Title

AWS re:Invent 2022 - Metrics that matter: Navigate financial uncertainty w/actionable KPIs (PRT255)

Summary

The session focused on navigating financial uncertainty using actionable FinOps KPIs.
Speakers included Ashley Ramatko from the FinOps Foundation and Vic Selaluja from Cigna.
Economic challenges such as inflation, supply chain issues, and geopolitical events were discussed.
Cloud as a cost-saving tool was emphasized, with its immediate impact on savings and efficiency.
The importance of FinOps (financial operations) in cloud financial management was highlighted.
Key metrics discussed included cost efficiency and optimization, cloud program TCO (Total Cost of Ownership), and unit costing/unit economics.
Real-world use cases and tips were shared by the speakers.
The FinOps Foundation framework and its principles were introduced.
The session concluded with resources for further learning in FinOps and cloud cost management.

FinOps as a Cultural Shift: FinOps is not just about tools and processes but also about a cultural shift within organizations to understand and maximize cloud benefits.
Economic Uncertainty Drives Innovation: Economic challenges can lead to increased scrutiny on budgets, but they also present opportunities for innovation, particularly in cost optimization and spend management.
Cloud as a Competitive Advantage: The cloud's ability to quickly realize cost savings and its pricing and usage levers are seen as a competitive advantage for organizations.
Importance of KPIs: Key Performance Indicators (KPIs) are crucial for tracking and optimizing cloud spend, with a focus on coverage and utilization of commitment programs like RIs (Reserved Instances) and Savings Plans.
Total Cost of Ownership (TCO): Understanding the TCO of cloud programs is vital, including direct costs from cloud providers and indirect costs such as tools, third-party applications, and labor.
Unit Costing and Economics: Unit costing allows organizations to tie cloud spend to business value, such as cost per transaction or cost per customer, and can contribute to profitability analysis.
Resources and Community: The session highlighted the importance of resources like the FinOps Foundation, the Cloud FinOps book, and various podcasts and webinars for ongoing learning and community engagement.