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Cloud Cost Optimization Cloud FinOps Cloud Resources Management

Cloud cost optimization – Steps to make note of – Part 1

Cloud cost optimization is a practice any organization should adopt to ensure they SPEND RIGHT on the cloud. We have discussed what are the benefits of cloud cost optimization in the past. Let’s see what are common challenges in implementing the same and how to overcome them in this article.

Common Cloud Cost Optimization Challenges

While cloud cost optimization offer remarkable benefits, there are number of challenges that organization might face when trying to achieve the optimal savings. To mention a few,

  1. Lack of visibility into cloud costs : Without proper monitoring and analysis, it can be challenging to identify areas where cost optimization is required.
  2. Lack of expertise: Many organizations do not have dedicated cloud finops professionals or resources for managing cloud expenses.
  3. Lack of continuous monitoring: Without consistent monitoring, organizations might miss the opportunities for savings at the right time.

Now let’s see one by one how to overcome these below,

Step 1: Arm them

Every cloud stakeholder should be armed with documents, tutorials, training, guidance, and tools to effectively handle the cloud environment. FinOps products should have the ability to provide graphical representation and reports on cloud usage. Reports should facilitate the stakeholders to dive deep into granular pod level, node level, business unit level, tag level usage, associated cost details, etc. 

For example, our product CloudCADI offers reports and trend charts covering parameters like

  • CPU utilization
  • Memory
  • Disk Read
  • Disk Write
  • Storage Disk Read
  • Storage Disk Write
  • Network Received
  • Network Sent
  • Storage 

These reports should equip the cloud practitioners with the necessary cost information for effective decisions.

Step 2: Herd them

One of the major challenges the enterprises face is cross-functional transparency. There may be two app development teams developing two different cloud-native applications without knowing that they both use different monitoring tools that satisfy the same purpose. Procurement teams go with a vendor based on the options provided by the cloud teams and better negotiation with the vendor. They have little or no interest in the usage of the tools by diverse teams.

It is crucial to identify these common requirements and consolidate the resources accordingly. 

Step 3: Pivot on center

Cloud management is a tricky process. Cloud involves the operations team, finance team, cloud engineers, cloud architects, the procurement team, LoB managers, C-suite executives, etc. conveying a different message. Requirements vary from time to time. Organizations should have a centralized cloud cost optimization/FinOps team to mitigate the differences. Any cloud financial decision like buying new licenses, renewal, going hybrid cloud, etc., before reaching the CXO’s office should pass through the FinOps team’s scan.

After a thorough scanning of real needs and expectations, costs and business value mapping should be carried out. Once it is acknowledged, it should reach the decision maker’s table for approval. 

Related Reading: FinOps principles

Step 4: Analyze your cloud

Optimizing starts with analyzing. Review your organization’s cloud usage and spending patterns. This helps to identify the areas that needs restructuring or elimination and develop a targeted cost optimization strategy. You can either do this with a dedicated FinOps team or an effective cloud finops solution like CloudCADI.

Step 5: Retire the unused

There are resources that secretly weigh the cloud bills. Cloud practitioners set up auto-scaling to ensure enough capacity to face the traffic demands and improved cost management. Let’s consider Azure GPU machines. For high-end remote visualization, ML, and deep learning, GPU category, N-series virtual machines are ideal.

They accommodate low latency, high-throughput network interface for graphics or video-intensive workloads. When the engineers miss out on calculating the right number of nodes and configure in excess, the organization ends up paying for these zombie nodes.

For example,

Azure Instance NC12 with 1XK80 GPU offering 12 vCPUs costs $1.8 per hour. Consider 10 such instances counting 120 vCPUs configured but 5 left unused. At the end of the month, you need to pay $13140 instead of $6570 to Azure midst of no accountable benefits. 

It is hard to identify these nodes until you address these in the line items of lengthy cloud bills. For larger organizations handling several applications, identification and mitigation go out of manual efforts. Options left with us are to manually plan and closely watch the configuration process, identify the unclaimed assets, and retire (which is not always feasible) or to go with cloud cost optimization products.  

