Cloud FinOps. Collaborative, Real-Time Cloud Financial Management - Helion
ISBN: 9781492054573
stron: 284, Format: ebook
Data wydania: 2019-12-12
Księgarnia: Helion
Cena książki: 229,00 zł
Despite many uncertainties in cloud computing, one truth is evident: costs will always tend to go up unless you’re actively engaged in the process. Whether you’re new to managing cloud spend or a seasoned pro, this book will clarify the often misunderstood workings of cloud billing fundamentals and provide expert strategies on creating a culture of cloud cost management in your organization.
Drawing on real-world examples of successes and failures of large-scale cloud spenders, this book outlines a road map for building a culture of FinOps in your organization. Beginning with the fundamental concepts required to understand cloud billing concepts, you’ll learn how to enable an efficient and effective FinOps machine.
- Learn how the cloud works when it comes to financial management
- Set up a FinOps team and build a framework for making spend efficiency a priority
- Examine the anatomy of a cloud bill and learn how to manage it
- Get operational recipes for maximizing cloud efficiency
- Understand how to motivate engineering teams to take cost-saving actions
- Explore the FinOps lifecycle: Inform, Optimize, and Operate
- Learn the DNA of a highly functional cloud FinOps culture
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Spis treści
Cloud FinOps. Collaborative, Real-Time Cloud Financial Management eBook -- spis treści
- Preface
- Who Should Read This Book
- About This Book
- What You Need to Know Before Reading On
- FinOps Is Evolving
- Conventions Used in This Book
- OReilly Online Learning
- How to Contact Us
- Acknowledgments
- I. Introducing FinOps
- 1. What Is FinOps?
- The FinOps Heros Journey
- Where Did FinOps Come From?
- The Definition
- Real-Time Reporting (The Prius Effect)
- Core Principles of FinOps
- When Should You Start FinOps?
- Starting with the End in Mind: Unit Economics
- Conclusion
- 2. Why FinOps?
- Use Cloud for the Right Reasons
- The Problem
- The Impact of Not Adopting FinOps
- Conclusion
- 3. Cultural Shift and the FinOps Team
- Who Does FinOps?
- Why a Centralized Team?
- The Role of Each Team in FinOps
- Executives
- FinOps practitioners
- Engineering and operations
- Finance and procurement/sourcing
- A New Way of Working Together
- Where Does Your FinOps Team Sit?
- Understanding Motivations
- Engineers
- Finance People
- Executives
- Procurement and Sourcing People
- FinOps Throughout Your Organization
- Hiring for FinOps
- FinOps Culture in Action
- Conclusion
- Who Does FinOps?
- 4. The Language of FinOps and Cloud
- Defining a Common Lexicon
- Defining the Basic Terms
- Defining Finance Terms for Cloud Professionals
- Abstraction Assists Understanding
- Cloud Language Versus Business Language
- Creating a Babel Fish Between Your DevOps and Finance Teams
- The Need to Educate Both Sides of the House
- Benchmarking and Gamification
- Conclusion
- 5. Anatomy of the Cloud Bill
- Cloud Billing Complexity
- The Basic Format of the Billing Data
- Time, Why Do You Punish Me?
- Sum of the Tiny Parts
- A Brief History of Cloud Billing Data
- The Importance of Hourly Data
- A Month Is Not a Month
- A Dollar Is Not a Dollar
- A Simple Formula for Spending
- Two Levers to Affect Your Bill
- Who Should Avoid Costs and Who Should Reduce Rates?
- Centralizing rate reduction
- Why You Should Decentralize Usage Reduction
- Conclusion
- II. Inform Phase
- 6. The FinOps Lifecycle
- The Six Principles of FinOps
- Teams Need to Collaborate
- Decisions Are Driven by the Business Value of Cloud
- Everyone Takes Ownership of Their Cloud Usage
- FinOps Reports Should Be Accessible and Timely
- A Centralized Team Drives FinOps
- Take Advantage of the Variable Cost Model of the Cloud
- The FinOps Lifecycle
- Inform
- Optimize
- Operate
- Considerations
- Where Do You Start?
- Why to Start at the Beginning
- Conclusion
- The Six Principles of FinOps
- 7. Where Are You?
- Data Is Meaningless Without Context
- Seek First to Understand
- Organizational Work During This Phase
- Transparency and the Feedback Loop
- Benchmarking Team Performance
- Forecast and Budgeting
- The Importance of Managing Teams to Budgets
- What Great Looks Like: Crawl, Walk, Run
- Conclusion
- 8. Allocation: No Dollar Left Behind
- Why Allocation Matters
- Chargeback Versus Showback
- A Combination of Models Fit for Purpose
- The Showback Model in Action
- Chargeback and Showback Considerations
- Spreading Out Shared Costs
- Amortization: Its Accrual World
- Creating Goodwill and Auditability with Accounting
- Going Beyond Cloud with the TBM Taxonomy
- The Spend Panic Tipping Point
- Conclusion
- 9. Tags, Labels, and Accounts, Oh My!
- Cost Allocation Using Tag- and Hierarchy-Based Approaches
- Getting Started with Your Strategy
- Communicate your plan
- Keep it simple
- Formulate your questions
- Comparing the Allocation Options of the Big Three
- Comparing Accounts and Folders Versus Tags and Labels
- Organizing Projects Using Folders in Google Cloud Platform
- Getting Started with Your Strategy
- Tags and Labels: The Most Flexible Allocation Option
- Using Tags for Billing
- Getting Started Early with Tagging
- Deciding When to Set Your Tagging Standard
- Picking the Right Number of Tags
- Working Within Tag/Label Restrictions
- Maintaining Tag Hygiene
- Reporting on Tag Performance
- Getting Teams to Implement Tags
- Conclusion
- Cost Allocation Using Tag- and Hierarchy-Based Approaches
- III. Optimize Phase
- 10. Adjusting to Hit Goals
- Why Do You Set Goals?
