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Tag: cloud cost management

How DevOps Teams Can Unlock Cloud Savings and Improve DevEx

Can DevOps engineers unlock cloud cost savings for their organization that are incremental to what cost optimization tools offer (and improve the developer experience in the process)? Absolutely. Allow me to illustrate how.

Reserve instance buying optimization and auto-stopping are proven tactics to reduce waste, but are those the only forms of waste that exist in your cloud budget? Of course not.

Think about all the times environments have been brought up and then stayed up longer than required. Consider all of the times a commit changed the way data is stored, which spiked the cost to operate. Or how about the times when a commit changed how memory was used, which resulted in unexpected autoscaling?

Collaborative Cost Management

So the question becomes, what is the most efficient way to identify and root out additional savings while also balancing governance and agility? Bottom-up, collaborative cost management may offer a solution.

A bottom-up approach to cost management involves pushing knowledge and functionality to the edge of the application and data engineering teams that own and operate code every day. This does not mean ceding centralized cost control to developers but rather arming them with timely, actionable insights inside their everyday workflow and, where appropriate, enabling action on a self-serve basis.

How does this work in practice? It starts by enabling engineering teams to see the costs of the various services and environments they own on a timely basis. This helps teams understand when spikes occur and provides a path they can follow to understand why the spike occurred.

That path can involve bringing different pieces of information together for engineering teams. They’ll want to see the costs of the individual resources that power their service or environment during the selected timeframe to see what spiked and maybe even drill down further to see the cost drivers of that individual resource. They’ll likely want to see deployments and commits, at a minimum, and maybe even explore observability data as well during this timeframe.

Once they’ve identified a root cause, to the extent it involves needing to change a configuration setting of a resource, teams may want to understand a resource’s dependents, like other resources that are linked to it as well as any other environments and services that depend on it to size up the blast radius of a potential change. From there, they may wish to view config settings for the resource.

Collaborative Discussion

Finally, you want to give teams the ability to take certain actions on their own and, in other cases, foster a collaborative discussion between engineering and DevOps. You can accomplish the former via self-service actions, which are simple no-code workflows in which a developer can see if the DevOps team has allowed an action to be seen by a specific team for a resource via a role-based access control (RBAC) model. These workflows connect to your existing infrastructure-as-code (IaC) or CI/CD tools to orchestrate the desired change, leveraging golden paths defined by DevOps. This approach alleviates developers’ cognitive load and TicketOps for the DevOps team. For various changes that require coordination with DevOps, your engineering teams can have a collaborative discussion on a timely basis thanks to the fresh, actionable information you’ve made available to them.

So what does it take to actually implement this vision? It’s easier than you might realize.

Chances are, your existing cost optimization tool cannot provide cost visibility at the level of granularity and freshness developers need – daily cost insights at the service (or data pipeline, ETL job, etc.) level. That’s okay, though. Collaborative cost management is an incremental tactic that can still leverage some of the insights in these tools.

The easiest way to facilitate this competency across your enterprise is via an internal developer portal. Internal developer portals are living sociotechnical knowledge maps that connect various data from your tools, clouds and teams to your services and the teams that own them. They are the perfect conduit to slice cloud cost data at the service level and put it in front of application and data engineers in their everyday workflow.

Backstage, an open source framework to build a developer portal, offers a cloud cost plugin, though it involves a time commitment to set up, and the information it makes available to your developers may be limiting in the context of this scenario. For instance, your team may be unable to see per-resource costs, individual resource cost drivers, blast radius information and config settings. You must also expend effort wiring actions to support resource changes.

You could also try building a BI dashboard for your team to accomplish this. This would require ingesting daily cost feeds from your cloud and then allocating the cost of each resource to each environment and to each service leveraging proprietary resource<->environment<->service mappings you would build and maintain as your system evolves. You would also need to build scripts and leverage IaC and CI/CD tooling and teach your engineers how to discover, configure and execute these actions.

However you choose to get to this destination, collaborative cost management is a powerful emerging competency that can lead to meaningful savings and improve the developer experience by empowering your teams with the knowledge and functionality they need to manage costs on a proactive and, where appropriate, self-service basis.

November 21, 2023
Pricing Plan

November 21, 2023
What the Future Holds for FinOps and DevOps

FinOps, or financial operations, is a cultural practice that brings financial accountability to the variable spend model of the cloud. It’s a strategic approach combining systems, best practices and culture to increase an organization’s ability to understand cloud costs and make informed decisions.

In essence, FinOps is a framework for managing cloud operating expenses (OpEx). It’s about bringing together technology, business and finance professionals to ensure that companies can get the most out of their cloud investments. The goal is to provide businesses with a better understanding of their cloud usage and costs, enabling them to make strategic decisions about resource allocation and cost management.

FinOps bridges the gap between finance and operations. It’s not just about monitoring costs; it’s about understanding why those costs occur, how they relate to business value and what can be done to optimize them. It’s a comprehensive, cross-functional and continuous approach to managing cloud expenses, ensuring that businesses can maximize their return on investment (ROI) in the cloud.

What Does FinOps Mean for DevOps Teams?

