FinOps is an evolving cloud financial management discipline and cultural practice that enables organizations to get maximum business value by helping engineering, finance, IT, and business teams to collaborate to take advantage of the variable cost model of the cloud.
FinOps = Finance + DevOps
FinOps is a portmanteau of "Finance" and "DevOps", stressing the communications and collaboration between business and engineering teams.
The Culture
At its core, FinOps is a cultural practice. It’s the way for teams to manage their cloud costs, where everyone takes ownership of their cloud usage supported by a central best-practices group.
Cross-functional
Cross-functional teams in Engineering, Finance, Product, etc. work together to enable faster product delivery, while at the same time gaining more financial control and predictability.
The Framework
The FinOps Framework, a set of best practices, standards, and guidance by the FinOps Foundation and its open-source community, is based on the following six principles which act as the north star objectives of the FinOps guidance.
The Principles
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
FinOps includes activities such as:
Analyzing and reducing cloud expense
Maximizing cost-efficiency
Improving the overall return on investment (ROI) of cloud services
FinOps professionals use a variety of tools and techniques to achieve these goals, including:
Cost optimization strategies
Cost allocation and reporting tools
Real-time monitoring and alerting systems
They also work closely with other teams, such as engineering and operations, to ensure that cloud resources are used effectively and efficiently.
FinOps aims to help organizations get the most value out of their cloud investments by optimizing their cloud expenditure and maximizing the efficiency of their cloud usage. This can help organizations to reduce costs, improve the performance of their applications and services, and increase their overall competitiveness.
Overview
What was the motivation for creating the guide?
As a cloud engineer, I work with different types of customers, including enterprises, startups, ISVs (independent software vendors), and digital native companies. In today's economic climate, cost, efficiency, and optimization are the top priorities of all customers.
Optimizing and reducing cloud costs can be challenging due to the dispersed nature of relevant information.
To address this issue, I have written this 'Azure FinOps Guide', a comprehensive resource that combines all Azure FinOps information to make customers' life easier.
Who is the audience for this guide?
The audience for this guide includes organizations that use Azure cloud services and are interested in optimizing, monitoring, and reducing their cloud costs. This may include:
Financial decision-makers within businesses of all sizes
Cloud engineers
IT professionals
ISVs (independent software vendors) that provide cloud-related services to their clients and want to optimize their cost-efficiency
How to use this guide?
Use the table of contents below to locate a specific tool, topic, or services you are interested in, such as cost optimization techniques or strategies for improving cloud efficiency.
Examples
Want to see ways to optimize your cloud expense:
Navigate to the "How to Optimize?" section.
Choose a specific topic from the list to learn more.
If you are interested in optimizing and saving on your storage costs:
Navigate to the "Content" section.
Select the "Storage" sub-section to find relevant topics.
Choose a specific topic from the list to learn more.
Tools
The table below contains a collection of native tools that are related to FinOps on Azure:
Analyses configurations and usage telemetry and offers personalized, actionable recommendations to help optimize resources for reliability, security, operational excellence, performance, and cost.
Estimates the price, savings, and eligible instances you can use in Azure based on your current Software Assurance licenses. (Windows VMs, SQL Server VMs, SQL Managed Instance, and SQL Database)
Analyses configurations and usage telemetry and offers personalized, actionable recommendations to help optimize resources for reliability, security, operational excellence, performance, and cost.
Reduce the costs of running your workloads in the cloud using your on-premises Software Assurance-enabled Windows Server and SQL Server licenses on Azure. (Licensing benefit)
Learn how to use the cost optimization pillar of the Microsoft Azure Well-Architected Framework to design a cloud-based architecture that is efficient, eliminates waste, and gives you full visibility into where your money is spent on cloud resources.
Learn how to use cost analysis to understand how your costs accrue each month. Use this understanding to create an Azure budget to monitor and alert you on your costs.
Save money by taking advantage of Azure reservations. Analyze and decide what to purchase and then learn how to purchase. Understand the benefits provided through compute purchases and optimize against any underuse. Perform basic reporting on your reservations.
Use Power BI to understand where your money is being spent in Azure so you can help your organization to optimize its costs. Identify key cost drivers, trends, and anomalies in your subscriptions and resource groups over time. Understand and manage hybrid benefits usage within your organization. Understand and optimize your reserved instance coverage to maximize your savings. Create custom dashboards to address your organization's more complex scenarios and analysis needs.
