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FinOps Policies

  • AI

    OpenAI Service – Consider TPM Limits

    Ensure that the OpenAI Tokens-Per-Minute (TPM) limits meet your organization’s specific requirements based on the model and SKU being used. For example, ‘gpt-4:Standard:10’ means that GPT-4 models using the Standard SKU should use a value of less than or equal to 10K TPM. Managing TPM limits appropriately helps control costs, prevent unexpected billing spikes, and…

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  • AI

    OpenAI Service – Consider Using Preferred SKUs

    Ensure that OpenAI deployment SKUs meet your organization’s specific requirements. These can be based on your organization’s data processing location compliance or usage (e.g., Standard for variable workloads, ProvisionedManaged for high volume). When deploying OpenAI services in Azure, selecting the appropriate SKU (Stock Keeping Unit) is a critical decision that impacts cost efficiency, performance, and…

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  • AI

    OpenAI Service – Consider Using Latest Models

    OpenAI frequently releases newer models that provide improved performance, capabilities, and cost efficiency. Organizations using older models may be overspending while receiving inferior results. By systematically adopting the latest appropriate models, your organization can realize significant cost savings while maintaining or improving capabilities. This policy ensures your organization leverages the most cost-efficient OpenAI models available,…

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  • Azure | Object Storage

    Azure Storage Accounts – Consider Upgrading Account Kind to Storage V2

    Upgrade legacy Azure storage accounts to general-purpose v2 (Storage V2) to optimize storage costs, improve performance, and access advanced features. Why Upgrade Storage Account Types? Azure recommends general-purpose v2 accounts for most storage scenarios. These accounts provide significant advantages over older storage account types, offering more flexibility, cost-effectiveness, and advanced management capabilities. Key Benefits of…

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  • Azure | Object Storage

    Azure Storage Accounts – Consider Lifecycle Policy for Blob Storage

    Azure storage accounts can generate significant unnecessary costs when blob storage isn’t managed efficiently. A lifecycle policy automates data management, transitioning blobs between access tiers or deleting unused data to optimize storage expenses and improve overall cloud infrastructure efficiency. Why This Policy Matters Effective blob storage management is crucial for controlling cloud infrastructure costs. Without…

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  • Azure | Compute

    Azure Virtual Machines – Consider Using a Preferred Instance Type

    Optimize Azure VM costs by standardizing and selecting the most cost-effective instance types that meet your organization’s performance and budget requirements. Why This Policy Matters Organizations often overspend on cloud infrastructure by selecting virtual machine types without careful consideration. Azure offers numerous VM series and sizes, each with different pricing, performance characteristics, and optimization potential….

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  • Azure | Compute

    Azure Virtual Machines – Optimize Windows VM Costs with Azure Hybrid Benefit

    Azure Hybrid Benefit provides a strategic opportunity for organizations to significantly reduce their Windows virtual machine costs by leveraging existing on-premises licensing investments. This cost-saving mechanism allows businesses to apply their Microsoft Software Assurance or subscription licenses directly to Azure Windows VM deployments. Why This Policy Matters Azure Hybrid Benefit is crucial for organizations looking…

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  • Azure | Compute

    Azure Virtual Machines – Upgrading E Series Machines to Ev5

    Azure offers several improvements with the latest Ev5 series virtual machines, providing better price-performance and enhanced capabilities compared to previous generation E series machines. This policy recommends upgrading to newer Ev5, Edv5, Esv5, or Edsv5 series VMs to optimize cloud infrastructure costs and performance. Why Upgrading Matters The Ev5 series virtual machines deliver significant advantages:…

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  • AWS | Compute

    Amazon RDS – Consider setting Aurora Serverless v2 clusters minimum capacity to 0.5 in non-production projects

    Aurora Serverless v2 provides flexible scaling for Amazon RDS databases, with the ability to optimize costs by adjusting minimum capacity settings. By strategically configuring cluster capacity, organizations can significantly reduce unnecessary cloud spending, especially in non-production environments. Why This Policy Matters Aurora Serverless v2 allows for granular capacity management, which directly impacts cost efficiency: Cost…

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  • Azure | Compute

    Azure Virtual Machines – Upgrade DC Series Machines to DCv3

    Optimize Azure virtual machine performance and cost-efficiency by upgrading from older DC series machines to the newer DCv3 series, which offer improved processor technology and better resource allocation. Why This Policy Matters Azure’s DCv3 series represents a significant upgrade path for confidential computing workloads. The newer series provides: Cost Reduction Strategies Performance Comparison Consider this…

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  • Azure | Compute

    Azure Virtual Machines – Consider Upgrading F-Series Machines to Fsv2

    When managing Azure Virtual Machines, upgrading from F-series to Fsv2-series can provide significant cost savings and performance improvements. This policy recommends transitioning to newer Fsv2 instances to optimize your cloud infrastructure spending. Why This Policy Matters The Fsv2-series offers substantial benefits over the original F-series: Detailed Cost Analysis Comparative Cost Example Implementation Guide Infrastructure as…

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  • AWS | Compute

    Amazon VPC – Consider Avoiding Multiple VPC Endpoints for the Same Service

    VPC endpoints can quickly become a source of unnecessary cloud spending if not managed carefully. Each VPC endpoint incurs approximately $80 in annual costs, making it crucial to optimize your endpoint strategy. Why This Policy Matters VPC endpoints provide private connectivity between your VPC and supported AWS services without requiring an internet gateway, NAT device,…

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