FinOps framework in ADEO
As any FinOps guys already know : the well FinOps framework is composed by 3 phases.
📈 The INFORM phase: related to identifying data sources for cloud cost, consumptions and resources consumers. This phase is super important to have the fundamentals for better analysis, reporting and forecasting trends. Accurate allocation of cloud spend based on tags, accounts, or business rules enable accurate reporting. Business and financial teams will then be able to correctly drive their budget, investments, forecasts, and contract negotiations in renewal periods. Also, it could help to make data-driven decision in migrating products to the cloud by using the corresponding move to cloud strategy which is ROI relevant.
It also helps to proactively monitor any unexpectedly overconsumption and avoid surprises.
This one could also be completed by carbon costs, and make greenops decisions. 🌿
💵 The OPTIMIZE phase: this part lets you identify opportunities to optimize cost of cloud consumption. Not only by reducing basically the consumption, but also by renegociating unit prices corresponding to the volume and engagement you can make. Lots of people are only looking at reducing their consumption volume, sometimes by impacting their SLA or taking risks on their production environments. It’s not the only leverage offered to you. Keep in mind the public pricing of any provider can be challenged if you can make engagement on some volumes over the time. Anyway, you can still engage effort on many topics, like rightsizing/underutilized cloud resources, taking advantage of modern architectures, managing workloads and automating the elimination of waste from unused resources. This phase is super efficient if there is collaboration across teams in your organization. To resume, optimize phase is a combination of Rates x Usage x Collaboration. 🤝
⚙️ The OPERATE phase: I assume to call this one the « CI/CD » phase of FinOps. It’s basically a continuous improvement of practices and usages.
This phase helps you improve or implement your organizational processes to operate FinOps using the data and capabilities developed in the Inform and Optimize phase. But not only. It also pushs your limit to FinOps by design starting the conception phase of your development process, establish cloud governance policies to monitor compliance and empower your collaborators through the development of training programs and best practices guidelines.
I guess you understand that this phase builds iteratively the culture of accountability where engineering, finance, and business teams collaborate.
They collaborate continuously based on the data generated in the Inform phase, selecting the best opportunities identified in the Optimize phase and using a bias for action developed throughout the organization. 🫵
In ADEO Group, we have a centralized governance for FinOps, offering a central tool to the Group, but with a community of local relays in business unit to help on animation of FinOps topics. 📍
The INFORM phase has been done in ADEO Group by creating a model where we collect all consumptions and match them with the billings received from our providers, and display the effective raw costs and consumption to our consumers in Business Units. This tool is global and used by all users in all business units to make sure we all read and exploit data the same way with the same rules. 🎯
The OPTIMIZE phase was also implemented by aggregating, in a central place, the multiples recommendations we can received from any of our providers, as well as continuously enriching this data with custom recommendations, based on our best practices and internal usages.
The OPERATE phase is a daily habits where our leaders think about FinOps daily… You read correctly… on a daily basis… I think it’s probably the best success in our team story 💪🏻