- The First Goal Is Good Cost Allocation
- Is Savings the Goal?
- The Iron Triangle: Good, Fast, Cheap
- Hitting Goals with OKRs
- OKR Focus Area #1: Credibility
- OKR Focus Area #2: Sustainability
- OKR Focus Area #3: Control
- Goals as Target Lines
- Detecting Anomalies
- Reducing Spend to Meet Forecast
- Using Less Versus Paying Less
- Conclusion
- 11. Using Less: Usage Optimization
- The Cold Reality of Cloud Consumption
- Where Does Waste Come From?
- Usage Reduction by Removing/Moving
- Usage Reduction by Resizing (Rightsizing)
- Common Rightsizing Mistakes
- Relying on recommendations that dont account for spikes in utilization
- Failing to rightsize beyond compute
- Not addressing your resource shape
- Not simulating performance before rightsizing
- Hesitating due to reserved instance uncertainty
- Going Beyond EC2: Tips to Control Block Storage Costs
- Get rid of orphaned volumes
- Focus on zero throughput or zero IOPS
- Make managing your block storage costs a priority
- Reduce the number of higher IOPS volumes
- Take advantage of elastic volumes
- Common Rightsizing Mistakes
- Usage Reduction by Redesigning
- Scaling
- Scheduled Operations
- Effects on Reserved Instances
- Benefit Versus Effort
- Serverless Computing
- Not All Waste Is Waste
- Crawl, Walk, Run
- Advanced Workflow: Automated Opt-Out Rightsizing
- Tracking Savings
- Conclusion
- 12. Paying Less: Rate Optimization
- Compute Pricing
- On-Demand
- Spot/Preemptible/Low-Priority Resource Usage
- Reservations
- Storage Pricing
- Volume Discounts
- Usage-Based
- Time-Based
- Negotiated Rates
- Custom Pricing Agreements
- Seller Private Offers
- BYOL Considerations
- Conclusion
- Compute Pricing
- 13. Paying Less with Reserved Instances and Committed Use Discounts
- Introduction to Reservations
- Reserved/Committed Usage
- Instance Size Flexibility
- Conversions and Cancellations
- Overview of Usage Commitments Offered by the Big Three
- Amazon Web Services
- What Does a Reserved Instance Provide?
- Parameters of an AWS Reserved Instance
- Linked Account Affinity
- Standard Versus Convertible Reserved Instances
- Instance Size Flexibility
- Savings Plans
- Google Cloud Platform
- Not Paying for VM Instance Hours
- Billing and Sharing CUDs
- Relationships Between Organizations and Billing Accounts
- Applying CUDs Within a Project
- Microsoft Azure
- Instance Size Flexibility
- Conclusion
- 14. RI and CUD Strategies
- Common Mistakes
- Steps to Building an RI Strategy
- Learn the Fundamentals
- Components of the RI break-even point
- The RI waterline
- Build a Repeatable RI Process
- Purchase Regularly and Often
- Measure and Iterate
- Allocate RI Costs Appropriately
- Learn the Fundamentals
- The Centralized Reservation Model
- Timing Your Reservations
- When to Rightsize Versus Reserve
- Building Your Strategy
- Level of Commitment to Your Cloud
- The Cost of Capital
- The Red Zone/Green Zone Approach
- Purchase Approvals
- Who Pays for Reservations?
- Strategy Tips
- Conclusion
- IV. Operate Phase
- 15. Aligning Teams to Business Goals
- Achieving Goals
- Processes
- Onboarding
- Responsibility
- Visibility
- Action
- How Do Responsibilities Help Culture?
- Carrot Versus Stick Approach
- Working with Bad Citizens
- Putting Operate into Action
- Conclusion
- 16. Metric-Driven Cost Optimization
- Core Principles
- Automated Measurement
- Targets
- Achievable Goals
- Reserved coverage
- Savings metrics that make sense for all
- Combining metrics
- Data Driven
- Metric-Driven Versus Cadence-Driven Processes
- Setting Targets
- Taking Action
- Conclusion
- Core Principles
- 17. Automating Cost Management
- Whats the Goal of Automation?
- What Is the Outcome You Want to Achieve?
- Automated Versus Manual Tasks
- Automation Tools
- Costs
- Other Considerations
- Tooling Deployment Options
- Automation Working Together
- Integration
- Automation Conflict
- Safety and Security
- How to Start
- What to Automate
- Tag Governance
- Scheduled Resource Start/Stop
- Usage Reduction
- Conclusion
- Whats the Goal of Automation?
- 18. FinOps for the Container World
- Containers 101
- The Move to Container Orchestration
- The Container FinOps Lifecycle
- Container Inform Phase
- Cost Allocation
- Container Proportions
- Custom container proportions
- Container proportions in GCP
- Tags, Labels, and Namespaces
- Container Optimize Phase
- Cluster Placement
- Container Usage Optimization
- Idle resources for containers
- Rightsizing clusters and containers
- Container classes within Kubernetes
- Server Instance Rate Optimization
- Container Operate Phase
- Serverless Containers
- Conclusion
- 19. Managing to Unit Economics: FinOps Nirvana
- Metrics as the Foundation of Unit Economics
- Coming Back to the Iron Triangle
- Activity-Based Costing
- Whats Missing from the Equation?
- Conclusion
- Whats Next?
- Afterword on What to Prioritize (from J.R.)
- Index