1 Introduction to FinOps

 

This chapter covers

  • The shift from traditional IT infrastructure to cloud computing
  • Understanding the hidden costs and challenges of cloud adoption
  • Introduction to FinOps: its core principles and benefits
  • Key differences between FinOps and traditional cloud cost management
  • Building a FinOps culture: challenges and strategies
  • Practical approaches to implementing FinOps in an organization

1.1 Cloud Cost Struggles: Real Stories

Cloud providers have completely changed how businesses build their applications. Instead of owning and managing their own servers, companies now rent resources from cloud providers like Amazon Web Services, Google Cloud, and Microsoft Azure. This new way of working has brought great flexibility and speed, but it has also introduced unexpected challenges, especially when it comes to managing costs. Many businesses, big and small, are caught off guard by how quickly cloud expenses can go out of control.

This book aims to help you understand and address these challenges. It introduces FinOps, a practical approach to managing cloud costs effectively by bringing together engineering, finance, and business teams. The goal is simple: to help companies make better decisions about cloud spending and use their resources more wisely. FinOps is not just about saving money; it’s about turning cloud costs into a tool for business growth.

1.1.1 A tech start-up backfires on backers

1.1.2 Expanding platform, expanding cloud costs

1.1.3 Outdated financial practices lead to financial headaches

1.2 The Cloud Revolution

1.2.1 Amazon S3: Unlimited Storage

1.2.2 Amazon EC2: On-Demand Computing

1.3 The Hidden Costs of Cloud

1.4 What’s FinOps?

1.5 FinOps vs. Cloud Cost Management

1.6 Embracing the FinOps Journey

1.6.1 The Cultural Shift Toward FinOps

1.6.2 Overcoming Common Challenges

1.6.3 When Not to Adopt FinOps

1.7 Summary