Title

AWS re:Invent 2023 - FinOps on AWS: Accelerated outcomes to maximize ROI (PRT201)

Summary

• David Wharton, chief architect for AWS at CDW, discusses FinOps and cloud cost management strategies.
• Emphasizes the importance of transparency and actionable data in managing cloud finances.
• Outlines the FinOps maturity lifecycle stages: crawl, walk, and run, and how to progress through them.
• Recommends creating an action plan, acquiring data from AWS, and using both internal and external tools for optimization.
• Suggests starting with low-hanging fruit for quick wins and setting up trends, budgets, and weekly reports.
• Highlights the significant cost savings from reserved instances and savings plans, especially with BYOL.
• Advises maintaining a balance between pay-as-you-go and committed use for cost efficiency.
• Introduces tools like ProsperOps and Zesty for managing reserved instance lifecycles and spot instance reliability.
• Stresses the importance of an IT roadmap for long-term savings and aligning cloud stakeholders.
• Discusses rate negotiations with AWS and the potential for unlocking value, especially during economic downturns.
• Presents CDW's FinOps services: FinOps Accelerator, consultative advisory, and Managed FinOps.
• Announces the launch of Inkscape, a free cloud cost management tool, and the Storage Optimizer for AWS, a Slack bot for storage improvements.

Insights

• FinOps is a critical practice for organizations to manage and optimize cloud costs effectively.
• The maturity of an organization's FinOps practices can significantly impact cloud consumption and cost savings.
• Quick wins in cost optimization can be achieved by addressing obvious inefficiencies, but long-term savings require a strategic approach.
• Leveraging reserved instances and savings plans can lead to substantial cost reductions, but it's crucial to avoid over-commitment.
• Tools that manage the lifecycle of reserved instances and improve the reliability of spot instances can further enhance cost savings.
• An IT roadmap aligned with FinOps practices can lead to significant net savings, as demonstrated by the real-world scenario of $3 million annual savings.
• Engaging stakeholders across the organization is essential for the success of FinOps initiatives.
• CDW offers various levels of FinOps support to meet organizations where they are in their FinOps journey.
• New tools like Inkscape and the Storage Optimizer for AWS can provide additional visibility and optimization opportunities for cloud cost management.