Cloud Forecasting Challenges |
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189 | (9) |
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Manual Versus Automated Forecasts |
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190 | (1) |
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190 | (1) |
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190 | (2) |
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192 | (1) |
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193 | (1) |
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194 | (1) |
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195 | (1) |
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Impacts of Cost Optimization on Forecasts |
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196 | (2) |
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198 | (1) |
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The Importance of Managing Teams to Budgets |
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199 | (3) |
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202 | (3) |
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14 Optimize Phase: Adjusting to Hit Goals |
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205 | (12) |
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205 | (1) |
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The First Goal Is Good Cost Allocation |
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206 | (1) |
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206 | (1) |
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The Iron Triangle: Good, Fast, Cheap |
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207 | (1) |
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208 | (3) |
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OKR Focus Area # 1: Credibility |
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209 | (1) |
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OKR Focus Area #2: Maintainable |
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209 | (1) |
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OKR Focus Area #3: Control |
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209 | (2) |
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211 | (2) |
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213 | (1) |
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Using Less Versus Paying Less |
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214 | (1) |
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215 | (2) |
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15 Using Less: Usage Optimization |
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217 | (26) |
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The Cold Reality of Cloud Consumption |
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217 | (2) |
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Where Does Waste Come From? |
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219 | (1) |
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Usage Reduction by Removing/Moving |
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220 | (1) |
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Usage Reduction by Resizing (Rightsizing) |
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221 | (2) |
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Common Rightsizing Mistakes |
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223 | (3) |
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Relying on Recommendations That Use Only Averages or Peaks |
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223 | (2) |
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Failing to Rightsize Beyond Compute |
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225 | (1) |
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Not Addressing Your Resource "Shape" |
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225 | (1) |
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Not Simulating Performance Before Rightsizing |
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225 | (1) |
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Hesitating Due to Reserved Instance Uncertainly |
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226 | (1) |
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Going Beyond Compute: Tips to Control Cloud Costs |
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226 | (3) |
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226 | (2) |
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228 | (1) |
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229 | (1) |
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Usage Reduction by Redesigning |
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229 | (1) |
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229 | (1) |
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230 | (1) |
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Effects on Reserved Instances |
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230 | (1) |
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231 | (1) |
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232 | (1) |
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233 | (2) |
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Maturing Usage Optimization |
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235 | (1) |
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Advanced Workflow: Automated Opt-Out Rightsizing |
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236 | (3) |
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239 | (2) |
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241 | (2) |
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16 Paying Less: Rate Optimization |
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243 | (8) |
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243 | (2) |
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244 | (1) |
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244 | (1) |
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Commitment-Based Discounts |
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245 | (1) |
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245 | (1) |
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246 | (2) |
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246 | (1) |
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247 | (1) |
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248 | (1) |
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248 | (1) |
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249 | (1) |
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249 | (1) |
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250 | (1) |
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17 Understanding Commitment-Based Discounts |
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251 | (30) |
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Introduction to Commitment-Based Discounts |
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251 | (2) |
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Commitment-Based Discount Basics |
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253 | (5) |
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Compute Instance Size Flexibility |
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255 | (2) |
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Conversions and Cancellations |
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257 | (1) |
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Overview of Usage Commitments Offered by the Big Three |
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258 | (1) |
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258 | (11) |
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259 | (1) |
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260 | (1) |
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260 | (1) |
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261 | (2) |
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Standard Versus Convertible RIs |
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263 | (1) |
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Instance Size Flexibility |
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264 | (3) |
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267 | (1) |
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268 | (1) |
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269 | (5) |
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269 | (2) |
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Instance Size Flexibility |
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271 | (1) |
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272 | (2) |
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274 | (4) |
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Google Committed Use Discounts |
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274 | (1) |
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Paying for Cores, Not Hours, in Google |
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275 | (1) |
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Google Billing and Sharing CUDs |
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275 | (1) |
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Google Billing Account and Ownership |
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276 | (1) |
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Applying Google CUDs in a Project |
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277 | (1) |
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Google Flexible Committed Use Discounts |
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277 | (1) |
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278 | (3) |
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18 Building a Commitment-Based Discount Strategy |
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281 | (22) |
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282 | (1) |
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Steps to Building a Commitment-Based Discount Strategy |
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282 | (11) |
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Step 1 Learn the Fundamentals of Each Program |
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282 | (4) |
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Step 2 Understand Your Level of Commitment to Your Cloud Service Provider |
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286 | (1) |
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Step 3 Build a Repeatable Commitment-Based Discount Process |
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286 | (3) |
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Step 4 Purchase Regularly and Often |
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289 | (1) |
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Step 5 Measure and Iterate |
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290 | (1) |
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Step 6 Allocate Up-Front Commitment Costs Appropriately |
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291 | (2) |
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How to Manage the Commitment Strategy |
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293 | (1) |
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Purchasing Commitments Just-in-Time |
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293 | (2) |
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When to Rightsize Versus Commit |
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295 | (7) |
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296 | (2) |
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Who Pays for Commitments? |
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298 | (2) |