Traditionally, DevOps has been focused on improving the speed, efficiency and quality of software delivery. But with the advent of cloud computing, cost has become a crucial factor. The dynamic nature of the cloud, with its pay-as-you-go model, means that costs can quickly spiral out of control if not properly managed. This is where FinOps comes in.

Budget Responsibility

As a DevOps team member, you’re likely used to thinking in terms of speed, performance, and quality. With FinOps, you need to add cost to that equation. You’re not just responsible for delivering high-quality software quickly; you’re also accountable for the cost of that delivery. This requires a shift in mindset, moving from a project-based budgeting approach to a product-based one.

In a project-based approach, you have a fixed budget for a specific project. Once the project is finished, so is the budget. In a product-based approach, on the other hand, you’re responsible for the ongoing costs of a product throughout its life cycle. This means you need to consider not just the cost of development, but also the cost of maintenance, support, and continuous improvement.

Resource Optimization

In the context of FinOps, resource optimization is all about making sure you’re getting the most bang for your buck. You want to ensure that you’re using your cloud resources as efficiently as possible, minimizing waste and maximizing value.

Resource optimization can involve a variety of strategies, from rightsizing instances to eliminating idle resources. But it’s not just about cutting costs; it’s also about aligning costs with value. You need to understand the value that each resource brings to your organization and allocate costs accordingly. This requires a deep understanding of your cloud usage and a commitment to continuous monitoring and improvement.

Collaboration With Finance

One of the key aspects of FinOps is the collaboration between DevOps and finance. You’re no longer working in silos; you’re part of a cross-functional team working towards a common goal. This requires open communication, mutual understanding, and shared responsibility.

As a DevOps team member, you need to understand the financial implications of your decisions. You need to be able to articulate the value of your work in financial terms, demonstrating how your efforts contribute to the organization’s bottom line. At the same time, you need to be open to feedback and guidance from your finance colleagues, learning from their expertise and incorporating their insights into your decision-making process.

Performance Metrics

Performance metrics are crucial in the world of FinOps. They provide the data you need to understand your cloud usage, monitor your costs and make informed decisions. But these aren’t just any metrics; they’re metrics that align with your business goals and reflect the value of your cloud investments.

These metrics might include cost per workload, cost per user or cost per unit of output. The key is to choose metrics that make sense for your organization, providing meaningful insights that can guide your resource allocation and cost management efforts. And remember, these metrics need to be regularly reviewed and updated to reflect changes in your cloud usage and business needs.

Automation of Cost Controls

Automation is a key tool in the FinOps toolkit. It can help you streamline your cost management processes, reduce manual effort and increase accuracy. From automated alerts to automated remediation, there are many ways automation can improve your FinOps efforts.

With automated alerts, you can be notified when your cloud costs exceed a certain threshold. This allows you to respond quickly, addressing issues before they become major problems. With automated remediation, you can take this a step further, automatically adjusting your cloud resources in response to changes in demand or performance.

Future FinOps Trends

The year 2024 promises to be an important one for FinOps, with several trends poised to redefine the landscape:

1. AI Algorithms for Cost Analysis and Prediction

The use of AI algorithms for real-time cost analysis and predictions is predicted to be a major trend in 2024. AI enables the automation of complex financial calculations and projections, allowing for more accurate and timely decision-making. AI is already not just analyzing and predicting costs but also providing actionable insights to optimize these costs.

The power of AI in FinOps lies in its ability to process massive amounts of data quickly and accurately. It can analyze past and current financial data, identify patterns, and predict future trends. This means that instead of reacting to financial changes after they happen, you can be proactive and make strategic decisions based on accurate predictions.

The use of AI in FinOps will also enhance risk management. By predicting potential financial risks, AI can help organizations take preventive measures and mitigate the impact of these risks. The integration of AI in FinOps is a trend you cannot afford to ignore if you aim for financial operations excellence.

2. Empowering Teams to Manage Their Own Cloud Costs

Traditionally, financial operations and cost management have been centralized functions. However, the advent of cloud computing and the shift toward decentralized work models have resulted in a new trend—empowering individual teams to manage their own cloud costs. In 2024, we can expect this trend to gain further momentum.

In a cloud environment, costs are often directly linked to usage. This means that the teams using the cloud resources are in the best position to control these costs. By empowering these teams to manage their own cloud costs, organizations can promote accountability, encourage resource optimization, and ultimately achieve cost efficiency.

This approach requires a shift in mindset and the development of new skills. Teams need to understand the financial implications of their actions and make cost-effective decisions. They also need tools and processes to monitor their cloud usage and manage their costs effectively.

3. Managing Costs Across Multi-Cloud and Hybrid Cloud Deployments

The use of multiple cloud providers and the coexistence of cloud and on-premises data centers have added a new layer of complexity to financial operations. Managing costs across these diverse environments is a major challenge, and it’s another trend that is expected to shape FinOps in 2024.

With multiple cloud providers, each with its own pricing model and billing system, cost management can be a daunting task. Add to this the costs of maintaining on-premises data centers, and the complexity multiplies. In 2024, organizations will need to adopt strategies and tools that enable them to manage these costs effectively.

One of these strategies is the use of cost management platforms that provide a unified view of costs across multiple environments. These platforms can track and analyze costs, allocate them to the appropriate departments or projects, and provide insights for cost optimization. They can also automate cost reporting and forecasting, easing the workload of financial teams.