Step 6: Leverage services from your CSPs

Cloud Service Providers(CSPs) provide various cost saving options to facilitate clients in saving their cloud investments. Savings plans, discount on bulk scaling, reserved instances are a few options to make use of and realize significant cost savings.

Organizations tend to lose millions when they miss out on optimizing their new workloads along with the previous. Select a FinOps solution that runs along with your vision, each day dragging everything under one umbrella.

Keep optimizing. CloudCADI is with you!

Find this useful? Read Part 2 of Cloud Cost Optimization Steps here.

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Cloud Cost Optimization Cloud Resources Management

Benefits of Cloud FinOps: Top 5 Reasons Why Should You Implement Now

“95% of new digital workload deployment will be cloud-native by 2025 – Gartner”

Cloud FinOps and its benefits is trending the cloud industry for quite some time now. Pandemic, scalability, flexibility, and gaining a competitive edge are a few reasons which fostered the businesses to lift and shift their infrastructure to the cloud at the earliest.

The Cloud migration team considers various factors while planning the roadmap for the whole migration process. They invest ample time and effort in assessing all the applications, selecting the cloud providers (GCP/Azure/AWS/etc.), checking their security frameworks, compliance, and planning the cloud talent, maintenance, and support.

One key factor that they to miss notice is, if the bills they pay the Cloud Service Providers are only for the cloud assets the business intended and adding value.

What is Cloud FinOps?

Cloud FinOps – “Cloud Financial Operations”, is an organization wide practice that brings financial visibility and realization of an organization’s cloud spending. So every cloud stakeholder becomes financially accountable of their cloud resource choices that aligns technology investments effectively to business goals. Cloud FinOps offers a plethora of benefits other than this. Let’s see in this article in detail why is it quintessential.

Check out this short video to understand what is cloud finops.

What are the benefits of Cloud FinOps?

1. Alleviates uninformed Decisions

“You may be overspending on your cloud!”

Without proper monitoring of cloud resources spending, costly business decisions are less clear and can have negative or suboptimal business impacts. Real-time data insights and granular reports from Cloud FinOps products allow business leaders to

      • Compare the enterprise cloud resource utilization by time

      • Understand business units that require more resources

      • Get service level cloud utilization

      • Monitor resources that are left idle or underused.

    This accommodates LOB managers to optimize their cloud utilization with a clear understanding of the financial implications of their decisions. They take ownership of their cloud usage.

    2. Brings Cultural Shift

    Every cloud consumer should be able to easily obtain and understand cloud usage and spending data. Unaggregated data can make it extremely difficult for teams to clarify and implement cloud-consuming best practices. 

    Businesses today are increasingly migrating and spending on cloud resources. While many firms may feel that they are taking the necessary precautions to understand and handle this growth, they may be doing only the bare minimum, leaving resource management teams frustrated.

    With the adoption of Cloud FinOps, firms can now optimize their cloud consumption environment in the best conceivable way and create a culture that benefits all cloud-consuming parties.  

    Suggested reading: How to plan an effective cloud cost optimization plan? – Explained Step by Step

    3. Bring a unified ecosystem

    unified ecosystem
    Image Source: Agilitypr

    There is an invisible complex and frustrating culture split between DevOps, IT, and Finance teams in every enterprise. Request, approval, and intimation processes differ from each other even though they all work towards a common business goal. Certain terms and jargons make no sense to the other team (ex: containers allocation, VMs count). Moreover, the finance team loses its guardrails on cloud infrastructure procurement as the cloud engineering team step into the process.

    Cloud FinOps products aid them to stay updated on their cloud cost optimization based on their roles and responsibilities.

    Example: Finance team can view the cost data and reports of the resources while the engineering team can view the processer utilization details.

    This ensures smooth operations by transforming into a unified, effective, efficient ecosystem.

    4. Empower cloud engineers

    Engineers prefer cloud to traditional on-premise data centers as it accommodates scalable architecture, flexible design, as and when required storage allocation, etc. Applications that involve complex calculations demand more storage space. They focus more on agile, faster deployment, and bug-free delivery rather than worrying about storage space availability, computing power, and cloud resource availability. This may lead to unnecessary conflicts between the engineers and the cloud management team. It has the potential to restrict the liberty of engineers to explore and innovate while the cloud management team spends on resources that add no value addition to businesses. Bringing Cloud FinOps into the operations empowers both by having clear visibility and control over the resource utilization.

