Title

AWS re:Invent 2022 - Cloud FinOps: Empower real-time decision making (PRT322)

Summary

• Speakers: Lucas Peratori from VMware, J.R. Stormant from the FinOps Foundation, and Josh Bauman from Electronic Arts.
• Main Topic: The focus of the session was on FinOps and the importance of real-time decision-making in cloud cost management.
• Key Points:
  • FinOps is an evolving discipline that is not just about saving money but maximizing value from cloud investments.
  • It is a cultural discipline that requires collaboration between engineering, finance, and business teams.
  • Real-time data and feedback loops are crucial for engineers to make informed daily decisions.
  • The FinOps Foundation plays a key role in advancing the discipline through community, education, and setting standards.
  • The session included discussions on the importance of visibility in cloud usage and costs, the cyclical process of FinOps, and the need for data-driven decision-making.
  • Anomalies in cloud spending, whether increases or decreases, should be detected and addressed quickly.
  • VMware's CloudHealth platform was discussed as a tool for managing cloud costs, detecting anomalies, and optimizing cloud spend.

Insights

• FinOps Maturity: The maturity of FinOps practices varies widely among organizations, and it's common for companies to be at different stages of maturity for different parts of their tech stack.
• Industry Adoption: Financial services have become a leading industry in adopting FinOps practices, possibly due to maturing regulations and increased trust in cloud security.
• Real-time Data: The emphasis on real-time data for decision-making highlights the shift from traditional monthly or quarterly reviews to more dynamic and immediate cost management strategies.
• Cost Allocation: The discussion on cost allocation strategies, such as Josh Bauman's approach at EA to standardize discounts and centralize cost management, reflects a trend towards simplifying cloud cost models for engineers.
• Tooling Evolution: The evolution of tooling, as demonstrated by VMware's ARIA platform, indicates a growing market for sophisticated cloud management solutions that integrate cost, operations, and automation.
• Community and Standards: The role of the FinOps Foundation in fostering a community and developing standards underscores the collaborative nature of the discipline and the value of shared knowledge and best practices.
• Anomaly Detection: The focus on anomaly detection and the ability to distinguish between good and bad anomalies suggest that organizations are looking for more nuanced and proactive approaches to cost management.
• Feedback Loops: The concept of feedback loops, whether through dashboards, alerts, or community interactions, is central to the FinOps methodology and is key to enabling continuous improvement in cloud cost optimization.