An Approach to Getting the Full Value from Your Cloud Investment

The Evolution Towards FinOps?

?

Operating in the cloud requires continuous adjustments to maintain efficiency and control. Without careful management, cloud operations can quickly become inefficient. This is why a focus on FinOps is crucial.?

??

FinOps, or Financial Operations,?is a collaborative approach that empowers organizations to effectively manage their cloud costs. By combining financial expertise, technology knowledge, and business acumen, FinOps provides a structured framework for:?

• Optimizing Resource Utilization: ? Identifying and addressing instances of overprovisioning or underutilization.?

• Improving Decision-Making: ? Leveraging data-driven insights to allocate resources effectively and make informed strategic choices.?

• Enhancing Visibility and Control: ? Gaining real-time visibility into cloud spending and allocating costs accurately.?

• Mitigating Risks: ? Preventing unexpected cost overruns and ensuring compliance with regulations.?

• Increasing Efficiency and Innovation: ? Focusing on delivering value and driving innovation by optimizing cloud costs.?

The shift in financial control from procurement to cost control in cloud management reflects a significant evolution in how organizations approach their cloud infrastructure.??

Initially, the primary focus was on acquiring cloud resources through procurement processes, to ensure availability and meet?immediate needs.??

However, as cloud adoption grew and cloud costs escalated, organizations recognized the need for a more strategic and proactive approach to managing their cloud expenses.?

Procurement to Optimization:?

• Reactive vs. Proactive: While procurement focused on acquiring resources, cost control involves proactively optimizing resource utilization and identifying opportunities for cost reduction.?

• Short-term vs. Long-term: Procurement often addressed immediate needs, whereas cost control considers the long-term implications of cloud spending and aligns it with business objectives.?

Cost Awareness and Tracking:?

• Visibility: Organizations have become more conscious of their cloud spending and have implemented tools to track costs in real time.?

• Cost Allocation: Accurate cost allocation to projects, departments, or business units enables better decision-making and accountability.?

Data-Driven Decision Making:?

• Analytics: Cloud cost management tools provide detailed analytics and insights, allowing organizations to make data-driven decisions about resource allocation, rightsizing, and cost optimization.?

• Predictive Modeling : Leveraging historical data to forecast future costs and identify potential risks.?

Continuous Optimization:?

• Automation: Automating tasks like rightsizing, scheduling, and cost optimization helps streamline processes and reduce manual effort.?

• Governance: Establishing clear policies and guidelines for cloud usage ensures that costs are aligned with business objectives and compliance requirements.?

Collaboration and FinOps:?

• Cross-Functional Teams: The shift from procurement to cost control has led to the formation of cross-functional teams, including finance, technology, and business representatives, to collaborate on cloud cost management.??

• FinOps: The FinOps framework provides a structured approach to managing cloud costs, combining financial expertise, technology knowledge, and business acumen.?

In conclusion, the shift from procurement to cost control in cloud management reflects a growing emphasis on optimizing cloud resources, making data-driven decisions, and aligning cloud spending with business goals. By adopting a more proactive and strategic approach, organizations can maximize the benefits of cloud computing while minimizing costs.?

The Limitations of Rightsizing and Beyond?

While rightsizing is a foundational aspect of FinOps, it is insufficient on its own for achieving optimal cost efficiency. Dynamic workloads, the complexity of cloud environments, missed optimization opportunities, and the limitations of focusing solely on infrastructure costs necessitate a broader approach.?

To achieve comprehensive cost optimization, organizations must:?

• Implement Continuous Monitoring: ? Track resource utilization, spending patterns, and cost drivers.?

• Optimize Workloads: ? Identify opportunities to refactor, consolidate, and/or automate workloads.?

• Allocate Costs Accurately: ? Assign costs to specific business units or projects for informed decision-making.?

• Establish Robust Governance: ? Implement policies and controls to prevent waste and ensure compliance.?

• Foster Collaboration: ? Encourage collaboration between finance, IT, and business teams.?

App Refactoring and Modernization for Optimized FinOps?

Refactoring and modernizing applications are essential for optimizing FinOps.??

• Identifying Inefficiencies: ? Code reviews can uncover performance bottlenecks, resource-intensive operations, and scalability challenges.?