Reconcile your bill and analyze costs across your customers and resources using Microsoft Cost Management as a partner. Determine which of your resources receive discounted pricing. Manage costs through budgets to stay within defined spending limits. Enable your customers to use Microsoft Cost Management with pay-as-you-go rates.
Empowering teams to optimize their Azure Cloud spend with FinOps best practices
Maulik Soni
May 2023
O'Reilly
Content
This content summary brings together a wealth of information and resources on the discipline of FinOps in the cloud.
It covers a wide range of topics, domains, products, and resources collected from different channels like:
Microsoft Tech Community (Blog Posts)
Microsoft Azure (Official Docs)
Microsoft Learn
Microsoft Ignite
Azure Friday
YouTube
GitHub
Whether you are new to FinOps or are an experienced professional, this summary is an invaluable resource for staying up-to-date with the latest developments and trends in the field.
The FinOps and Usage Specification (FOCUS™) is an open-source specification that defines clear requirements for cloud vendors to produce consistent cost and usage datasets.
It is founded to normalizes cost and usage datasets across cloud vendors and reduces complexity for FinOps Practitioners.
I would appreciate it if you could tell me what you think of this Azure FinOps Guide.
Your thoughts and suggestions will help me improve it, so please don't hesitate to leave your feedback below.
Updated Dec 24, 2024
Version 70.0
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This article centralizes Azure FinOps information and tools to enabling a better understanding and optimization of cloud costs.
","body":"\n
This article centralizes Azure FinOps (Financial Operations) information and tools to enabling a better understanding and optimization of cloud costs.
\n
\n
The main purposes of this guide is to help customers do more with less by:
\n
\n
Identifying cost-saving opportunities
\n
Optimizing cloud efficiency
\n
Gaining a better understanding and control of cloud costs
\n
\n
\n
Contribution to this guide
\n
The community is encouraged to contribute to this guide! For any content suggestion please visit this GitHub Repository.
FinOps is an evolving cloud financial management discipline and cultural practice that enables organizations to get maximum business value by helping engineering, finance, IT, and business teams to collaborate to take advantage of the variable cost model of the cloud.
\n
\n
FinOps = Finance + DevOps
\n
FinOps is a portmanteau of \"Finance\" and \"DevOps\", stressing the communications and collaboration between business and engineering teams.
\n
\n
The Culture
\n
At its core, FinOps is a cultural practice. It’s the way for teams to manage their cloud costs, where everyone takes ownership of their cloud usage supported by a central best-practices group.
\n
\n
Cross-functional
\n
Cross-functional teams in Engineering, Finance, Product, etc. work together to enable faster product delivery, while at the same time gaining more financial control and predictability.
\n
\n
The Framework
\n
The FinOps Framework, a set of best practices, standards, and guidance by the FinOps Foundation and its open-source community, is based on the following six principles which act as the north star objectives of the FinOps guidance.
\n
\n
The Principles
\n
\n
Teams need to collaborate
\n
Decisions are driven by the business value of cloud
\n
Everyone takes ownership of their cloud usage
\n
FinOps reports should be accessible and timely
\n
A centralized team drives FinOps
\n
Take advantage of the variable cost model of the cloud
\n
\n
\n
FinOps includes activities such as:
\n
\n
Analyzing and reducing cloud expense
\n
Maximizing cost-efficiency
\n
Improving the overall return on investment (ROI) of cloud services
\n
\n
FinOps professionals use a variety of tools and techniques to achieve these goals, including:
\n
\n
Cost optimization strategies
\n
Cost allocation and reporting tools
\n
Real-time monitoring and alerting systems
\n
\n
They also work closely with other teams, such as engineering and operations, to ensure that cloud resources are used effectively and efficiently.
\n
\n
FinOps aims to help organizations get the most value out of their cloud investments by optimizing their cloud expenditure and maximizing the efficiency of their cloud usage. This can help organizations to reduce costs, improve the performance of their applications and services, and increase their overall competitiveness.
\n
\n
\n
\n
\n
Overview
\n
\n
What was the motivation for creating the guide?