4. Emphasizing the Security Aspects of FinOps

As financial operations become more complex, the risk of abnormal spending patterns or unauthorized activities increases. Identifying and addressing these issues promptly is critical to prevent financial losses and maintain financial integrity. In 2024, the identification of abnormal spending patterns or unauthorized activities will be a key focus area in FinOps.

Tools and technologies that enable real-time monitoring and anomaly detection will play a crucial role in this regard. These tools can analyze financial data, detect deviations from normal patterns, and alert you to potential issues. They can also help you trace these anomalies back to their source, facilitating investigation and resolution.

Moreover, organizations will need to strengthen their internal controls and governance mechanisms. They will need to define clear responsibilities and accountabilities, establish robust approval processes and enforce strict access controls. Regular audits and reviews will also be essential to ensure compliance and detect any irregularities.

5. Measuring and Optimizing for Environmental Impact

The environmental impact of financial operations is a concern that cannot be overlooked. As organizations strive to be more sustainable, measuring and optimizing for environmental impact is becoming a key aspect of FinOps. This trend is expected to gain prominence in 2024.

The environmental impact of financial operations is largely tied to energy consumption. In a cloud environment, for instance, the energy consumed by data centers contributes to carbon emissions. Therefore, optimizing cloud usage not only reduces costs but also reduces environmental impact.

To measure and optimize for environmental impact, organizations will need to track their energy consumption, calculate their carbon footprint, and implement strategies to reduce it. These strategies can include using energy-efficient technologies, optimizing resource usage and sourcing renewable energy.

Conclusion

In conclusion, FinOps is a dynamic and evolving field. The trends and predictions outlined above provide a roadmap for achieving financial operations excellence in 2024. By harnessing the power of AI, empowering teams to manage their own cloud costs, managing costs across diverse environments, emphasizing security in FinOps and optimizing for environmental impact, you can take your FinOps program to the next level.

November 16, 2023
NetApp Extends Microsoft Alliance to Include CloudOps Tools

NetApp this week extended its alliance with Microsoft to now include its CloudOps portfolio of tools for optimizing cloud computing environments.

Previously, the alliance between the two companies focused on data management but is now expanding to include tools to deploy workloads, improve performance and reduce costs using machine learning algorithms across both instances of virtual machines and the Azure Kubernetes Service (AKS).

Kevin McGrath, vice president of Spot by NetApp, said in more challenging economic times, there’s a lot more focus on programmatically reining cloud costs using FinOps best practices within the context of a DevOps workflow. Organizations are also starting to create platform engineering teams to more efficiently manage DevOps workflows at scale across hybrid cloud computing environments, he added.

For years, developers have been provisioning cloud infrastructure resources with little to no oversight. Unfortunately, developers are also prone to over-provision infrastructure resources to ensure maximum application availability. Many of those infrastructure resources never wind up being consumed by the application, so the cost of cloud computing winds up becoming inflated.

IT leaders are also being increasingly required to make sure cloud costs are more predictable. Sudden spikes in consumption resulting in higher monthly bills are an unwelcome surprise to finance teams that are now required to manage costs more closely.

Ongoing advances in artificial intelligence (AI) should make it easier to predict costs across highly dynamic cloud computing environments. Navigating all the pricing options that cloud service providers make available is challenging. IT teams need to clearly understand the attributes of each workload to ensure optimal usage of cloud infrastructure resources.

Less clear is the degree to which IT teams are pitting cloud service providers against one another. Pricing across the cloud services that most organizations use today is fairly consistent. Most organizations that deploy workloads in the cloud tend to run the bulk of them on the same service because they lack the internal expertise needed to manage multiple clouds equally well. There may be some workloads running on additional clouds, but enterprise licensing agreements reward customers for running more workloads on a cloud. The only way to really optimize cloud spending is to shift workloads to less expensive tiers of service that might only be available for a relatively limited amount of time.

One way or another, the management of cloud computing is finally starting to mature. As the percentage of workloads that organizations have running in the cloud steadily increases, IT teams are becoming more adept at both maximizing application performance and the associated return on investment (ROI).

Each IT organization will need to decide for itself how best to manage cloud computing environments as it continues to build and deploy cloud-native applications alongside legacy monolithic applications running on virtual machines, but NetApp is betting the need for tools such as CloudOps will increase as cloud computing environment become more complex. The challenge, as always, is finding and retaining the talent needed to manage cloud computing environments when every other organization is looking for that same expertise.

November 10, 2023
A Manifesto for a More Sustainable Cloud Future

I’ve talked about cloud sustainability extensively in these pages previously, but until we start taking tangible steps to collectively reduce our cloud carbon footprint, things are not going to change. Achieving real change comes down to a smarter, more efficient use of resources and establishing a culture of sobriety—both financial and environmental—that flows through an organization. Below, I present the steps necessary for a more sustainable cloud future.

1. Shift the Mindset

First, and arguably most important, there needs to be a shift in mindset that sees IT managers, CIOs and other IT leaders become part of a much broader conversation about how to bake sustainability into the overall IT strategy from the start. In doing so, this offers a path to bring development, finance, ESR and business teams together to ensure greater financial and environmental accountability.