• Ensuring Scalability: ? Addressing potential scalability issues before migration ensures efficient handling of increased workloads.?

• Preventing Security Vulnerabilities: ? Identifying and addressing security risks protects sensitive data.?

• Improving Maintainability: ? Well-structured, readable, and maintainable code facilitates future changes and updates.?

• Facilitating Cloud Migration: ? A well-refactored application simplifies migration planning and reduces risks.?

Organizations can optimize resource utilization, reduce costs, and improve overall cloud performance.?

Code Review: A Catalyst for Optimization?

Code review is a fundamental step in optimizing app resource usage.?

• Identifying Inefficiencies: Uncovering performance bottlenecks, resource-intensive operations, and scalability challenges.?

• Ensuring Scalability: Addressing potential scalability issues before migration, to handle increased workloads efficiently.??

• Preventing Security Vulnerabilities: Identifying and mitigating security risks to protect sensitive data.?

• Improving Maintainability: Ensuring code is well-structured, readable, and maintainable to facilitate future changes and updates.?

• Facilitating Cloud Migration: Simplifying migration planning and reducing risks through a well-refactored application.?

Organizations can optimize resource utilization, reduce costs, and improve overall cloud performance.?

?

Conclusion?

Beyond rightsizing, a comprehensive approach to FinOps is essential for organizations to maximize the value of their cloud investments. By combining rightsizing with workload optimization, app refactoring, and code review, organizations can achieve significant cost savings, improve efficiency, and enhance their ability to respond to changing business needs.?

?

How DELVIQ Optimizes Your Cloud Journey?- CLOUD-GO

Microsoft Cloud Adoption Framework (CAF) in a Danish context

DELVIQ & CLOUD-UNIT have developed a Danish model - CLOUD-GO - for successful cloud adoption. A more agile and streamlined approach to cloud adoption that is tailored to the needs of Danish companies.

CLOUD-GO is a Danish-adapted CAF model that has been specifically designed for the needs of Danish companies. The model offers a more balanced, agile and streamlined approach to cloud adoption that takes into account the specific needs and challenges faced by Danish companies.

The model further takes into account the requirements that are typically given higher value in Denmark, such as GDPR, security and rights modelling. This applies especially in the public sector, where the requirements differ from other sectors.

?CLOUDUNIT has helped a large number of Danish companies with the effective implementation of a Cloud Adoption Model. With new EU/

Danish requirements for cloud use, the model has been refined over recent years in collaboration with companies and authorities.

Spar Nord, Copenhagen Municipality and HOFOR are among CLOUDUNIT customers who have received sparring and advice on an Enterprise Cloud architecture adapted to their specific needs.

This ensures correct implementation of the platform in the organization and establishment of the right interfaces between customer, supplier and cloud environment.

Tailored for Danish companies: CLOUD-GO is adapted to the specific needs and challenges that Danish companies – large and small face.

Agile and streamlined approach: The model offers a more flexible and efficient approach to implementing cloud solutions.

Unbiased advice: We help companies choose the solution that best matches their needs.

In-Depth Expertise: Our team of experienced consultants have in-depth knowledge of CAF and cloud adoption and ensure a successful cloud migration journey.

WHY

Microsoft's Cloud Adoption Framework Enterprise Scale (CAF) is a comprehensive tool that guides organizations through their Azure cloud journey.

However, many Danish companies, especially medium-sized ones, experience challenges in implementing all elements of CAF, as it can seem overwhelmingly complex and lead to unnecessary costs, time consumption and complexity.

BACKGROUND FOR CLOUD-GO

CAF overcomplication that does not meet the needs and budget of Danish companies. There is a risk of losing focus on the most

important elements of the implementation.

Lack of flexibility to meet the simpler needs of businesses. This can result in costly solutions that cannot be justified financially.

Dependence on consulting houses , which can create dependence on large consulting houses and reduce ownership of the platform.

In addition, the use of "one-size-fits-all" models can make future changes and adaptations difficult.

Lack of internal expertise should be accommodated to focus on building internal expertise within relevant areas of competence. This will give companies the opportunity to make changes and adaptations independently of external suppliers.

Contact me for more views on this topic.