A Cloud Service Provider (CSP) is a company that offers cloud computing services, including infrastructure, platforms, and software, delivered over the Internet. CSPs play a crucial role in modern IT infrastructure by providing scalable, on-demand resources that organizations can leverage without investing in physical hardware. In FinOps, CSPs are central to cost management and optimization…
Cloud computing is a technology model that enables on-demand access to a shared pool of configurable computing resources over the internet. These resources include networks, servers, storage, applications, and services, which can be rapidly provisioned and released with minimal management effort or service provider interaction. In the context of FinOps, cloud computing plays a crucial…
A Cloud Center of Excellence (CCoE) is an organization’s centralized team or function that establishes and maintains cloud governance, best practices, and standards. In FinOps, a CCoE is instrumental in establishing and enforcing cost management policies, providing visibility into cloud spending, and driving continuous optimization efforts. By centralizing cloud expertise and governance, a CCoE enables…
Continuous Integration and Continuous Delivery/Deployment (CI/CD) is a set of software development practices that automate the process of building, testing, and deploying code changes. In the context of FinOps, CI/CD plays a crucial role in optimizing software delivery while effectively managing cloud costs. This integration of development practices with financial oversight ensures that organizations can…
Chargeback, in the context of FinOps, refers to the process of attributing cloud infrastructure costs to the specific business units, departments, or projects that incur them. This practice is fundamental to cloud cost management as it provides transparency and accountability for cloud usage across an organization. The significance of chargeback in cloud cost management cannot…
Amazon Web Services (AWS) plays a crucial role in the cloud computing landscape, offering organizations the ability to replace upfront capital infrastructure expenses with low variable costs that scale with their business. Its global reach and extensive service portfolio make it a key player in digital transformation strategies for companies of all sizes. In the…
Cost anomalies are unexpected or unusual patterns in cloud spending that deviate from normal or predicted usage. In FinOps, identifying and addressing these anomalies is crucial for maintaining efficient cloud cost management. Cost anomalies can significantly impact an organization’s cloud spending, potentially leading to budget overruns and inefficient resource utilization. Types of Cost Anomalies Understanding…
Amortized cost is a financial accounting method that spreads the expense of an asset over its expected useful life. In the context of FinOps and cloud computing, it’s a crucial concept for accurately allocating and understanding costs over time. Unlike other cost allocation methods, such as straight-line depreciation or accelerated depreciation, amortized cost takes into…