Amazon Web Services (AWS)

Understanding AWS in the Context of FinOps Amazon Web Services (AWS) stands as a dominant player in the cloud industry. For many businesses leveraging the cloud, understanding AWS cost structures and optimization is pivotal in FinOps strategy. What is AWS? AWS, or Amazon Web Services, is a subsidiary of Amazon providing on-demand cloud computing platforms…

Amortized Costs

Understanding Amortized Costs in FinOps In financial and cloud management scenarios, the term ‘amortized costs’ plays a pivotal role. While traditionally used in finance to describe how loans or other assets diminish over time, in the cloud sphere, it’s about understanding costs spread over a usage period. Amortization in Traditional Finance Amortization typically refers to…

Chargeback

Chargeback in FinOps In the world of FinOps, the practice of chargeback stands as a cornerstone for transparent and accountable cloud cost management. As organizations strive for cost visibility and accurate allocation, understanding chargeback becomes paramount. What is Chargeback? In FinOps, chargeback refers to the practice of attributing cloud costs back to the specific departments,…

CI/CD

CI/CD in the Context of FinOps Continuous Integration and Continuous Deployment/Delivery, collectively known as CI/CD, form the backbone of modern software development practices. As developers aim for rapid iterations and releases, CI/CD pipelines become essential. When looking at FinOps, understanding how these pipelines influence and drive cloud costs is crucial. Basics of CI/CD At its…

Cloud Computing

Cloud Computing: on-demand delivery of IT resources Cloud computing has revolutionized the way businesses operate, offering a flexible and scalable environment for hosting applications, data storage, and more. What is Cloud Computing? At its core, cloud computing refers to the delivery of various services over the internet, such as storage, databases, servers, networking, software, and…

Cloud Service Provider (CSP)

Origins of CSPs As the internet evolved and businesses sought more efficient ways to manage IT resources, the concept of ‘cloud computing’ emerged. With the growing demand for scalable, flexible, and cost-effective IT solutions, companies began offering specialized services, leading to the birth of Cloud Service Providers. Types of Services Offered by CSPs CSPs typically…

Commitment Usage Discount (CUD)

Origins of CUD As cloud computing grew in popularity and competition among CSPs intensified, providers sought ways to enhance customer loyalty and predictability in their revenue streams. Commitment Usage Discounts emerged as a strategy for Google Cloud to incentivize users to commit to longer-term usage, benefiting both the user, through cost savings, and the provider,…

Cost and Usage Reports (CUR)

Origins of CUR As cloud adoption grew, organizations faced the challenge of managing and understanding their cloud expenses. With multiple services, regions, and potentially multiple accounts involved, there was a need for a granular and comprehensive report. Recognizing this, Cloud Service Providers introduced Cost and Usage Reports to help customers navigate and analyze their cloud…

Cost Anomalies

Cost Anomalies in FinOps: Unexpected Costs Within the realm of FinOps, cost anomalies can be a significant concern. These unexpected cost surges or decreases can impact financial forecasting and budgeting, and create friction between different teams. What are Cost Anomalies? Cost anomalies refer to unexpected fluctuations in cloud costs that don’t align with regular consumption…

EDP (Enterprise Discount Programs)

Origins of Enterprise Discount Programs Recognizing the purchasing power and needs of large enterprises, AWS introduced EDPs to incentivize bulk buying and reward consistent large-volume transactions. This programs aims to create a win-win: businesses get discounts, and AWS increases sales and foster client loyalty. Key Features of an EDP Core components of EDPs include: Benefits…

Enterprise Agreements

Origins of Enterprise Agreements As large enterprises required vast quantities of software licenses, the need arose for a structured licensing package that catered specifically to their needs. Enterprise Agreements emerged as a solution, simplifying license management and providing financial benefits. Key Components of an EA Features of an EA include: Benefits of an EA Advantages…