Tanner attended AWS re:Invent 2023, participating in several sessions focused on cloud cost management (FinOps) within AWS. Cloud FinOps is about intelligently managing cloud expenses and implementing a sustainable, effective financial strategy for cloud operations. Below are key insights on Cloud FinOps from AWS re:Invent 2023:
- Cost-Aware Workloads: Effective cloud expense management starts with exercising cost-awareness when creating workloads in AWS. This process involves a continuous cycle of refinement throughout the workload’s lifecycle, ensuring cost-efficiency and a strong return on investment.
- Cloud Financial Management System: A successful approach requires a permanent, integrated system for managing cloud finances, rather than temporary fixes. It’s akin to embracing a lifestyle change over a temporary diet; cost management is ongoing and essential to operations.
- Consumption Mindset: Take advantage of the elastic nature of cloud services. Only pay for what is actually used, with a deep understanding of this usage. Efficiency is achieved through automation, the use of managed services, and meticulous tracking of expenses with detailed tagging and disciplined management practices.
- Key Focus Areas: The FinOps strategy should include mastering cloud financial management practices, monitoring expenses and usage, selecting cost-effective resources, balancing needs with supply (cloud economics), and continuously seeking improvement.
- Long-Term Perspective: Early investment in cost optimization leads to quicker realization of the cloud’s economic benefits. Cloud FinOps is a marathon, not a sprint, and the key is to start now.
- Four Pillars of Cloud Financial Operations: To maintain FinOps effectiveness, teams can rely on four pillars:
- Visibility and Accountability: Tracking actions and their financial implications.
- Cost Optimization: Actively seeking ways to reduce costs without compromising service quality.
- Forecasting: Financially planning for future cloud needs.
- Efficient Operation: Running cloud financial operations smoothly and effectively.
This framework for Cloud FinOps is not just advisable; it’s a blueprint for financial success in the cloud.
AWS re:Invent 2023 emphasized holistic, long-term strategies for cloud financial operations, focusing on efficiency, accountability, and continuous improvement. For developing a Cloud FinOps practice, staying updated with industry leaders like AWS is crucial.