The Fin-tastic Way to Boost Your Cloud ROI: An Introduction to FinOps on Azure

Are you tired of overspending on cloud costs? Want to optimize your Azure spending and boost your ROI? Look no further than FinOps! In this session, we'll dive into the basics of FinOps and why it's becoming increasingly important for organizations of all sizes. We'll also explore the specific tools and features available on the Azure platform that can help you implement FinOps successfully, including cost management, budgeting, and optimization tools.

Whether you're new to FinOps or have experience in the field, this session will provide valuable insights and practical tips for maximizing your cloud savings. So join me in this session and learn how to become a FinOps pro on Azure!

Transcript

1. The Fin-tastic Way to Boost Your Cloud ROI AN INTRODUCTION TO FINOPS ON AZURE RENÉ VAN OSNABRUGGE @RENEVO
3. Cloud & DevOps go hand in hand
4. The same model that brought freedom REMOVED CONTROL
6. This is about you!
7. WHY NOW?
8. The Cloud Promise Survey: Cost, scalability are primary drivers for cloud usage | ZDNET
9. 49% actively move data to the cloud. 70% of organizations has over 50% of their infrastructure in the cloud. And cloud is here to stay… 9 Source: 2023 State of Cloud | Pluralsight
10. Cloud budgets rise 10 Source: 2023 State of Cloud | Pluralsight 71% of leaders saying their cloud budgets will increase over the next 12 months 74% of leaders also expect their cloud skill development budgets to increase
11. But cloud does not reach its full potential 11 Source: 2023 State of Cloud | Pluralsight 80% struggle to improve performance and measurement of cloud systems. 61% of organizations able to push out new code to consumers more than once per month 27% of leaders succeed in driving consumer value with their cloud solutions
12. BEFORE & AFT ER
13. WHAT WE HEAR SAVE COST OPTIMIZE COST EXPENSIVE POLICIES PREDICT COST CLOUD SPEND INVISIBLE CLOUD FEAR DAT A CENT ERS SAVE COST OPTIMIZE COST EXPENSIVE POLICIES PREDICT COST CLOUD SPEND INVISIBLE CLOUD FEAR DAT A CENT ERS SAVE COST OPTIMIZE COST EXPENSIVE POLICIES PREDICT COST CLOUD SPEND INVISIBLE CLOUD FEAR DAT A CENT ERS SAVE COST OPTIMIZE COST EXPENSIVE POLICIES PREDICT COST CLOUD SPEND INVISIBLE CLOUD FEAR DAT A CENT ERS SAVE COST OPTIMIZE COST EXPENSIVE POLICIES PREDICT COST CLOUD SPEND INVISIBLE CLOUD FEAR DAT A CENT ERSSAVE COST OPTIMIZE COST EXPENSIVE POLICIES PREDICT COST CLOUD SPEND INVISIBLE CLOUD FEAR DAT A CENT ERS SAVE COST OPTIMIZE COST EXPENSIVE POLICIES PREDICT COST CLOUD SPEND INVISIBLE CLOUD FEAR DAT A CENT ERS SAVE COST
16. …
17. , ,
18. VISIBILITY COST ARCHIT ECTING OWNERSHIP
19. visibility
20. Cloud is too expensive! 20
21. And now? 21
22. And now? 22
23. #PERSPECTIVE
24. WHAT IS CLOUD COST?
26. Spend = Usage x Rate
28. Usage 28 • Compute power • Storage space • Disks • Network inbound/outbound • IP Addresses • Security features • AI functionality • Number of instances • Redundancy • Etc.
30. Example of Storage Account SKU 30 1 Petabyte storage / month in West Europe $1.013 $3.686 $15.360 $20.070 $25.088 $44.185 $204.800 Standard - Archive - LRS Standard - Cold - LRS Standard - Cool - LRS Standard - Hot -LRS Standard - Hot - ZRS Standard - Hot - GRS Premium - ZRS
31. Rates The amount of money charged or paid for a particular service, product, or activity Different rates for many different services Compute, Network, I/O, Scaling, Instances, SKU, Availability Rates vary depending on usage 31
32. Price is what you pay. Value is what you get. Warren Buffet
33. • You build it, you run it
34. Rate Reduction Pay-as-you-go (on-demand) Spot Instances Reserved Instances Saving Plans Commitment-Based Discounts Enterprise Agreement Dev/Test subscriptions Hybrid Benefits 34
36. Pay as you go Reserved Instance Saving Plan
37. Example VM rates 37 1 VM in West Europe - D4 v5 - 730 Hours – Standard Windows, per Month $58 $155 $155 $209 $215 $242 $253 $279 3 year RI with Hybrid Benefits PAYG with Hybrid Benefits DevTest 3 year saving plan 1 year Reserved Instance 1 year saving plan East US location Pay As You Go
38. Cost Avoidance Which resources show a stable usage? Removing / Moving Data Retention Policies Delete Resources Rightsizing Smart Combining Shared Services Prod or Non-Prod? Selective Use / Scaling Re-Architecting SKU 38
40. Development teams need to save cost! 40
41. Is that true? 41
42. $ T F1
43. We need budgets.. ..and ownership
44. OWNERSHIP!
45. Ownership 45 Who owns the cost? * per product * per department * per unit Who owns Shared costs? How to showback or chargeback
47. Orgs need to focus on creating value with cloud tech instead of just consuming it Source: 2023 State of Cloud | Pluralsight
48. Budgets are real 48 Innovation Budget
50. Different perspectives, different needs 53 Engineering/Operations Business/Product Owner Finance/Procurement Executives Efficient use of resources they need Accurately forecast and predict spending Prove value of investment Seek comptetive advantage
51. And now what
52. rATE uSAGE uSAGE uSAGE A centralized team enables FinOps Everyone takes ownership for their cloud usage Teams need to collaborate Reports should be accessible and timely Decisions are driven by business value of cloud Take advantage of the variable cost model of the cloud
53. rATE uSAGE uSAGE uSAGE IT SAYS NOTHING ABOUT SAVING COST!
54. SHIFT LEFT
55. Requirements Build Run Cost in the DoD Pricing Calculator Cost architecting Direct feedback loops Monitoring & InSIghts Alerts