2. Right-Size to Optimize

Regular sustainability assessments can help to identify oversized resources and underused services, which paves the way for smarter allocation. Eliminating unnecessary services and right-sizing instances will help to identify recurring problem areas and serve to reduce carbon emissions. This will create a best practice of optimal resource usage and, consequently, contribute to ongoing savings made to an organization’s bottom line.

3. Embrace Dynamic Scaling

Most cloud providers now offer dynamic scaling capabilities that allow resources to be adjusted according to demand. By embracing these sorts of features, organizations can ensure that resources are used more efficiently while minimizing emissions. This sort of real-time optimization can strike an important balance between performance and environmental responsibility.

4. Fewer Servers Means Less Power Needed

Server virtualization—essentially the process of dividing a physical server into multiple unique virtual servers—offers a clear way of contributing to carbon reduction efforts. By optimizing resources and reducing the physical server count, the consumption of energy can be minimized. Fewer servers mean less power consumption, which directly translates into lower carbon emissions.

5. Only Energy-Efficient Architecture

Platforms such as serverless computing architectures have emerged as a greener alternative to traditional infrastructure, allocating resources only when needed. This creates greater energy efficiency and reduces total carbon emissions. Leveraging these sorts of energy-efficient instance types and hardware, such as ARM-based processors that consume less power than x86-based alternatives, provides a clear way to minimize power consumption and environmental impact.

6. Localization Matters

While the steps above are effective, their impact will be amplified by choosing cloud regions that are based on low-carbon energy sources. For example, regions that are reliant on coal or other high-carbon energy sources should be avoided or used sparingly to minimize environmental impact, but this is not as straightforward as it sounds due to seasonal variations, which might mean that renewable energy sources are subject to fluctuations; the costs associated with storing excess energy from intermittent sources which are both challenging and expensive and the cost of energy trading between regions which can impact carbon footprint.

The truth is that there is no one-size-fits-all solution when it comes to evaluating localization. Assess the energy mix, consider the availability and reliability of renewable energy sources and factor in any seasonal variations or dependencies on fossil fuel-based backup systems. This way, you can make a more informed decision that aligns with your sustainability goals and minimizes the environmental impact of your cloud infrastructure.

7. Align FinOps and GreenOps Strategies

Closely linked to more established terms like FinOps—another framework for managing operational expenditure across an organization, often in conjunction with the cloud and cloud computing—GreenOps is an emerging term that essentially means providing greater cost transparency while promoting a culture of environmental responsibility. The challenge is that making an entire IT ecosystem sustainable requires a step back and all areas of IT to consider their impact on the environment.

This requires collaboration right the way across an organization and with other lines of business which includes areas like HR, marketing, procurement and the accounting departments, all of whom must set business requirements, determine software development and DevOps processes, and adhere to operational principles. Aligning GreenOps and FinOps strategies will allow organizations to start monitoring cloud computing emissions by connecting emissions data directly to their cloud expenses so they can see both the costs to budget and the cost to the environment in the same place.

8. Remember to Turn Off the Tap

Finally, think of efficiency as being the cornerstone of any sustainable initiative, and cloud computing is no different. Optimize cloud instances and you will, in turn, reduce carbon emissions. By evaluating running service instances continuously and strategically and turning off those that are not needed during periods of low demand, organizations can significantly cut down on unnecessary energy consumption. This will not only reduce carbon footprint but also optimize operational costs.

By addressing these complexities head-on, I believe we, collectively, as an industry, have a once-in-a-lifetime opportunity to reduce our carbon footprint and pave the way for a greener, more efficient cloud computing landscape.

October 27, 2023
Complete Guide to AWS Savings Plans
AWS Savings Plans are a flexible and cost-effective way to save on your Amazon Web Services (AWS) usage. These plans allow you to commit to a specific amount of compute capacity over a one- or three-year term in exchange for a significant discount on your AWS usage. Savings plans can help you reduce your AWS bill by up to 72%, depending on the type of plan and your level of commitment.

Why Do You Need AWS Savings Plans?

With the growing reliance on cloud infrastructure in modern IT, it is crucial for organizations to optimize cloud computing costs without compromising on performance or scalability. AWS Savings Plans address this need by providing a flexible and cost-effective solution that allows you to commit to a certain level of usage at a discounted rate.

With AWS Savings Plans, by committing to a specific amount of compute capacity over a set time period, you can save up to 72% on your AWS usage. This can result in significant cost savings for your organization, freeing up resources to invest in other business-critical initiatives.

Another benefit of AWS Savings Plans is the flexibility they offer. Unlike Reserved Instances, which require you to specify instance type, operating system and region, Savings Plans are more flexible and can be applied across different instance types, regions and operating systems. This flexibility makes it easier for you to optimize your cloud computing costs while still meeting your business needs.

Difference Between AWS Savings Plans and Reserved Instances

AWS Savings Plans and Reserved Instances are both designed to help you save on your AWS usage, but they offer different levels of flexibility and cost savings.

Reserved Instances require you to commit to a specific instance type, operating system and region for a one- or three-year term in exchange for a discount on your AWS usage. While this can result in significant cost savings, it also limits your ability to optimize your cloud computing costs based on changing business needs.

