| |DECEMBER - JANUARY9CIOReviewOptimization BasicsWhen looking across enterprise cloud programs, there is often a broad range of cost- and performance-optimization opportunities. Here are some of the ways we've been able to cut our cloud bills by 20 percent:· Provision only what you need and leverage auto-scaling· Consider smaller sizing in non-production environments· Shut resources down when they are not in use· Leverage storage classes to take advantage of lower prices for less frequently accessed data· Revisit instance types: the public cloud providers are constantly rolling out new instances that may be cheaper and offer more value (e.g., memory, vCPU, etc.)Cloud migration is not without its challenges ­ particularly with keeping expenses in check. According to McKinsey, many companies see their cloud spend grow as much as 20 to 30 percent each year· Delete and remove resources that are no longer needed; even if you stop resources, you still may be incurring storage charges· Leverage open source if possible· Make sure to understand software license implications for running in the cloud compared to on-premise· Leverage discount pricing options for commitments like Reservations and Savings PlansOnce a baseline level of optimization is achieved, the FinOps team can continuously scan for new cost-reduction opportunities and track the results of optimization efforts.Engineering EmpowermentWith a global technology team of 4,000, our engineers play a critical role in managing cloud costs. To maximize exposure to cost and optimization opportunities, we embedded information right into the engineering experience. Our engineers see their monthly spending and trend along with right-sizing recommendations when they log into their developer portal. This has resulted in improved cost management and the adoption of right-sizing recommendations.Ongoing education for our engineering teams has been important for understanding the public cloud variable expense model and how they directly impact costs. With unlimited resources and capacity available at the click of a button, they are the front line to ensuring cloud cost optimization. We've seen strong engagement with continuous lunch and learn training sessions along with running optimization contests. This gamification has enabled enriched education as teams compete to complete optimization tasks in pursuit of prizes and friendly competition.Automate, Automate, AutomateAutomation is the final lever for scaling your FinOps operation and facilitating quick action to address cloud waste, while driving value maximization. A few key areas we've automated: · Sending monthly financial statements to our application owners, which include usage trends and optimization opportunities. · Anomaly alerting communications to get these out quickly to address runaway spend· Stopping idle resources · Deleting any unused/old storageMany organizations have been on their cloud migration journeys for years with the hope of increased flexibility and performance, and with the goal of realizing cost benefits along the way. The current challenging economic environment puts the cost at the forefront. But, through a few steps, companies can optimize spending, cut costs, and build business value.
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