Title

AWS re:Invent 2023 - FinOps and GreenOps successes on AWS: A customer story (COP217)

Summary

• Michel Zittmann, Cloud Financial Management Practice Lead at Xebia, discusses FinOps (financial accountability in the cloud) and GreenOps (environmental accountability).
• Xebia is an IT consultancy and software development firm focused on digital transformation based on four core values and aims to be an authority in their fields, including AWS.
• Cloud operations (CloudOps) encompass DevOps, SecOps, FinOps, and GreenOps, with FinOps bringing financial accountability to variable cloud costs and GreenOps focusing on environmental impact.
• FinOps requires strategy, knowledge, governance, and operational processes, while GreenOps aims to increase awareness and action on greenhouse gas emissions.
• Xebia developed a "flywheel" concept where awareness drives accountability, leading to action and efficiency, not just cost reduction.
• They created a sustainability dashboard using AWS QuickSight and the Cost and Usage Report (CUR) to provide granular data on emissions, enabling actionable insights.
• The success story of Vacum Retail Group is shared, highlighting their journey to cloud optimization, cost visibility, and operational efficiency using AWS services and Xebia's partnership.
• Vacum Retail Group achieved a 27% savings in cloud costs, significant reductions in storage and monitoring costs, and cultural change towards cost and environmental efficiency.
• The key takeaways are the importance of visibility, efficiency over cost reduction, accountability, cultural change, and the synergy between FinOps and GreenOps.

Insights

• FinOps and GreenOps Synergy: The talk emphasizes the close relationship between financial and environmental accountability, suggesting that organizations practicing FinOps should also consider GreenOps due to their common goals and methodologies.
• Cultural Change and Gamification: The success story of Vacum Retail Group illustrates how making costs and optimizations visible to teams can lead to a cultural shift. By gamifying cost optimization, teams become more engaged and celebrate their successes, which drives further improvements.
• Visibility and Accountability: The importance of visibility in both costs and emissions is highlighted as a critical factor for enabling change. When individuals have the data they need and the authority to act, they are more likely to take responsibility and drive improvements.
• Efficiency as a Metric: The talk clarifies that the goal is not merely to reduce costs but to improve efficiency. This shift in focus from cost-cutting to efficiency can lead to more sustainable and value-driven decisions.
• Practical Tools and Strategies: The use of AWS Native Services, partner tools like CloudHealth, and automation (e.g., Slack integrations) are practical strategies that can help organizations monitor, manage, and optimize their cloud operations effectively.
• Long-term Commitment: The journey to optimizing cloud operations is long-term and requires continuous effort. The case study shows that significant savings and improvements are possible with persistent focus and strategic partnerships.
• Regulatory Awareness: GreenOps is becoming increasingly important due to emerging regulations in Europe and the US, which mandate organizations to report on environmental impact. This creates a need for tools and practices that provide visibility into emissions and sustainability efforts.