AWS Savings Plans offer a more flexible solution that allows you to commit to a certain level of usage across different instance types, regions and operating systems. Additionally, in most scenarios, Savings Plans can provide a higher level of cost savings compared to Reserved Instances.

Types of AWS Savings Plans

There are two types of AWS Savings Plans: Compute Savings Plans and EC2 Instance Savings Plans.

Compute Savings Plans

Compute Savings Plans are the most flexible type of Savings Plans, providing a significant discount on your AWS usage across any instance type, region or operating system. This flexibility makes it easy for you to optimize your cloud computing costs based on your changing business needs.

Compute Savings Plans offer a discount of up to 66% compared to on-demand pricing, depending on the level of commitment you make. They can be used across all AWS services that are powered by Amazon EC2 instances, including Amazon EMR, AWS Lambda and Amazon ECS.

EC2 Instance Savings Plans

EC2 Instance Savings Plans are a more specific type of Savings Plan, offering a discount on your AWS usage for a specific instance type within a region. These plans provide a higher level of cost savings compared to Compute Savings Plans, with discounts of up to 72%.

EC2 Instance Savings Plans are ideal for organizations that have a predictable workload and require specific instance types within a region. However, they offer less flexibility than Compute Savings Plans, as they cannot be applied across different instance types, regions or operating systems.

AWS Savings Plans Pricing Models

AWS Savings Plans offer three different payment options to suit your organization’s budget and commitment level: All Upfront, Partial Upfront and No Upfront.

All Upfront

With the All Upfront payment option, you pay for the entire term of your Savings Plan upfront, resulting in the highest discount compared to on-demand pricing. This option is ideal for organizations that have the budget available to make a significant upfront payment in exchange for maximum cost savings.

Partial Upfront

The Partial Upfront payment option allows you to pay a portion of your Savings Plan upfront and the remaining balance on a monthly basis. This option provides a balance between upfront commitment and ongoing flexibility, with a lower discount compared to the All Upfront option.

No Upfront

With the No Upfront payment option, you pay for your Savings Plan on a monthly basis, with no upfront payment required. This option provides the lowest discount compared to on-demand pricing but offers the greatest flexibility for organizations with limited budgets or uncertain future usage requirements.

How to Monitor and Manage AWS Savings Plans

Monitoring and managing your AWS Savings Plans, as part of your overall cloud operations strategy, is critical to ensuring that you are optimizing your cloud computing costs and maximizing your savings. AWS provides several tools and services to help you monitor and manage your Savings Plans effectively:
- AWS Cost Explorer: A powerful tool that allows you to analyze your Savings Plans usage and costs, helping you identify opportunities to optimize your cloud computing costs. With Cost Explorer, you can view your Savings Plans coverage, utilization and savings, as well as forecast your future usage and costs.
- AWS Budgets: This service allows you to set custom cost and usage budgets for your organization, helping you track your Savings Plans usage and ensure that you are staying within your budget.
- Savings Plans Recommendations: This feature analyzes your past usage and recommends the optimal Savings Plans for your organization. It can help you make informed decisions about which Savings Plans to purchase and how much commitment to make.
Conclusion

AWS Savings Plans are an excellent solution for organizations looking to optimize their cloud computing costs and save on their AWS usage. With their flexibility, cost savings and easy monitoring and management options, AWS Savings Plans are a valuable tool for any organization using AWS services.

To unlock the full potential of AWS Savings Plans, it’s crucial to understand the different types of plans, their pricing models and how to effectively monitor and manage your usage. By doing so, you can maximize your savings and ensure that your organization is getting the most out of its investment in AWS.
July 21, 2023
Cloud Orchestration and its Impact on DevOps Teams
Cloud orchestration refers to the coordination and management of various interconnected cloud services and resources to automate and streamline complex IT processes. In simple terms, it is the process of integrating, synchronizing, and automating various cloud-based components to create a seamless and unified workflow.

Cloud orchestration aims to optimize the deployment, management, and use of resources in a cloud environment, improving efficiency, reducing costs, and ensuring that cloud services are delivered in a timely and effective manner. It is related to the concept of CloudOps (cloud operations), which uses cloud orchestration concepts to allow more efficient management of cloud resources. Cloud orchestration is a critical aspect of modern IT infrastructure management, as it enables organizations to manage and control their cloud resources more effectively.

Difference between Cloud Orchestration and Cloud Automation

Though the terms cloud orchestration and cloud automation are often used interchangeably, they have distinct differences.

Cloud automation refers to the process of automating individual tasks and processes within the cloud environment. It involves the use of scripts, templates and other tools to automate repetitive tasks, such as provisioning resources, deploying applications and configuring environments. The primary goal of cloud automation is to reduce the time and effort needed to manage cloud resources.

Cloud orchestration is a broader concept that encompasses not only the automation of tasks but also the coordination and management of the entire cloud ecosystem. It involves the integration of various cloud services, tools and resources to create a unified, streamlined workflow. Cloud orchestration ensures that all components in the cloud environment work together seamlessly, automating complex processes and managing dependencies between tasks.

