...how to survive your cloud bill
My name is Kuba Holak
Engineering Lead @ Nordcloud, an IBM Company
AWS Community Builder
FinOps certified practitioner
🐦 @kubaholak
My name is Kuba Holak
Engineering Lead @ Nordcloud, an IBM Company
AWS Community Builder
FinOps certified practitioner
🐦 @kubaholak
High cloud bill is always a bad thing
Mature DevOps is possible without financial accoutability
Cloud Economy 101
IT in DCs
CapEx
IT in Cloud
OpEx
DevOps
~$400B
by 2022
Cloud Spend
Capital Expenditures (CapEx) are investments made by an organization for long-term benefits in the future. Computers, servers, and other hardware needed for on-premises data centers are all examples of CapEx.
Operational Expenditures (OpEx) are the ongoing costs related to day-to-day operations. A subscription fee for cloud services is considered OpEx—the cloud provider is making the infrastructure investment upfront, and you only pay for the resources you need as you need them.
DevOps & Cloud have broken traditional procurement...
...engineers are making money decisions in the real-time
Steven
Steven used to have everything under control...
...but DevOps and Public Cloud changed the game
How can Steven change the current state?
Traditional procurement
Engineers need servers
⇒ they create buying request
⇒ finance approves
⇒ servers are bought every 1 or 3 years
Engineers are requesters
Finance are approvers
Spend is predictable and static, but long procurement cycles kill the agility and is prone to mistakes
Cloud spend model
Engineers write code =>
deploy and create infra daily =>
generate cost
No Finance Approval
No central place to control the costs, short cycles, cost structure changes dynamically
DevOps maturity assumes self-service
Self-service DevOps is a way to enable developers to deploy applications on demand all by themselves
DevOps maturity assumes self-service
Cloud bill grows, bill shock ⇒
Figure out AWS Bill ⇒
FAIL ⇒
Kill the direct access ⇒
R.I.P DevOps
DevOps maturity assumes self-service
“All companies are software companies”
The CEO of Microsoft, Satya Nadella
Agile & DevOps are proven and efficient approaches to software engineering, but those are not only for your "IT department" - companies are agile, not single teams.
If a single team is adopting DevOps in a non-agile friendly company - will most probably fail.
You can try FinOps
...not about saving MONEY
VALUE is what matters the most
Reservations, discounts and commitments
In 2021, companies will waste over $17 billion in cloud spend on idle and excess resources, according to DevOps.com. Many organizations are finding that as much as 40% of their cloud spend is sunken into over-provisioned and unused infrastructure.
Cloud Waste Categories
FinOps maturity
Which teams are driving the costs?
Are they being efficient?
Can you link their costs to unit metrics?
FinOps maturity
Look at what tags are in place and what they are reporting.
Look at coverage gaps.
Consider how to allocate untaggable or shared costs.
FinOps maturity
A spreadsheet to keep your mappings
Cadence-based syncing with your CMDB.
API integration between your FinOps platform and your CMDB.
A FinOps endgame
Unit Economics
(...) Each time your bill goes up, the debate reopens about whether the spend is good or bad. Has the bill increased due to growth in your business? Is it because of the acceleration of cloud migrations? Or has it gone up due to inefficient patterns of usage creeping back into your teams’ habits?
Storment, J. R.; Fuller, Mike. Cloud FinOps . O'Reilly Media.