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…
Understanding Amortized Costs in FinOps In financial and cloud management scenarios, the term ‘amortized costs’ plays a pivotal role. While traditionally used in finance to describe how loans or other assets diminish over time, in the cloud sphere, it’s about understanding costs spread over a usage period. Amortization in Traditional Finance Amortization typically refers to…
AWS CDK (Cloud Development Kit) was introduced by Amazon Web Services in 2019 as a modern approach to Infrastructure as Code (IaC). It aims to simplify the process of defining and deploying cloud resources by allowing developers to use high-level programming languages instead of writing JSON or YAML templates. The primary purpose of AWS CDK…
Azure DevOps is a comprehensive set of development tools and services provided by Microsoft to facilitate the entire software development lifecycle. It offers a suite of integrated features that support modern DevOps practices and FinOps principles, enabling organizations to streamline their development processes, improve collaboration, and optimize cloud costs. It evolved from Microsoft’s Team Foundation…
Capacity planning in FinOps is the process of determining and optimizing the resources needed to meet current and future demand for cloud services while maintaining cost efficiency. This strategic approach is crucial for organizations seeking to balance performance requirements with financial goals in their cloud environments. Key Components of Capacity Planning Successful capacity planning in…
Chargeback in FinOps In the world of FinOps, the practice of chargeback stands as a cornerstone for transparent and accountable cloud cost management. As organizations strive for cost visibility and accurate allocation, understanding chargeback becomes paramount. What is Chargeback? In FinOps, chargeback refers to the practice of attributing cloud costs back to the specific departments,…
CI/CD in the Context of FinOps Continuous Integration and Continuous Deployment/Delivery, collectively known as CI/CD, form the backbone of modern software development practices. As developers aim for rapid iterations and releases, CI/CD pipelines become essential. When looking at FinOps, understanding how these pipelines influence and drive cloud costs is crucial. Basics of CI/CD At its…
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…
Cloud Financial Management plays a crucial role in modern business operations, especially as organizations increasingly rely on cloud services for their IT infrastructure. As a core component of FinOps, it helps businesses navigate the complexities of cloud pricing models, optimize resource utilization, and maintain financial control in dynamic cloud environments. The importance of Cloud Financial…
Origins of CSPs As the internet evolved and businesses sought more efficient ways to manage IT resources, the concept of ‘cloud computing’ emerged. With the growing demand for scalable, flexible, and cost-effective IT solutions, companies began offering specialized services, leading to the birth of Cloud Service Providers. Types of Services Offered by CSPs CSPs typically…
Origins of CUD As cloud computing grew in popularity and competition among CSPs intensified, providers sought ways to enhance customer loyalty and predictability in their revenue streams. Commitment Usage Discounts emerged as a strategy for Google Cloud to incentivize users to commit to longer-term usage, benefiting both the user, through cost savings, and the provider,…
Origins of CUR As cloud adoption grew, organizations faced the challenge of managing and understanding their cloud expenses. With multiple services, regions, and potentially multiple accounts involved, there was a need for a granular and comprehensive report. Recognizing this, Cloud Service Providers introduced Cost and Usage Reports to help customers navigate and analyze their cloud…