\n
As a cloud engineer, I work with different types of customers, including enterprises, startups, ISVs (independent software vendors), and digital native companies. In today's economic climate, cost, efficiency, and optimization are the top priorities of all customers.
\n
\n
Optimizing and reducing cloud costs can be challenging due to the dispersed nature of relevant information.
\n
To address this issue, I have written this 'Azure FinOps Guide', a comprehensive resource that combines all Azure FinOps information to make customers' life easier.
\n
\n
Who is the audience for this guide?
\n
The audience for this guide includes organizations that use Azure cloud services and are interested in optimizing, monitoring, and reducing their cloud costs. This may include:
\n
\n
Financial decision-makers within businesses of all sizes
\n
Cloud engineers
\n
IT professionals
\n
ISVs (independent software vendors) that provide cloud-related services to their clients and want to optimize their cost-efficiency
\n
\n
\n
How to use this guide?
\n
Use the table of contents below to locate a specific tool, topic, or services you are interested in, such as cost optimization techniques or strategies for improving cloud efficiency.
\n
\n
Examples
\n
\n
Want to see ways to optimize your cloud expense:\n
\n
Navigate to the \"How to Optimize?\" section.
\n
Choose a specific topic from the list to learn more.
\n
\n
\n
If you are interested in optimizing and saving on your storage costs:\n
\n
Navigate to the \"Content\" section.
\n
Select the \"Storage\" sub-section to find relevant topics.
\n
Choose a specific topic from the list to learn more.
\n
\n
\n
\n
\n
Tools
\n
The table below contains a collection of native tools that are related to FinOps on Azure:
Analyses configurations and usage telemetry and offers personalized, actionable recommendations to help optimize resources for reliability, security, operational excellence, performance, and cost.
Estimates the price, savings, and eligible instances you can use in Azure based on your current Software Assurance licenses. (Windows VMs, SQL Server VMs, SQL Managed Instance, and SQL Database)
Analyses configurations and usage telemetry and offers personalized, actionable recommendations to help optimize resources for reliability, security, operational excellence, performance, and cost.
Reduce the costs of running your workloads in the cloud using your on-premises Software Assurance-enabled Windows Server and SQL Server licenses on Azure. (Licensing benefit)
Learn how to use the cost optimization pillar of the Microsoft Azure Well-Architected Framework to design a cloud-based architecture that is efficient, eliminates waste, and gives you full visibility into where your money is spent on cloud resources.
Learn how to use cost analysis to understand how your costs accrue each month. Use this understanding to create an Azure budget to monitor and alert you on your costs.
Save money by taking advantage of Azure reservations. Analyze and decide what to purchase and then learn how to purchase. Understand the benefits provided through compute purchases and optimize against any underuse. Perform basic reporting on your reservations.
Use Power BI to understand where your money is being spent in Azure so you can help your organization to optimize its costs. Identify key cost drivers, trends, and anomalies in your subscriptions and resource groups over time. Understand and manage hybrid benefits usage within your organization. Understand and optimize your reserved instance coverage to maximize your savings. Create custom dashboards to address your organization's more complex scenarios and analysis needs.
Reconcile your bill and analyze costs across your customers and resources using Microsoft Cost Management as a partner. Determine which of your resources receive discounted pricing. Manage costs through budgets to stay within defined spending limits. Enable your customers to use Microsoft Cost Management with pay-as-you-go rates.
Empowering teams to optimize their Azure Cloud spend with FinOps best practices
\n
Maulik Soni
\n
May 2023
\n
O'Reilly
\n
\n\n
\n
\n
\n
Content
\n
This content summary brings together a wealth of information and resources on the discipline of FinOps in the cloud.
\n
It covers a wide range of topics, domains, products, and resources collected from different channels like:
\n
\n
Microsoft Tech Community (Blog Posts)
\n
Microsoft Azure (Official Docs)
\n
Microsoft Learn
\n
Microsoft Ignite
\n
Azure Friday
\n
YouTube
\n
GitHub
\n
\n
Whether you are new to FinOps or are an experienced professional, this summary is an invaluable resource for staying up-to-date with the latest developments and trends in the field.
The FinOps and Usage Specification (FOCUS™) is an open-source specification that defines clear requirements for cloud vendors to produce consistent cost and usage datasets.
