Savings Plans represent a significant evolution in cloud cost optimization strategies. Introduced by Amazon Web Services in 2019, these plans offer a more flexible alternative to the traditional Reserved Instances model. They allow organizations to commit to a consistent amount of compute usage (measured in dollars per hour) in exchange for lower prices than On-Demand…
Serverless pricing refers to the cost model associated with serverless computing, where users are charged based on the actual resources consumed by their applications rather than pre-allocated infrastructure. This pay-per-use approach allows organizations to optimize costs and scale their applications efficiently. Major serverless providers, including Amazon Web Services (AWS) Lambda, Microsoft Azure Functions, and Google…
Shadow IT refers to the use of information technology systems, devices, software, applications, and services without explicit IT department approval. In FinOps, Shadow IT encompasses unauthorized cloud services and resources that employees or departments utilize outside of official IT channels, potentially impacting cloud cost management and organizational efficiency. The Rise of Shadow IT in Cloud…
The Shared Responsibility Model is a framework in cloud computing that delineates the security and operational responsibilities between cloud service providers and their customers. This model is crucial for effective cloud cost management and FinOps practices, ensuring clear accountability and efficient resource utilization. In the context of cloud computing, the Shared Responsibility Model outlines which…
Shift Left is a strategic approach in FinOps that emphasizes the early integration of cost management practices into the cloud development lifecycle. This concept, originating from the software development and testing field, has been adapted to address the growing need for proactive cloud cost optimization. In FinOps, Shift Left involves moving financial considerations and cost…
Showback in FinOps is a cost allocation method that provides visibility into cloud resource usage and associated costs without directly charging internal teams or departments. The importance of showback in cloud cost management cannot be overstated. As organizations increasingly rely on cloud services, understanding and optimizing costs becomes crucial. Showback provides the necessary insights to…
Spacelift is an infrastructure management platform that plays an important role in FinOps and cloud cost optimization. It enables organizations to effectively manage their infrastructure as code (IaC) while providing essential tools for cost control, policy enforcement, and collaboration between finance and engineering teams. In the context of DevOps and FinOps practices, Spacelift offers a…
Spot Instances are a cost-effective cloud computing resource offering that allows users to leverage unused capacity in cloud provider data centers at significantly reduced prices. These instances provide substantial savings compared to traditional On-Demand instances, making them an essential tool for organizations looking to optimize their cloud spending and implement effective FinOps strategies. The concept…
Spotify Backstage is an open-source developer platform that helps organizations streamline software development, improve efficiency, and manage cloud infrastructure costs. Created by Spotify in 2020, this tool has gained significant traction in the tech industry, particularly in FinOps, for its ability to enhance visibility and control over cloud resources. The platform serves as a single…
A tagging policy in FinOps refers to a structured approach for assigning metadata to cloud resources. This metadata, in the form of tags, helps organizations track, manage, and optimize their cloud spending. Tags are key-value pairs that provide additional information about resources, such as their purpose, owner, or cost center. It enables organizations to: A…
A tagging strategy in FinOps is a systematic approach to labeling cloud resources with metadata to improve cost allocation, resource management, and overall financial governance. This practice is crucial for organizations seeking to optimize cloud spending and enhance operational efficiency. They enable organizations to: Tagging supports the core principles of visibility, accountability, and optimization as…
Terraform is an open-source Infrastructure as Code (IaC) tool that allows users to define, provision, and manage cloud infrastructure resources using a declarative language. Developed by HashiCorp, Terraform has become a crucial component in modern cloud infrastructure management, enabling organizations to automate and streamline their infrastructure deployments across multiple cloud providers. Core Concepts and Functionality…