In essence, cloud automation is a subset of cloud orchestration. While cloud automation focuses on automating individual tasks, cloud orchestration takes a more holistic approach, orchestrating multiple tasks and resources to achieve a higher level of automation and efficiency.

How Cloud Orchestration Enhances DevOps Practices

Increased Efficiency and Speed

One of the main benefits of cloud orchestration in a DevOps context is the ability to increase efficiency and speed in the software development and deployment process. By automating and streamlining various tasks, cloud orchestration eliminates manual processes, reduces the potential for human error and accelerates the overall development cycle.

Improved Collaboration and Communication

Cloud orchestration fosters better collaboration and communication between development and operations teams by providing a unified platform for managing cloud resources. This shared platform enables teams to work together more effectively, breaking down traditional silos and ensuring that all stakeholders have visibility into the development and deployment process.

Enhanced Infrastructure and Application Management

Cloud orchestration simplifies the management of complex cloud infrastructure by providing a single, unified platform for cloud optimization—improving the management of resources, applications and services in the cloud.

This centralized management approach enables organizations to more easily monitor, control and optimize their cloud environment, ensuring that resources are used effectively and that applications are running smoothly. With cloud orchestration, organizations can more easily scale their infrastructure to meet changing demands, ensuring that they have the resources they need when they need them.

Improved Monitoring and Troubleshooting

Cloud orchestration provides improved monitoring and troubleshooting capabilities, enabling organizations to more effectively identify and address issues in their cloud environment. With comprehensive monitoring tools and dashboards, teams can gain insight into the performance of their applications, identify bottlenecks and pinpoint potential issues before they become critical.

Challenges of Integrating Cloud Orchestration With DevOps

Despite the numerous benefits of cloud orchestration, integrating it into DevOps practices can present several challenges. Some of the common challenges include:
- Complexity: Cloud orchestration involves the integration of various cloud services, tools and resources, which can be complex and time-consuming. Organizations may struggle with complexity, particularly if they lack the necessary expertise or resources to effectively implement and manage the solution.
- Resistance to change: Implementing cloud orchestration requires a change in mindset and approach to software development and deployment. As your organization migrates more systems to the cloud, some team members may be resistant to adopting new processes and tools, making it difficult to fully embrace and realize the benefits of cloud orchestration.
- Security concerns: As with any cloud-based solution, security is a critical concern when integrating cloud orchestration into DevOps practices. Organizations must ensure that their solution is secure and that they have the necessary policies and procedures in place to protect their sensitive data and resources.
- Cost and resource constraints: Implementing and managing a Cloud Orchestration solution can be resource-intensive, requiring significant investment in infrastructure, tools, and personnel. Organizations must carefully consider the costs and resources required to implement cloud orchestration and determine whether the benefits outweigh the investment.
Best Practices to Integrate Cloud Orchestration Into DevOps

To successfully integrate cloud orchestration into DevOps practices and overcome the challenges mentioned above, organizations should consider the following best practices:
- Assess your organization’s readiness: Before implementation, evaluate your organization’s readiness for change. This includes assessing your existing infrastructure, processes and tools, as well as your team’s willingness and ability to adopt new practices and technologies.
- Develop a clear strategy: Develop a clear strategy for integrating cloud orchestration into your DevOps practices. This should include defining your goals and objectives, identifying the tools and resources you will need and establishing a timeline for implementation.
- Choose the right tools and technologies: Select the appropriate tools and technologies that best meet your organization’s needs and requirements. Consider factors such as ease of integration, scalability, security and cost when evaluating potential solutions.
- Train and educate your team: Ensure that your team has the necessary knowledge and skills to effectively implement and manage cloud orchestration. This may involve providing training and education on new tools, processes and best practices, as well as fostering a culture of continuous learning and improvement.
- Monitor and measure success: Continuously monitor and measure the success of your implementation. This includes tracking key performance indicators (KPIs), such as deployment speed, resource utilization and application performance, to ensure that your solution is delivering the desired results.
Conclusion

Cloud orchestration is an essential tool for organizations looking to streamline and optimize their IT infrastructure, particularly in the context of DevOps practices. By automating and coordinating complex cloud processes, organizations can improve efficiency, speed, collaboration and overall performance.

However, successfully integrating with DevOps can be challenging, requiring a clear strategy, the right tools and technologies and a commitment to continuous improvement. By following the best practices outlined in this guide, organizations can overcome these challenges and fully realize the benefits.
July 6, 2023
FinOps Gaining Ground, But Progress is Slow

A CloudBolt Software survey found that while the majority (98%) of respondents worked for organizations with a formal FinOps team (82%) or are actively considering adding one (16%), realizing value from FinOps is slow. More than half of existing FinOps teams (54%) were formed just 12 months ago or less, the survey also found.

The trouble is, only one in of 500 respondents claimed to achieve any material value from FinOps to date. More than three-quarters of respondents (76%) said they will have to wait two to three years to see real FinOps-driven results.

The survey polled 500 executives, engineers and developers at companies with over 5,000 employees in the U.S., Canada, United Kingdom and Australia. It was conducted by Wakefield Research on behalf of CloudBolt Software, a provider of a platform for managing distributed computing environments.

