Google Cloud Platform (GCP) is a suite of cloud computing services offered by Google that play a crucial role in the FinOps landscape. Launched in 2008, GCP has rapidly evolved to become a major player in the cloud computing industry. It provides various services that enable organizations to build, deploy, and scale applications, store and…
What is Cloud FinOps? FinOps: A History and Introduction Amazon Web Services launched in 2006; however, there was no way for users to see a detailed view of which services they were using and how much they were spending. As bills started to grow in terms of money spent and complexity, in 2011 the first…
Enterprise Discount Programs (EDPs) are strategic pricing arrangements cloud service providers offer to large-scale customers, designed to reduce costs and optimize cloud spending. These programs are important in cloud cost management, particularly within the FinOps framework. EDPs have evolved alongside the rapid growth of cloud computing, becoming an essential tool for organizations seeking to maximize…
Enterprise Agreements are strategic contracts between large organizations and cloud service providers that offer tailored pricing, committed usage levels, and customized terms for cloud resources. In the context of FinOps, these agreements play an important role in optimizing cloud costs, enhancing financial predictability, and aligning IT spending with business objectives. Enterprise Agreements typically cover a…
Cost and Usage Reports are detailed records of cloud resource consumption and associated costs provided by cloud service providers. These reports are a cornerstone for FinOps practices and cloud cost management strategies. CUR offers granular insights into how organizations utilize cloud resources, enabling precise tracking of expenses and usage patterns. Introduced by major cloud providers…
A Commitment Usage Discount (CUD) is a pricing model offered by cloud service providers that allows customers to receive discounted rates in exchange for committing to a specific level of resource usage over a predetermined period. This cost-saving strategy is important in cloud cost management and essential to FinOps practices. CUDs enable organizations to optimize…
A Cloud Service Provider (CSP) is a company that offers cloud computing services, including infrastructure, platforms, and software, delivered over the Internet. CSPs play a crucial role in modern IT infrastructure by providing scalable, on-demand resources that organizations can leverage without investing in physical hardware. In FinOps, CSPs are central to cost management and optimization…
Cloud computing is a technology model that enables on-demand access to a shared pool of configurable computing resources over the internet. These resources include networks, servers, storage, applications, and services, which can be rapidly provisioned and released with minimal management effort or service provider interaction. In the context of FinOps, cloud computing plays a crucial…
A Cloud Center of Excellence (CCoE) is an organization’s centralized team or function that establishes and maintains cloud governance, best practices, and standards. In FinOps, a CCoE is instrumental in establishing and enforcing cost management policies, providing visibility into cloud spending, and driving continuous optimization efforts. By centralizing cloud expertise and governance, a CCoE enables…
Continuous Integration and Continuous Delivery/Deployment (CI/CD) is a set of software development practices that automate the process of building, testing, and deploying code changes. In the context of FinOps, CI/CD plays a crucial role in optimizing software delivery while effectively managing cloud costs. This integration of development practices with financial oversight ensures that organizations can…
Chargeback, in the context of FinOps, refers to the process of attributing cloud infrastructure costs to the specific business units, departments, or projects that incur them. This practice is fundamental to cloud cost management as it provides transparency and accountability for cloud usage across an organization. The significance of chargeback in cloud cost management cannot…
Amazon Web Services (AWS) plays a crucial role in the cloud computing landscape, offering organizations the ability to replace upfront capital infrastructure expenses with low variable costs that scale with their business. Its global reach and extensive service portfolio make it a key player in digital transformation strategies for companies of all sizes. In the…