Title

AWS re:Invent 2023 - Save Money & Increase Value Using the CFM Capability Assessment (GDS102)

Summary

Nilanjan Basu, an AWS Cloud Economic Specialist, introduced the session on Cloud Financial Management (CFM) Capability Assessment.
The CFM framework consists of four pillars: see, save, plan, and run, aimed at improving FinOps maturity.
Over 450 organizations have used the CFM Capability Assessment to drive cost efficiencies and increase value.
TUI Group and Adavinta were highlighted as examples of companies that benefited from the CFM Capability Assessment.
The CFM Capability Assessment is a three-step approach: inputs and observations, evaluation and results, and recommendations and action plan.
High-maturity organizations in CFM tend to be more cost-efficient and derive more business value from their cloud usage.
Christian Martini from MercadoLibre shared their journey and how they leveraged the CFM Capability Assessment to optimize their cloud financial management.
Himanshu Kapoor discussed foundational CFM capabilities and how to build a roadmap to meet specific business objectives.
The session concluded with an encouragement to start the CFM journey and leverage the CFM Capability Assessment to create a tailored roadmap.

CFM is an evolving discipline, and most organizations are at an intermediate stage, indicating room for growth and improvement.
High-maturity organizations use optimized storage and managed data solutions more effectively, leading to cost savings and increased revenue.
MercadoLibre's use of the CFM Capability Assessment highlights the importance of visibility, cost allocation, and optimization tools in managing cloud costs.
Foundational CFM capabilities, such as executive buy-in, dedicated CFM owner, cross-functional partnerships, robust reporting mechanisms, cost allocation, and efficient pricing models, are crucial for a successful CFM program.
Forecasting cloud spend accurately is a common challenge, and a combination of trend-based and demand driver-based forecasting can enhance the process.
The CFM Capability Assessment is a valuable tool for organizations to benchmark their practices, identify areas for improvement, and create a tailored action plan for CFM maturity.