Establish ownership of cost optimization

Establishing ownership of cost optimization is critical for fostering a culture of financial accountability and awareness across the organization. This ensures that various departments understand their roles in managing and optimizing cloud costs effectively while aligning with business objectives.

Best Practices

• Cross-Functional Team Formation: Create a dedicated team such as a Cloud Business Office or Cloud Center of Excellence to oversee cost management strategies. This team should include representatives from finance, technology, and business units to ensure diverse perspectives and comprehensive cost optimization initiatives.

Supporting Questions

• Is there a defined team responsible for cloud cost management and optimization?

Roles and Responsibilities

• FinOps Team: A FinOps team is tasked with integrating financial accountability into the cloud’s operational model by bridging the gap between IT, finance, and business goals.

Artifacts

• Cost Optimization Roadmap: A structured document that outlines the strategic approach for optimizing cloud costs, including timelines, milestones, and key performance indicators.

Cloud Services

AWS

• AWS Cost Explorer: AWS Cost Explorer enables users to visualize, understand, and manage their AWS costs and usage over time, helping to inform and assess cost optimization efforts.
• AWS Budgets: AWS Budgets allows users to set cost and usage budgets that alert them when they exceed, which aids in staying within budget and managing financial performance.

Question: How do you implement cloud financial management?
Pillar: Cost Optimization (Code: COST)