Ten years ago, DevOps broke down the silos between Engineering and Ops and accelerated the pace of innovation. Today, a similar pattern is emerging where effective cloud infrastructure adoption and usage requires a deep collaboration between technical teams (DevOps) and their new partners in finance and business. Attendees will learn from cloud innovators how to scale their cloud adoption by collaborating across operations, development and finance to continuously optimise cloud spend, using an emerging practice known as FinOps.

1. S U M M I T
SYDNEY

2. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T
FinOps: A Culture Transformation to Bring DevOps,
Finance and the Business Together
J.R. Storment
President, FinOps Foundation
Co-Founder, Cloudability
Mike Fuller
Principal Systems Engineer,
Atlassian

3. Welcome to the Cloud Economy

4. The Rise of the
Cloud Economy
Cloud spending has
reached a tipping point
Fixed Cost
CapEx Weighted Spend
Datacenter Centric IT Born in the Web
Companies
2000’sPre- 2000’s
EC2 Launched, Rise of
Agile, Lean, & Devops
2006
Variable Cost
OpEx Weighted Spend
Cloud Centric IT
Now
Public Cloud Spend
$360B
by 2022

5. 451RESEARCH.COM
©2018 451 Research. All Rights Reserved.
• More than half (57%) worry daily about cloud cost management.
• 69% regularly overspend their budget by at least 25%.
• Only 35% of line of business owners are shown their cloud
spend (showback/chargeback).
• Poor cloud financial management hurts the business
• 25% say innovation has suffered
• 53% have stalled or halted their cloud migrations
New Research Finds Enterprises Uneducated and
Unprepared to Manage Multi-Million Dollar Cloud Budgets

6. Engineers who can now spend company money at will
DevOps + Cloud
has broken traditional procurement

7. A New Reality for Enterprise IT has Arrived
https://www.zdnet.com/article/cloud-customers-pairing-aws-microsoft-azure-more-according-to-kentik/
Decentralised
Buying
Material Cloud
Spend
Fixed -> Variable Macroeconomic
Instability
New Operating
Model is Required

8. Bringing financial accountability to the variable spend model of cloud,
enabling distributed IT, finance, and business teams to tune
for speed, cost, or quality.
FinOps
The Operating Model for the Cloud

9. FinOps Operating Model Fundamentals
IT, Finance, &
LoB
Collaboration
Performance
Benchmarking
Real-Time
Decision
Making
Understand
Fully Loaded
Costs
Predict, Plan, &
Purchase
Capacity

10. Defining the cross-functional team
and competencies needed
Cultural Shift

11. The Language of FinOps

12. Spend = usage x rate
Anatomy of the Cloud Bill

13. Empower feature and product teams to manage
their own usage of cloud against their budget
With FinOps, Accountability is Pushed to the Edge

14. Centrally govern & control Committed Use Discounts, Reserved
Instances and Volume/Custom Discounts with Cloud Providers
Rate and Discount Optimisation is Centralised
FinOps
Team

15. Inform
Visibility &
Allocation
Optimise
Utilisation
& Rates
Operate
Continuous
improvement &
operations
Culture &
Governance
The FinOps Lifecycle

16. Inform: the Prius Effect

17. FinOps Practice brings 10-40% Efficiency Gains
Actual results from new
customer during week 3
of their onboarding

18. Optimise
Taking the right actions depending on your goals

20. Operate
Continuous improvement and decision making

22. Metrics-Driven Cost Optimisation
RI Coverage Rate RI Savings RI Utilisation
Unrealised Savings Total Reserved Units

23. Crawl, Walk, Run
Crawl Walk Run
Visibility &
allocation of
cloud spend
Reliant on vendor invoices
and manual reconciliation
> 1 Day for partial visibility
Limited retention of granular
historical data
< 1 Hour or near real-time
visibility of all spend
All current & historical data
retained
Showback or
Chargeback
Inability to provide teams an
accurate accounting of cloud
spend
Cloud spend is allocated to teams
based on estimated usage of
resources
Teams understand their portion
of cloud spend based on actual
consumption
Team budgets Teams have no budgets Teams have budgets
Teams budget and track spend
against budgets
Committed
Savings
0-20% of cloud services
purchased via reserved
instances
40-50% of cloud services
purchased via reserved instances
80-100% of cloud services
purchased via reserved instances
Find and
remove
underutilised
services
Every few months Weekly Automated & policy driven

26. Published in late 2019 by O’Reilly Media
Cloud Financial Management
Building a culture of FinOps

27. The Cloudability Platform for FinOps
AWS

28. Cloudability FinOps Success Services
FinOps Advisory
Services
Visibility
FinOps Practice
Management
We will do it for you.
Leverage our experience to
build and deliver your
FinOps practice.
FinOps Service
Packs
Cloud Private Pricing
Business Review
Training & Working
Sessions
Visibility & Allocation
Tagging Strategy
Budgets & Forecasting

29. FinOps Nirvana: drive better unit economics

30. For more information, visit us at our booth
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