\n
It is founded to normalizes cost and usage datasets across cloud vendors and reduces complexity for FinOps Practitioners.
FinOps is an evolving cloud financial management discipline and cultural practice that enables organizations to get maximum business value by helping engineering, finance, IT, and business teams to collaborate to take advantage of the variable cost model of the cloud.
\n
\n
FinOps = Finance + DevOps
\n
FinOps is a portmanteau of \"Finance\" and \"DevOps\", stressing the communications and collaboration between business and engineering teams.
\n
\n
The Culture
\n
At its core, FinOps is a cultural practice. It’s the way for teams to manage their cloud costs, where everyone takes ownership of their cloud usage supported by a central best-practices group.
\n
\n
Cross-functional
\n
Cross-functional teams in Engineering, Finance, Product, etc. work together to enable faster product delivery, while at the same time gaining more financial control and predictability.
\n
\n
The Framework
\n
The FinOps Framework, a set of best practices, standards, and guidance by the FinOps Foundation and its open-source community, is based on the following six principles which act as the north star objectives of the FinOps guidance.
\n
\n
The Principles
\n
\n
Teams need to collaborate
\n
Decisions are driven by the business value of cloud
\n
Everyone takes ownership of their cloud usage
\n
FinOps reports should be accessible and timely
\n
A centralized team drives FinOps
\n
Take advantage of the variable cost model of the cloud
\n
\n
\n
FinOps includes activities such as:
\n
\n
Analyzing and reducing cloud expense
\n
Maximizing cost-efficiency
\n
Improving the overall return on investment (ROI) of cloud services
\n
\n
FinOps professionals use a variety of tools and techniques to achieve these goals, including:
\n
\n
Cost optimization strategies
\n
Cost allocation and reporting tools
\n
Real-time monitoring and alerting systems
\n
\n
They also work closely with other teams, such as engineering and operations, to ensure that cloud resources are used effectively and efficiently.
\n
\n
FinOps aims to help organizations get the most value out of their cloud investments by optimizing their cloud expenditure and maximizing the efficiency of their cloud usage. This can help organizations to reduce costs, improve the performance of their applications and services, and increase their overall competitiveness.
\n
\n
\n
\n
\n
Overview
\n
\n
What was the motivation for creating the guide?
\n
As a cloud engineer, I work with different types of customers, including enterprises, startups, ISVs (independent software vendors), and digital native companies. In today's economic climate, cost, efficiency, and optimization are the top priorities of all customers.
\n
\n
Optimizing and reducing cloud costs can be challenging due to the dispersed nature of relevant information.
\n
To address this issue, I have written this 'Azure FinOps Guide', a comprehensive resource that combines all Azure FinOps information to make customers' life easier.
\n
\n
Who is the audience for this guide?
\n
The audience for this guide includes organizations that use Azure cloud services and are interested in optimizing, monitoring, and reducing their cloud costs. This may include:
\n
\n
Financial decision-makers within businesses of all sizes
\n
Cloud engineers
\n
IT professionals
\n
ISVs (independent software vendors) that provide cloud-related services to their clients and want to optimize their cost-efficiency
\n
\n
\n
How to use this guide?
\n
Use the table of contents below to locate a specific tool, topic, or services you are interested in, such as cost optimization techniques or strategies for improving cloud efficiency.
\n
\n
Examples
\n
\n
Want to see ways to optimize your cloud expense:\n
\n
Navigate to the \"How to Optimize?\" section.
\n
Choose a specific topic from the list to learn more.
\n
\n
\n
If you are interested in optimizing and saving on your storage costs:\n
\n
Navigate to the \"Content\" section.
\n
Select the \"Storage\" sub-section to find relevant topics.
\n
Choose a specific topic from the list to learn more.
\n
\n
\n
\n
\n
Tools
\n
The table below contains a collection of native tools that are related to FinOps on Azure:
Analyses configurations and usage telemetry and offers personalized, actionable recommendations to help optimize resources for reliability, security, operational excellence, performance, and cost.
Estimates the price, savings, and eligible instances you can use in Azure based on your current Software Assurance licenses. (Windows VMs, SQL Server VMs, SQL Managed Instance, and SQL Database)
Analyses configurations and usage telemetry and offers personalized, actionable recommendations to help optimize resources for reliability, security, operational excellence, performance, and cost.
