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Opis ebooka: Cloud FinOps. 2nd Edition
FinOps brings financial accountability to the variable spend model of cloud. Used by the majority of global enterprises, this management practice has grown from a fringe activity to the de facto discipline managing cloud spend. In this book, authors J.R. Storment and Mike Fuller outline the process of building a culture of cloud FinOps by drawing on real-world successes and failures of large-scale cloud spenders.
Engineering and finance teams, executives, and FinOps practitioners alike will learn how to build an efficient and effective FinOps machine for data-driven cloud value decision-making. Complete with a road map to get you started, this revised second edition includes new chapters that cover forecasting, sustainability, and connectivity to other frameworks.
You'll learn:
- The DNA of a highly functional cloud FinOps culture
- A road map to build executive support for FinOps adoption
- How to understand and forecast your cloud spending
- How to empower engineering and finance to work together
- Cost allocation strategies to create accountability for cloud and container spend
- Strategies for rate discounts from cloud commitments
- When and how to implement automation of repetitive cost tasks
- How to empower engineering team action on cost efficiency
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Szczegóły ebooka
- ISBN Ebooka:
- 978-14-920-9836-2, 9781492098362
- Data wydania ebooka:
- 2023-01-19 Data wydania ebooka często jest dniem wprowadzenia tytułu do sprzedaży i może nie być równoznaczna z datą wydania książki papierowej. Dodatkowe informacje możesz znaleźć w darmowym fragmencie. Jeśli masz wątpliwości skontaktuj się z nami sklep@ebookpoint.pl.
- Język publikacji:
- angielski
- Rozmiar pliku ePub:
- 8.9MB
- Rozmiar pliku Mobi:
- 22.7MB
Spis treści ebooka
- Preface
- The World Turned Upside Down
- Who Should Read This Book
- About This Book
- What You Need to Know Before Reading On
- FinOps Is Evolving
- Conventions Used in This Book
- OReilly Online Learning
- How to Contact Us
- Acknowledgments
- I. Introducing FinOps
- 1. What Is FinOps?
- Defining the Term FinOps
- The FinOps Heros Journey
- Where Did FinOps Come From?
- Data-Driven Decision Making
- Real-Time Feedback (aka the Prius Effect)
- Core Principles of FinOps
- When Should You Start FinOps?
- Starting with the End in Mind: Data-Driven Decision Making
- Conclusion
- 2. Why FinOps?
- Use Cloud for the Right Reasons
- Cloud Spend Keeps Accelerating
- The Impact of Not Adopting FinOps
- Informed Ignoring: Why Start Now?
- Conclusion
- 3. Cultural Shift and the FinOps Team
- Deming on Business Transformation
- Who Does FinOps?
- Why a Centralized Team?
- The FinOps Team Doesnt Do FinOps
- The Role of Each Team in FinOps
- Executives and Leadership
- Engineering and Developers
- Finance
- Procurement and Sourcing
- Product or Business Teams
- FinOps Practitioners
- A New Way of Working Together
- Where Does Your FinOps Team Report?
- Understanding Motivations
- Engineers
- Finance People
- Executives and Leadership
- Procurement and Sourcing People
- FinOps Throughout Your Organization
- Hiring for FinOps
- FinOps Culture in Action
- Difficulty Motivating People Is Not New
- Contributors to Action
- Detractors from Action
- Tipping the Scales in Your Favor
- Conclusion
- 4. The Language of FinOps
- Defining a Common Lexicon
- Defining the Basic Terms
- Defining Finance Terms for Cloud Professionals
- Abstraction Assists Understanding
- Cloud Language Versus Business Language
- Creating a Universal Translator Between Your DevOps and Finance Teams
- The Need to Educate All the Disciplines
- Benchmarking and Gamification
- Conclusion
- 5. Anatomy of the Cloud Bill
- Types of Cloud Bill
- Cloud Billing Complexity
- Basic Format of Billing Data
- Time, Why Do You Punish Me?
- Sum of the Tiny Parts
- A Brief History of Cloud Billing Data
- The Importance of Hourly Data
- A Month Is Not a Month
- A Dollar Is Not a Dollar
- Two Levers to Affect Your Bill
- Who Should Avoid Costs and Who Should Reduce Rates?
