FinOps and Cloud Economics

FinOps is the intersection of finance and DevOps. It establishes processes to manage variable cloud costs on a usage basis and assigns financial responsibility for resource consumption to each team.

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Core concept

The FinOps cycle consists of three phases: Inform (transparency through tagging), Optimise (cost reduction through right-sizing), and Operate (establishing a cost-aware culture).

Application

• Unit Economics: Measuring cloud costs per business transaction (e.g. per order).
• Tagging Policy: Mandatory labelling of all cloud resources for precise cost attribution.
• Anomaly Detection: Automated alerts for unusual cost increases.

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Related topics

• Technology: FinOps, the cost control for FinOps and Cloud Economics.
• Strategy: SAM and FinOps, the cost and licence discipline behind FinOps and Cloud Economics.
• Methods, the methods section that frames FinOps and Cloud Economics.