finops

FinOps has three iterative phases: Inform, Optimize, and Operate. In the first part of this blog series, we discussed how the “Inform” phase is all about achieving visibility for resource allocation and creating accountability over the organization’s cloud spending. 

In this article, we will focus on the “Optimize” phase, and explore how it impacts your FinOps journey and the entire cloud spend optimization plans.

The “Optimize” Phase

The “Optimize” stage of the FinOps cycle is about enabling teams to discover and execute the best optimization configurations based on two things: data, and goals. With the financial data they have collected and analyzed, teams find it far easier and quicker to improve workflow.

At this point in the FinOps journey, you now have total visibility into your cloud spend and the purpose of that spend. This makes it easier for you to create the frameworks for all IT infrastructure processes. 

Being able to track your cloud spend allows you to explore and unearth opportunities for improvement. With all the data gathered and analyzed from the “Inform” phase, your team can deploy systems designed to detect anomalies, target underutilized services for rightsizing, find opportunities for rate optimization, and perform comparisons of workload costs.

Optimization actions can include enhancing reserved instance coverage, rightsizing their resources to match requirements, or automatically turning off wasteful processes. FinOps teams can build viable financial models along with necessary charts and items. This results in their capability to predict what they need, and purchase the right amount of products in advance.

A Two-Part Process

The “Optimize” phase of FinOps hinges on two things:

  • Real-Time Decision Making
  • Prediction, Planning, and Purchase Capacity

Visibility into your infrastructure’s processes, application performance, and requirements, as well as access to real-time data helps, teams remove underutilized services the moment they are identified. They can also see and understand if the resources are either under or over-provisioned, allowing them to make quick decisions to ensure all processes are optimized and well-provided. Teams can also decide in real-time when to automate resources and establish the criteria that triggers the automation.

Aside from making optimization decisions in real-time, teams have all the data they need to accurately rightsize all services and instances. This makes predicting resources easy. But on top of that, teams are able to compare prices. This allows them to shop around for the best deals. The buying process for reserved instances becomes centralized as well.

Check out Opsani’s extensive FinOps Guide to learn much more about FinOps.