- Centralizing Rate Reduction
- Why You Should Decentralize Usage Reduction
- Conclusion
- 6. Adopting FinOps
- A Confession
- Different Executive Pitches for Different Levels
- Starting Pitch
- Advancing Pitch
- Sample Headcount Plan for Advancing a FinOps Team
- Pitching the Executive Sponsor
- Playing to Your Audience
- Key Personas That the Driver Must Influence
- CEO Persona
- CTO/CIO Persona
- CFO Persona
- Engineering Lead Persona
- Roadmap for Getting Adoption of FinOps
- Stage 1: Planning for FinOps in an Organization
- Do your research
- Create a plan
- Gather support
- Perform initial resourcing
- Stage 1: Planning for FinOps in an Organization
- Stage 2: Socializing FinOps for Adoption in an Organization
- Communicate value
- Gather team feedback
- Define initial FinOps model
- Stage 3: Preparing the Organization for FinOps
- Assess FinOps readiness
- Engage stakeholders
- Type of Alignment to the Organization
- Full Time, Part Time, Borrowed Time: A Note on Resources
- A Complex System Designed from Scratch Never Works
- Conclusion
- 7. The FinOps Foundation Framework
- An Operating Model for Your Practice
- The Framework Model
- Principles
- Personas
- Maturity
- Phases
- Domains and Capabilities
- Structure of a Domain
- Structure of Capabilities
- Definition
- Maturity assessment
- Assessment lenses
- Functional activities
- Measures of success
- Inputs
- Adapting the Framework to Fit Your Needs
- Connection to Other Frameworks/Models
- Conclusion
- 8. The UI of FinOps
- Build Versus Buy Versus Native
- When to Use Native Tooling
- When to Build
- Why to Buy
- Build Versus Buy Versus Native
- Operationalized Reporting
- Data Quality
- Perfect Is the Enemy of Good
- Report Tiering
- Rolling Out Changes
- The Universal Report
- Accessibility
- Color
- Visual Hierarchy
- Usability and Consistency
- Language
- Consistency of Color and Visual Representation
- Recognition Versus Recall
- Psychological Concepts
- Anchoring Bias
- Confirmation Bias
- The Von Restorff Effect
- Hicks Law
- Perspectives on Reports
- Personas
- Maturity
- Multicloud
- Putting Data in the Path of Each Persona
- Data in the Path of Finance
- Data in the Path of Leadership
- Data in the Path of Engineers
- Connecting FinOps to the Rest of the Business
- Seek First to Understand
- Conclusion
- II. Inform Phase
- 9. The FinOps Lifecycle
- The Six Principles of FinOps
- #1: Teams Need to Collaborate
- #2: Decisions Are Driven by the Business Value of Cloud
- #3: Everyone Takes Ownership of Their Cloud Usage
- #4: FinOps Reports Should Be Accessible and Timely
- #5: A Centralized Team Drives FinOps
- #6: Take Advantage of the Variable Cost Model of the Cloud
- The Six Principles of FinOps
- The FinOps Lifecycle
- Inform
- Optimize
- Operate
- Considerations
- Where Do You Start?
- You Dont Have to Find All the Answers
- Conclusion
- 10. Inform Phase: Where Are You Right Now?
- Data Is Meaningless Without Context
- Seek First to Understand
- Organizational Work During This Phase
- Transparency and the Feedback Loop
- Benchmarking Team Performance
- What Great Looks Like
- Conclusion
- 11. Allocation: No Dollar Left Behind
- Why Allocation Matters
- Amortization: Its Accrual World
- Creating Goodwill and Auditability with Accounting
- The Spend Panic Tipping Point
- Spreading Out Shared Costs
- Chargeback Versus Showback
- A Combination of Models Fit for Purpose
- Accounts, Tagging, Account Organization Hierarchies
- The Showback Model in Action
- Chargeback and Showback Considerations
- Conclusion
- 12. Tags, Labels, and Accounts, Oh My!