Reduce the costs of running your workloads in the cloud using your on-premises Software Assurance-enabled Windows Server and SQL Server licenses on Azure. (Licensing benefit)
Learn how to use the cost optimization pillar of the Microsoft Azure Well-Architected Framework to design a cloud-based architecture that is efficient, eliminates waste, and gives you full visibility into where your money is spent on cloud resources.
Learn how to use cost analysis to understand how your costs accrue each month. Use this understanding to create an Azure budget to monitor and alert you on your costs.
Save money by taking advantage of Azure reservations. Analyze and decide what to purchase and then learn how to purchase. Understand the benefits provided through compute purchases and optimize against any underuse. Perform basic reporting on your reservations.
Use Power BI to understand where your money is being spent in Azure so you can help your organization to optimize its costs. Identify key cost drivers, trends, and anomalies in your subscriptions and resource groups over time. Understand and manage hybrid benefits usage within your organization. Understand and optimize your reserved instance coverage to maximize your savings. Create custom dashboards to address your organization's more complex scenarios and analysis needs.
Reconcile your bill and analyze costs across your customers and resources using Microsoft Cost Management as a partner. Determine which of your resources receive discounted pricing. Manage costs through budgets to stay within defined spending limits. Enable your customers to use Microsoft Cost Management with pay-as-you-go rates.
Empowering teams to optimize their Azure Cloud spend with FinOps best practices
\n
Maulik Soni
\n
May 2023
\n
O'Reilly
\n
\n\n
\n
\n
\n
Content
\n
This content summary brings together a wealth of information and resources on the discipline of FinOps in the cloud.
\n
It covers a wide range of topics, domains, products, and resources collected from different channels like:
\n
\n
Microsoft Tech Community (Blog Posts)
\n
Microsoft Azure (Official Docs)
\n
Microsoft Learn
\n
Microsoft Ignite
\n
Azure Friday
\n
YouTube
\n
GitHub
\n
\n
Whether you are new to FinOps or are an experienced professional, this summary is an invaluable resource for staying up-to-date with the latest developments and trends in the field.
The FinOps and Usage Specification (FOCUS™) is an open-source specification that defines clear requirements for cloud vendors to produce consistent cost and usage datasets.
\n
It is founded to normalizes cost and usage datasets across cloud vendors and reduces complexity for FinOps Practitioners.
This article centralizes Azure FinOps information and tools to enabling a better understanding and optimization of cloud costs.
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Thank you for this awesome work. You made my day 🤩
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Great Sharing, Thank You.
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Hi, This is amazing comprehensive material! I will link it from our know-how documentation 🙂
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Thank you for sharing
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I updated the \"What is FinOps?\" section and now it's align with the FinOps Foundation (and the \"FinOps with Azure\" e-book) and I added in addition: The culture, cross-functional, The framework, The principals.
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Dolev_Shor , Thank you for the great information. Same feedback as raju_manthina - I just finished a 5 min explanation in my new company that FinOps does not mean \"Financial Operations\". The reply was \"I got that information from Microsoft\" and he sent me a link to this article. Is it possible to make that update to stay in alignment with other documentation (e.g., \"FinOps with Azure e-book)? I know it's minor, but it does create confusion when talking with stakeholders. Thank you!
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This guide is very comprehensive. Thank you for your contribution.
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How can we utilize this as a training tool? Will it be plagiarism if we were to create slide decks using the content? What labs could we use ie: to cover the data sections Azure Synapse, Azure SQL Database, SQL Managed Instance, Azure Database for MySQL, Azure Cosmos DB and Stream Analytics?
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Hi Dolev_Shor Thank you for this great work. While I am going through it fully, I have a quick observation on the below section. just FYI.What is FinOps?
FinOps (Financial Operations) is a discipline that focuses on optimizing and managing the financial aspects of cloud computing.
FinOps.Org has this statement..
\"It is sometimes incorrectly referred to “Cloud Financial Operations” but that term is falling out of favor due to its ambiguity with the more traditional “Financial Operations” role that exists in Finance.\"
And It also states
\"FinOps is a portmanteau of “Finance” and “DevOps”, stressing the communications and collaboration between business and engineering teams.\"
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Microsoft
