FinOps & Cost Management
Objective:
The aim of the Cost Management is to ensure that IT services and infrastructure is correctly planned, analysed and optimised, to be able to deliver business requirements in a cost effective and timely manner. Cost Management supports the provision of Cloud services to the business by monitoring current workloads against expected spend.
Cost Management provides the ability to understand the future business requirements, the operation of the current infrastructure, and ensures that all current and future cost and performance aspects of the business requirements are provided in an efficient, timely and cost-effective manner.
- Plan for future business demand and budgetary costs and ensure provision of sufficient capacity to meet this demand.
- Contribute to meeting service levels by managing the cost and performance of services and components.
- Provide advice and guidance on all cost related activities.
- Provide financial optimisation to only consume the cloud services needed
The objectives of Cost Management are to:
Policy:
- Cost Management Plan will be created and maintained.
- Cost Management will be implemented with the aid of appropriate Cloud monitoring tools such as Azure Cost Management.
- Cost Management will apply to all IT services where cost related targets have been established. In case these targets change, the impact on Cost Management will be assessed
- Scheduling of the downtime of any component affecting service Costs (or the monitoring of costs) will be agreed with various stakeholders through Change Management Process.
- Costs will be attributed to ensure that Product Owners are accountable for their team’s spending.
- Cost optimisation will be constantly reviewed to ensure that resources are fully utilised.
Process Flow:
The Cloud Cost Management process constitutes the following high-level activities:
1.0 – Plan Cloud Usage
2.0 – Perform Cost Management
3.0 – Analyse Costs
4.0 – Act to Optimise Spending