- Tag- and Hierarchy-Based Approaches
- Getting Started with Your Strategy
- Communicate Your Plan
- Keep It Simple
- Formulate Your Questions
- Comparing the Allocation Options of the Big Three
- Comparing Accounts and Folders Versus Tags and Labels
- Organizing Accounts and Projects into Groups
- Tags and Labels: The Most Flexible Allocation Option
- Using Tags for Billing
- Getting Started Early with Tagging
- Deciding When to Set Your Tagging Standard
- Picking the Right Number of Tags
- Working Within Tag/Label Restrictions
- Maintaining Tag Hygiene
- Reporting on Tag Performance
- Getting Teams to Implement Tags
- Conclusion
- 13. Accurate Forecasting
- The State of Cloud Forecasting
- Forecasting Methodologies
- Forecasting Models
- Cloud Forecasting Challenges
- Manual Versus Automated Forecasts
- Inaccuracies
- Granularity
- Forecast Frequency
- Communication
- Future Projects
- Cost Estimation
- Impacts of Cost Optimization on Forecasts
- Forecast and Budgeting
- The Importance of Managing Teams to Budgets
- Conclusion
- III. Optimize Phase
- 14. Optimize Phase: Adjusting to Hit Goals
- Why Do You Set Goals?
- The First Goal Is Good Cost Allocation
- Is Savings the Goal?
- The Iron Triangle: Good, Fast, Cheap
- Hitting Goals with OKRs
- OKR Focus Area #1: Credibility
- OKR Focus Area #2: Maintainable
- OKR Focus Area #3: Control
- Goals as Target Lines
- Budget Variances
- Using Less Versus Paying Less
- Conclusion
- 15. Using Less: Usage Optimization
- The Cold Reality of Cloud Consumption
- Where Does Waste Come From?
- Usage Reduction by Removing/Moving
- Usage Reduction by Resizing (Rightsizing)
- Common Rightsizing Mistakes
- Relying on Recommendations That Use Only Averages or Peaks
- Failing to Rightsize Beyond Compute
- Not Addressing Your Resource Shape
- Not Simulating Performance Before Rightsizing
- Hesitating Due to Reserved Instance Uncertainty
- Going Beyond Compute: Tips to Control Cloud Costs
- Block Storage
- Get rid of orphaned volumes
- Focus on zero throughput or zero IOPS
- Make managing your block storage costs a priority
- Reduce the number of higher IOPS volumes
- Take advantage of elastic volumes
- Block Storage
- Object Storage
- Implement data retention policies
- Choose a storage tier/class that matches the data
- Networking
- Clean up unused IP addresses
- Optimize network routes
- Usage Reduction by Redesigning
- Scaling
- Scheduled Operations
- Effects on Reserved Instances
- Benefit Versus Effort
- Serverless Computing
- Not All Waste Is Waste
- Maturing Usage Optimization
- Advanced Workflow: Automated Opt-Out Rightsizing
- Tracking Savings
- Conclusion
- 16. Paying Less: Rate Optimization
- Compute Pricing
- On-Demand/Pay-As-You-Go
- Spot Resource Usage
- Commitment-Based Discounts
- Compute Pricing
- Storage Pricing
- Volume/Tiered Discounts
- Usage-Based
- Time-Based
- Negotiated Rates
- Custom Pricing
- Seller Private Offers
- BYOL Considerations
- Conclusion
- 17. Understanding Commitment-Based Discounts
- Introduction to Commitment-Based Discounts
- Commitment-Based Discount Basics
- Compute Instance Size Flexibility
- Conversions and Cancellations
- Overview of Usage Commitments Offered by the Big Three
- Amazon Web Services
- What Does an RI Provide?
- AWS Commitment Models
- AWS Reserved Instance
- Member Account Affinity
- Standard Versus Convertible RIs
- Instance Size Flexibility
- AWS Savings Plans
- Savings Bundles
- Microsoft Azure
- Azure Reservations
- Instance Size Flexibility
- Azure Savings Plans
- Google Cloud
- Google Committed Use Discounts
- Paying for Cores, Not Hours, in Google
- Google Billing and Sharing CUDs
- Google Billing Account and Ownership
- Applying Google CUDs in a Project
- Google Flexible Committed Use Discounts
- Conclusion
- 18. Building a Commitment-Based Discount Strategy
- Common Mistakes
- Steps to Building a Commitment-Based Discount Strategy
- Step 1: Learn the Fundamentals of Each Program
- Components of the commitment break-even point
- The commitment waterline
- Step 1: Learn the Fundamentals of Each Program
- Step 2: Understand Your Level of Commitment to Your Cloud Service Provider
- Step 3: Build a Repeatable Commitment-Based Discount Process
- Step 4: Purchase Regularly and Often
- Step 5: Measure and Iterate
- Step 6: Allocate Up-Front Commitment Costs Appropriately
- How to Manage the Commitment Strategy
- Purchasing Commitments Just-in-Time
- When to Rightsize Versus Commit
- The Zone Approach
- Who Pays for Commitments?
