Cloud Computing
FinOps
Definition
FinOps, which stands for "Cloud Financial Operations", is a cultural practice and framework that brings financial accountability to the variable spend model of the cloud. It helps organizations manage their cloud costs and get the most business value out of their cloud investment.
Why It Matters
The pay-as-you-go nature of the cloud can lead to unpredictable and spiraling costs if not managed carefully. FinOps provides the tools and processes to understand, optimize, and control cloud spending.
Contextual Example
A FinOps team analyzes a company's AWS bill. They notice a large amount of spending on idle development servers. They implement a policy to automatically shut down these servers outside of business hours, resulting in significant cost savings.
Common Misunderstandings
- FinOps is a collaboration between finance, technology, and business teams.
- Key FinOps activities include cost visibility, optimization (e.g., using Reserved Instances), and governance.