A total of 45% of respondents also questioned FinOps efficacy in the real world. Specifically, 15% flagged FinOps as being “theoretically easy but harder in practice,” with another 13% regarding it as “much ado about nothing.” Another 10% said it is “nothing more than a suggested framework,” while 7% labeled FinOps as “a necessary evil.”

Nevertheless, a full 89% also described FinOps as the silver bullet for reining in the complexity of cloud cost management, with 68% noting that FinOps is among their organization’s most strategic priorities for 2023. The average size of a FinOps team is now 4.1 people, with the “director level” being the senior-most leader on the team 53% of the time, the survey noted.

A total of 71% noted that achieving this year’s IT goals without a FinOps practice would pose a significant challenge, with 74% reporting that FinOps is now on par with ITOps, DevOps, SecOps and other IT disciplines.

In addition, 71% of respondents said funding for FinOps initiatives increased in 2023, with 58% reporting key performance indicators (KPIs) and metrics to the C-suite or board of directors.

CloudBolt Software CTO Kyle Campos said it’s clear that when it comes to reining in costs, large enterprises are struggling to effectively manage IT across multiple silos. In many cases, organizations were investing heavily in IT before and during the COVID-19 pandemic to drive digital business transformation initiatives without many cost controls being put in place, he added.

Now that organizations are encountering economic headwinds, many chief financial officers are now asking IT leaders to be a lot more efficient, noted Campos.

Developers, in particular, have for years been provisioning cloud infrastructure resources with little to no oversight. Unfortunately, developers are prone to leaving the proverbial lights on by, for example, leaving application development environments running over a weekend or simply forgetting that a virtual machine has been left to run for weeks—sometimes even months.

Developers are also not especially good at alerting IT leaders of possible spikes in consumption due to, for example, a data-intensive workload being constructed. No finance team likes to be surprised by a monthly bill for a cloud service that is twice as much as the previous month.

The one thing that is certain is that time is of the essence. FinOps, at its core, may not necessarily be a new idea, but IT organizations that fail to practice it may soon find themselves being held more accountable than any time in recent memory.

July 5, 2023
FinOps Foundation’s FOCUS Aims to Standardize Cloud Billing

Cloud spending is on the rise. As organizations shift more applications to the cloud, there is a growing need to optimize workloads and reduce spending when possible. But a lack of visibility into complex cloud bills often impedes these goals. This is compounded by a lack of data standardization across the multi-cloud landscape, with cloud vendors producing lengthy billing reports in various formats. With things so decentralized, FinOps practitioners often struggle to make sense of it all.

FinOps Open Cost & Usage Specification (FOCUS) is set to change this status quo. FOCUS, an initiative sponsored by the FinOps Foundation, a Linux Foundation technical project, aims to create a standard, vendor-neutral specification for cloud cost, usage and billing data. A common schema for cloud billing should help unify cost data across cloud vendors and greatly aid FinOps objectives in areas like allocation, chargeback, budgeting and forecasting.

I recently met with Udam Dewaraja, FOCUS lead at FinOps Foundation, to understand the context that led to creating the specification. Below, we’ll dive a little deeper into FOCUS, examining the details of the proposed specification and considering what benefits it will bring to cloud consumers and cloud service providers (CSPs).

Why the Cloud Needs a Common Billing Schema

The complexities of today’s cloud services can often create headaches around cloud billing. For instance, AWS alone has hundreds of services and potentially thousands of SKUs. Cloud service providers each have their own data formats and terminologies, which are reflected differently in detailed bills. And with the granularity of cloud metering, enterprises could be staring at hundreds of millions of rows of cost data. Now, extrapolate that across multiple cloud service providers, SaaS and APIs, and you can see the dilemma that the modern CFO faces.

“There are many nuances that FinOps practitioners need to understand,” said Dewaraja. “And a lack of a common definition can be a scalability challenge as you add more things.”

It’s relatively easy to spend money on more and more cloud-based consumption models. As Dewaraja said, “Everyone has the company credit card.” Of course, you can use tools like AWS Cost Explorer, Cloudability or Datadog to garner some insights to reduce spending. But to really get the fuller picture, you need to rationalize cost metrics across many areas. Plus, in 2023, The State of FinOps report found the widest variety of cloud cost management tools in use in the history of the report, indicating tooling sprawl.

Overview of FinOps Foundation

First, for those unfamiliar, the FinOps Foundation is a Linux Foundation-supported group that aims to help practitioners understand the discipline of FinOps. Representing a community of over ten thousand FinOps practitioners, the FinOps Foundation routinely shares best practices and oversees a FinOps framework. “FinOps is more of a cultural practice that should be adopted,” explained Dewaraja. As such, the initiative aims to oversee training, meetups and events and encourage executive buy-in around the FinOps concept.

Understanding the FOCUS Specification

So, what exactly does FOCUS entail? Well, FOCUS is an open source royalty-free specification for cloud billing data. It will provide standard dimensions, attributes, and terminologies for cloud billing data sets. To formalize the specification, the project contributors are actively considering the essential FinOps capabilities and what requirements these cloud bill data sets have in common.

The specification itself has yet to be officially released and is still being formalized at the time of writing. Microsoft and Google have joined the initiative, as well as numerous cloud finance and cost analysis vendors. And while the group waits for additional CSPs to join, the community is building out open source validators and converters, said Dewaraja.