    5. Ensure streamlined process

    Every business has its own mission and vision. Strategies may change as per the demands and challenges we come across, but the goal is to progress in the right direction amidst all odds. Cloud adoption indeed aids businesses to stay abreast of their competitors. Neglecting the fact of cost-benefit analysis after the migration process, will let the business stay where they are and pay the same bills or more.  Cloud FinOps introduce financial prudence among the teams. Beyond, Cloud FinOps products like CloudCADI provide intelligent recommendations on how the cloud engineers can alter; rearrange; rebuild their resources/tools for an optimized cloud environment. This ensures streamlined business progress with contribution from everyone. 

    Other Added Benefits of Cloud FinOps

    6. Drives Cost Optimization

    Introducing cloud finops as a practice, drives cloud cost optimization throughout the organization. Rather than scaling up the VMs or EC2 or any machines based on its availability, they now choose based on the business needs. This in turn ensure every penny spent on cloud is leveraged.

    7. Ensures alignment with business goals

    Adopting cloud finops ensures the allocation and utilization of cloud resources are in harmony with overall business goals and priorities. This ensures that the technology infrastructure fosters rather than hinders the path towards company’s vision to success.

    8. Helps Risk Mitigation

    Cloud FinOps practice helps to mitigate financial risks associated with the use of cloud services. As we monitor and  manage costs closely like tracking expenses, analyzing usage patterns, identifying areas for cost optimization, businesses can proactively identify the potential financial risks such as budget overruns, inefficient resource allocation  and uncontrolled expenses.

    9. Fosters Continuous Improvement

    Cloud environment is dynamic with changing business requirements and evolving technology requirements. Iterative optimization is necessary where organizations regularly review their cloud spending patterns, identify areas for enhancement and implement changes for sustainable business. FinOps effectively accommodates this and assures operational efficiency. 

    10. Emphasize budget control

    Cloud FinOps practices emphasizes the importance of setting and controlling budgets for cloud spending.  By establishing  clear budgeting guidelines and thresholds, organisations can proactively manage and control their cloud expenses. This in turn allows to maintain financial discipline.

    Whom can you trust for your Cloud FinOps?

    “Newfound Understanding and Growth Through CloudCADI”

    Experience the benefits of Cloud FinOps with CloudCADI, a cloud financial management solution by Amadis Technologies, to partner with you and take hold of your cloud consumption habits while optimizing for future business growth!

    Transparency

    CloudCADI’s single pane view offers simple, yet information-dense charts and graphs detailing cost, performance, and utilization of all enterprise cloud resources consumed via IaaS / SaaS / PaaS models

    Actionable Insights

    CloudCADI offers complete analysis and recommendations for Azure services. Recommendations are made through the analysis of multiple parameters. An average of 6% – 12% monthly savings has been achieved by our clients who have adopted and utilized CloudCADI’s features.

    Non-Intrusive

    CloudCADI resides within the client’s public cloud environment without any third-party agents, eliminating the security breach threats. 

    Other Key Features,

    • Externalized Business Rule Engine: It allows users to play around as per their unique requirements.
    • Showback: It allows you to drill down and find the root cause of the cost overruns to take immediate actions.
    • End-to-End Automation: It facilitates the seamless integration of ticketing tools like ServiceNow.
    • Role based analytics: CloudCADI facilitates role-based visibility to dashboard.
    • Alerts: It has customizable reporting& alert capabilities to give visibility over IaaS/SaaS/PaaS services and assets, resulting in a better understanding of activities in the cloud

     

    CloudCADI enables cloud consumers to be the best they can be

      • Cloud Optimization 
      • Performance Efficiency  
      • Operational Excellence  
      • Actionable Insights 
      • Intelligent recommendations

    Book a demo to know more about CloudCADI features and call our experts for pricing. We will show you how one solution can enable you to leverage your entire cloud environment.

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