- Strategy Tips
- Conclusion
- 19. Sustainability: FinOps Partnering with GreenOps
- What Are Cloud Carbon Emissions?
- Scope 1, 2, and 3 Emissions
- Are Cloud Providers Green?
- Access
- Completeness
- Granularity
- Partnering with Engineers on Sustainability
- FinOps and GreenOps Better Together?
- GreenOps Remediations
- Avoid FinOps Working Against GreenOps
- Conclusion
- IV. Operate Phase
- 20. Operate: Aligning Teams to Business Goals
- Achieving Goals
- Staffing and Augmenting Your FinOps Team
- Processes
- Onboarding
- Responsibility
- Visibility
- Action
- How Do Responsibilities Help Culture?
- Carrot Versus Stick Approach
- Handling Inaction
- Putting Operate into Action
- Conclusion
- 21. Automating Cost Management
- What Is the Outcome You Want to Achieve?
- Automated Versus Manual Tasks
- Automation Tools
- Costs
- Other Considerations
- Tooling Deployment Options
- Automation Working Together
- Integration
- Automation Conflict
- Safety and Security
- How to Start
- What to Automate
- Tag Governance
- Scheduled Resource Start/Stop
- Usage Reduction
- Conclusion
- 22. Metric-Driven Cost Optimization
- Core Principles
- Automated Measurement
- Targets
- Achievable Goals
- Commitment coverage
- Savings metrics that make sense for all
- Combining metrics
- Data Driven
- Core Principles
- Metric-Driven Versus Cadence-Driven Processes
- Setting Targets
- Taking Action
- Bring It All Together
- Conclusion
- 23. FinOps for the Container World
- Containers 101
- The Move to Container Orchestration
- The Container FinOps Lifecycle
- Container Inform Phase
- Cost Allocation
- Container Proportions
- Custom container proportions
- Container proportions in Google Cloud
- Tags, Labels, and Namespaces
- Container Optimize Phase
- Cluster Placement
- Container Usage Optimization
- Centralize the rightsizing of clusters
- Decentralize the rightsizing of containers/pods
- Server Instance Rate Optimization
- Container Operate Phase
- Serverless Containers
- Conclusion
- 24. Partnering with Engineers to Enable FinOps
- Integrating Us with Them
- Whats on the Mind of the Engineer?
- Constraints and the Solving of Hard Problems
- Principles for Enabling Cost-Efficient Engineering
- #1: Maximize Value Rather Than Reduce Cost
- #2: Remember That We Are on the Same Team
- #3: Prioritize Improving Communication
- #4: Introduce Financial Constraints Early in the Product Development
- #5: Enablement, Not Control
- #6: Leadership Support Isnt Helpful, It Is Essential
- Data in the Path of the Engineer
- Models for Partnering with Engineering Teams
- Direct Contribution
- Indirect Collaboration
- Indirect Collaboration with Targeted Contribution
- Conclusion
- 25. Connectivity to Other Frameworks
- Total Cost of Ownership
- Working with Other Methodologies and Frameworks
- Find Out Whos Out There
- Make Friends and Share Goals
- Share Influence, Terminology, and Processes
- Share Infrastructure
- Share Knowledge
- Conclusion
- 26. FinOps Nirvana: Data-Driven Decision Making
- Unit Economics and Metrics
- Unit Economics Dont Have to Be About Revenue
- Calculating Unit Economic Metrics
- Spending Is Fine, Wasting Is Not
- Activity-Based Costing
- Coming Back to the Iron Triangle
- Whats Missing from the Equation?
- When Have You Won at FinOps?
- Conclusion
- 27. You Are the Secret Ingredient
- Call to Action
- Afterword on What to Prioritize (from J.R.)
- Index
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