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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.
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.