Cloud FinOps. Collaborative, Real-Time Cloud Financial Management J. R. Storment, Mike Fuller

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Spis treści książki

• Preface
  • 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?
  • The FinOps Heros Journey
  • Where Did FinOps Come From?
  • The Definition
  • Real-Time Reporting (The Prius Effect)
  • Core Principles of FinOps
  • When Should You Start FinOps?
  • Starting with the End in Mind: Unit Economics
  • Conclusion
• 2. Why FinOps?
  • Use Cloud for the Right Reasons
  • The Problem
  • The Impact of Not Adopting FinOps
  • Conclusion
• 3. Cultural Shift and the FinOps Team
  • Who Does FinOps?
    • Why a Centralized Team?
    • The Role of Each Team in FinOps
      • Executives
      • FinOps practitioners
      • Engineering and operations
      • Finance and procurement/sourcing
  • A New Way of Working Together
  • Where Does Your FinOps Team Sit?
  • Understanding Motivations
    • Engineers
    • Finance People
    • Executives
    • Procurement and Sourcing People
  • FinOps Throughout Your Organization
  • Hiring for FinOps
  • FinOps Culture in Action
  • Conclusion
• 4. The Language of FinOps and Cloud
  • Defining a Common Lexicon
  • Defining the Basic Terms
    • Defining Finance Terms for Cloud Professionals
  • Abstraction Assists Understanding
  • Cloud Language Versus Business Language
  • Creating a Babel Fish Between Your DevOps and Finance Teams
  • The Need to Educate Both Sides of the House
  • Benchmarking and Gamification
  • Conclusion
• 5. Anatomy of the Cloud Bill
  • Cloud Billing Complexity
  • The Basic Format of the 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
  • A Simple Formula for Spending
    • 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
• II. Inform Phase
• 6. The FinOps Lifecycle
  • The Six Principles of FinOps
    • Teams Need to Collaborate
    • Decisions Are Driven by the Business Value of Cloud
    • Everyone Takes Ownership of Their Cloud Usage
    • FinOps Reports Should Be Accessible and Timely
    • A Centralized Team Drives FinOps
    • Take Advantage of the Variable Cost Model of the Cloud
  • The FinOps Lifecycle
  • Inform
  • Optimize
  • Operate
  • Considerations
  • Where Do You Start?
  • Why to Start at the Beginning
  • Conclusion
• 7. Where Are You?
  • Data Is Meaningless Without Context
  • Seek First to Understand
  • Organizational Work During This Phase
  • Transparency and the Feedback Loop
  • Benchmarking Team Performance
  • Forecast and Budgeting
  • The Importance of Managing Teams to Budgets
  • What Great Looks Like: Crawl, Walk, Run
  • Conclusion
• 8. Allocation: No Dollar Left Behind
  • Why Allocation Matters
  • Chargeback Versus Showback
    • A Combination of Models Fit for Purpose
  • The Showback Model in Action
  • Chargeback and Showback Considerations
  • Spreading Out Shared Costs
  • Amortization: Its Accrual World
  • Creating Goodwill and Auditability with Accounting
  • Going Beyond Cloud with the TBM Taxonomy
  • The Spend Panic Tipping Point
  • Conclusion
• 9. Tags, Labels, and Accounts, Oh My!
  • Cost Allocation Using 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 Projects Using Folders in Google Cloud Platform
  • 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
• III. Optimize Phase
• 10. 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: Sustainability
    • OKR Focus Area #3: Control
  • Goals as Target Lines
  • Detecting Anomalies
  • Reducing Spend to Meet Forecast
    • Using Less Versus Paying Less
  • Conclusion
• 11. 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 dont account for spikes in utilization
      • Failing to rightsize beyond compute
      • Not addressing your resource shape
      • Not simulating performance before rightsizing
      • Hesitating due to reserved instance uncertainty
    • Going Beyond EC2: Tips to Control Block Storage Costs
      • 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
  • Usage Reduction by Redesigning
    • Scaling
    • Scheduled Operations
  • Effects on Reserved Instances
  • Benefit Versus Effort
  • Serverless Computing
  • Not All Waste Is Waste
  • Crawl, Walk, Run
  • Advanced Workflow: Automated Opt-Out Rightsizing
  • Tracking Savings
  • Conclusion
• 12. Paying Less: Rate Optimization
  • Compute Pricing
    • On-Demand
    • Spot/Preemptible/Low-Priority Resource Usage
    • Reservations
  • Storage Pricing
  • Volume Discounts
    • Usage-Based
    • Time-Based
  • Negotiated Rates
    • Custom Pricing Agreements
    • Seller Private Offers
  • BYOL Considerations
  • Conclusion
• 13. Paying Less with Reserved Instances and Committed Use Discounts
  • Introduction to Reservations
  • Reserved/Committed Usage
    • Instance Size Flexibility
    • Conversions and Cancellations
  • Overview of Usage Commitments Offered by the Big Three
  • Amazon Web Services
    • What Does a Reserved Instance Provide?
    • Parameters of an AWS Reserved Instance
    • Linked Account Affinity
    • Standard Versus Convertible Reserved Instances
    • Instance Size Flexibility
    • Savings Plans
  • Google Cloud Platform
    • Not Paying for VM Instance Hours
    • Billing and Sharing CUDs
    • Relationships Between Organizations and Billing Accounts
    • Applying CUDs Within a Project
  • Microsoft Azure
    • Instance Size Flexibility
  • Conclusion
• 14. RI and CUD Strategies
  • Common Mistakes
  • Steps to Building an RI Strategy
    • Learn the Fundamentals
      • Components of the RI break-even point
      • The RI waterline
    • Build a Repeatable RI Process
    • Purchase Regularly and Often
    • Measure and Iterate
    • Allocate RI Costs Appropriately
  • The Centralized Reservation Model
  • Timing Your Reservations
  • When to Rightsize Versus Reserve
  • Building Your Strategy
    • Level of Commitment to Your Cloud
    • The Cost of Capital
    • The Red Zone/Green Zone Approach
    • Purchase Approvals
    • Who Pays for Reservations?
    • Strategy Tips
  • Conclusion
• IV. Operate Phase
• 15. Aligning Teams to Business Goals
  • Achieving Goals
  • Processes
    • Onboarding
    • Responsibility
    • Visibility
    • Action
  • How Do Responsibilities Help Culture?
    • Carrot Versus Stick Approach
    • Working with Bad Citizens
  • Putting Operate into Action
  • Conclusion
• 16. Metric-Driven Cost Optimization
  • Core Principles
    • Automated Measurement
    • Targets
    • Achievable Goals
      • Reserved coverage
      • Savings metrics that make sense for all
      • Combining metrics
    • Data Driven
  • Metric-Driven Versus Cadence-Driven Processes
  • Setting Targets
  • Taking Action
  • Conclusion
• 17. Automating Cost Management
  • Whats the Goal of Automation?
    • 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
• 18. 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 GCP
    • Tags, Labels, and Namespaces
  • Container Optimize Phase
    • Cluster Placement
    • Container Usage Optimization
      • Idle resources for containers
      • Rightsizing clusters and containers
      • Container classes within Kubernetes
    • Server Instance Rate Optimization
  • Container Operate Phase
  • Serverless Containers
  • Conclusion
• 19. Managing to Unit Economics: FinOps Nirvana
  • Metrics as the Foundation of Unit Economics
  • Coming Back to the Iron Triangle
  • Activity-Based Costing
  • Whats Missing from the Equation?
  • Conclusion
  • Whats Next?
• Afterword on What to Prioritize (from J.R.)
• Index

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