Benefits of a Standard Cloud Billing Spec

Cost management solutions are already available, but what’s not readily available is a method to make business decisions based on broader richer datasets, explained Dewaraja. This is where standardized cloud billing can greatly aid efforts by creating a more holistic picture.

Specifically, this can aid objectives like allocation, chargeback, budgeting, and forecasting. Doing so is often an incremental process, explained Dewaraja—as you gather insights into data, you iteratively use this visibility to make improvements over time.

Some other benefits of adopting FOCUS will likely be:

Putting finance in engineering terms. In the cloud, finance is quite dynamic. And interestingly, the FinOps discipline is becoming engineering’s responsibility as part of the shift left approach, said Dewaraja. Engineers now need to understand this problem and how to architect their solutions cost-effectively. As such, bringing specifications into the mix will help put financial responsibility squarely on the shoulders of engineering terms.

Bringing accountability to cloud consumption. A standard specification should empower essential FinOps capabilities that rely on usage segmentation like internal cost reporting, showback and chargeback. Because if invoices are just one big pie, there is no accountability for individual departments, and you can’t drive the behaviors you need, said Dewaraja.

Win-win for practitioners and cloud vendors. With FOCUS, cloud providers will drive more trust in cost data, providing more visibility. And corporations using the cloud can make their adoption more efficient, likely influencing them to bring on more workloads. “Driving trust and understanding of this cloud data is mutually beneficial,” Dewaraja said.

FOCUS Set to Improve FinOps

Dewaraja, who previously spearheaded FinOps practices at Citigroup, knows all too well the strains of managing disparate cloud billing data. He oversaw a broad, dynamic cloud-native platform of distributed cloud and SaaS and sought to embrace platform engineering principles. In this environment, you need a holistic cost picture that associates various expenses to make the right calls, he said. “You really see success if you can plug this into the workflows of those developers and into business processes themselves,” he said.

Theoretically, FOCUS could deliver on these goals. But although the project is gathering momentum, it’s still in an early stage. For the standard to gain a foothold, it will require greater awareness and more contribution from other CSPs. The specification is community-driven but is being led from the practitioner down, adopting corporate contribution licenses instead of individual developer contributions. Thus, cloud vendors and cost management vendors will likely lead the initial charge.

FOCUS looks great in the long run but will require a little bit of work upfront to get folks on board. That said, it should be on the radar for 2024 roadmaps, said Dewaraja. To learn more about FOCUS and how to contribute, software providers should check out the FinOps Foundation materials.

May 25, 2023
Grafana Labs Reins in Cost of Storing Observability Data

Grafana Labs today made available an ability to customize what observability data is collected via its managed cloud service. This capability can help reduce storage costs in addition to enhancing the dashboard Grafana provides to make it simpler to track metrics usage.

Wayne Jin, vice president of product marketing for Grafana Labs, said both capabilities would make it easier for DevOps teams to track and ultimately reduce the cost of storing the time-series data collected via its cloud platform.

As more DevOps teams use an observability platform to continuously collect metrics like traces and log data, they are discovering that the cost of storing all that high-cardinality data can easily spin out of control.

Grafana Labs is now making available an Adaptive Metrics capability that enables DevOps teams to fine-tune what data is collected and stored. However, in the event of an issue, DevOps teams can also turn back on all data the platform can collect to aid an investigation of the root cause of disruption, noted Jin.

The Cardinality Management dashboards Grafana Labs made available last year for paid tiers of its cloud service are now being made available to users of the free tier of service as well, Jin said. This will further help reduce storage costs by making it easier to identify metrics that are being collected but not used by anyone on the DevOps team, he added.

The Adaptive Metrics aggregation engine can then be applied to transform these metrics at ingestion into lower cardinality versions. Unused or partially used labels are stripped from incoming metrics, reducing the total count of time-series data collected. Adaptive Metrics also recommends aggregations based on an organization’s historic usage patterns, and DevOps teams can choose which aggregation rules to apply. Dashboards, alerts and historic queries are guaranteed to continue to work as they did before aggregation, with no rewrites needed.

Based on results reported by early users, Grafana Labs reported that Grafana Cloud Adaptive Metrics could eliminate an estimated 20-50% of the time-series data collected with no perceived impact on observability.

The Grafana Cloud service relies on an instance of open source Grafana Mimir to store data collected in a format originally defined for the open source Prometheus monitoring tool. While Prometheus is widely employed in Kubernetes environments, it’s also starting to gain traction as a monitoring platform in legacy monolithic environments. The amount of data being collected via that platform over time is steadily increasing. The Grafana Labs approach makes it possible for DevOps teams to reduce that data whenever there is no usage that needs to be investigated, for example.

It’s still early days as far as adoption of observability is concerned, but in uncertain economic times, there’s generally a lot more sensitivity to the total cost of IT. Many organizations are especially focused on reducing the cost of storing data in the cloud to rein in monthly spending on cloud services. Regardless of the motivation, collecting and storing data that isn’t needed is never the best use of cloud storage resources that, from a cost perspective, are just as finite in the cloud.

May 9, 2023