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300 | (2) |
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302 | (1) |
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19 Sustainability: FinOps Partnering with GreenOps |
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303 | (16) |
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What Are Cloud Carbon Emissions? |
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305 | (1) |
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Scope 1, 2, and 3 Emissions |
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306 | (1) |
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Are Cloud Providers Green? |
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307 | (2) |
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308 | (1) |
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308 | (1) |
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309 | (1) |
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Partnering with Engineers on Sustainability |
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309 | (1) |
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FinOps and GreenOps Better Together? |
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310 | (2) |
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312 | (1) |
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Avoid FinOps Working Against GreenOps |
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313 | (1) |
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314 | (5) |
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20 Operate: Aligning Teams to Business Goals |
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319 | (10) |
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319 | (1) |
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Staffing and Augmenting Your FinOps Team |
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320 | (1) |
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320 | (4) |
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321 | (1) |
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322 | (1) |
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322 | (1) |
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323 | (1) |
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How Do Responsibilities Help Culture? |
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324 | (2) |
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Carrot Versus Stick Approach |
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324 | (1) |
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325 | (1) |
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Putting Operate into Action |
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326 | (1) |
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326 | (3) |
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21 Automating Cost Management |
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329 | (12) |
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What Is the Outcome You Want to Achieve? |
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330 | (1) |
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Automated Versus Manual Tasks |
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330 | (2) |
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332 | (3) |
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332 | (1) |
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333 | (1) |
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Tooling Deployment Options |
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333 | (2) |
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Automation Working Together |
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335 | (1) |
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335 | (1) |
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335 | (1) |
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336 | (1) |
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337 | (1) |
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338 | (1) |
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338 | (1) |
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Scheduled Resource Start/Stop |
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338 | (1) |
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338 | (1) |
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339 | (2) |
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22 Metric-Driven Cost Optimization |
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341 | (12) |
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341 | (6) |
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342 | (1) |
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342 | (1) |
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342 | (4) |
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346 | (1) |
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Metric-Driven Versus Cadence-Driven Processes |
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347 | (2) |
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349 | (1) |
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349 | (1) |
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350 | (2) |
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352 | (1) |
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23 FinOps for the Container World |
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353 | (16) |
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354 | (1) |
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The Move to Container Orchestration |
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355 | (1) |
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The Container FinOps Lifecycle |
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356 | (1) |
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357 | (5) |
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357 | (1) |
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357 | (4) |
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Tags, Labels, and Namespaces |
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361 | (1) |
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362 | (3) |
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362 | (1) |
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Container Usage Optimization |
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362 | (3) |
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Server Instance Rate Optimization |
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365 | (1) |
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365 | (1) |
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366 | (1) |
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366 | (3) |
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24 Partnering with Engineers to Enable FinOps |
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369 | (14) |
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369 | (1) |
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What's on the Mind of the Engineer? |
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370 | (2) |
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Constraints and the Solving of Hard Problems |
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372 | (1) |
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Principles for Enabling Cost-Efficient Engineering |
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373 | (6) |
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#1 Maximize Value Rather Than Reduce Cost |
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374 | (1) |
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#2 Remember That We Are on the Same Team |
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375 | (1) |
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#3 Prioritize Improving Communication |
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375 | (1) |
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#4 Introduce Financial Constraints Early in the Product Development |
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376 | (1) |
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#5 Enablement, Not Control |
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377 | (1) |
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#6 Leadership Support Isn't Helpful, It Is Essential |
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377 | (2) |
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Data in the Path of the Engineer |
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379 | (1) |
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Models for Partnering with Engineering Teams |
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380 | (1) |
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380 | (1) |
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380 | (1) |
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Indirect Collaboration with Targeted Contribution |
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380 | (1) |
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381 | (2) |
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25 Connectivity to Other Frameworks |
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383 | (8) |
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385 | (1) |
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Working with Other Methodologies and Frameworks |
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385 | (4) |
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386 | (1) |
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Make Friends and Share Goals |
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387 | (1) |
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Share Influence, Terminology, and Processes |
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388 | (1) |
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389 | (1) |
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389 | (1) |
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389 | (2) |
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26 FinOps Nirvana: Data-Driven Decision Making |
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391 | (14) |
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Unit Economics and Metrics |
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392 | (1) |
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Unit Economics Don't Have to Be About Revenue |
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393 | (1) |
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Calculating Unit Economic Metrics |
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394 | (1) |
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Spending Is Fine, Wasting Is Not |
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394 | (3) |
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397 | (2) |
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Coming Back to the Iron Triangle |
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399 | (1) |
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What's Missing from the Equation? |
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400 | (1) |
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When Have You Won at FinOps? |
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401 | (2) |
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403 | (2) |
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27 You Are the Secret Ingredient |
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405 | (4) |
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406 | (3) |
| Afterword on What to Prioritize (from J.R.) |
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409 | (2) |
| Index |
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411 | |
Lisainfo e-raamatute kohta