FinOps handbook for microsoft azure : empowering teams to optimize their azure cloud spend with FinOps best practices / Maulik Soni.

Format:

Book

Author/Creator:

Soni, Maulik, author.

Language:

English

Subjects (All):

Information technology--Management.

Information technology.

Microsoft Azure (Computing platform).

Physical Description:

1 online resource (256 pages)

Edition:

First edition.

Place of Publication:

Birmingham, England : Packt Publishing Ltd., [2023]

Biography/History:

Soni Maulik: Maulik Soni is a Principal Cloud Solutions Architect at Microsoft. He has bachelor's degree in Advance Accounting and Auditing and advanced diploma in Computer Business Applications form Department of Electronics and Accreditation of Computer Classes, New Delhi. At Microsoft, he helps enterprise commercial customers adopt, implement, and unblock Core infrastructure services. Since January 2022, he has delivered more than a dozen cost optimization assessments and guided cloud governance teams of fortune 50 companies. Each assessment provided actionable recommendations of potential savings of $1-3M/year compared to pay-as-you-go charges. He is passionate about street photography and uses Leica Q2 and enjoys travelling with his wife and teen-age son.

Summary:

Drive financial visibility, set cost optimization goals, and reap savings for your organization with proven practices and invaluable insights Purchase of the print or Kindle book includes a free PDF eBook Key Features Build a FinOps team and foster cross-organizational collaboration to optimize costs Gain a deep insight into resource usage and rates to unlock the secrets of cost optimization Apply your FinOps expertise to run a successful practice, reinvesting savings into new feature development Book Description To gain a competitive edge in today's unpredictable economic climate, you'll need to unravel the mystery of saving costs on Microsoft Azure Cloud. This book helps you do just that with proven strategies for building, running, and sustaining repeated cost optimization initiatives across your organization. You'll learn how to collaborate with finance, procurement, product, and engineering teams to optimize your cloud spend and achieve cost savings that can make a significant impact on your bottom line. The book begins by showing you how to effectively monitor and manage your cloud usage, identify cost-saving opportunities, and implement changes that'll reduce your overall spend. Whether you're a small start-up or a large enterprise, this book will equip you with the knowledge and skills needed to achieve cost savings and maintain a lean cloud infrastructure. As you advance, you'll find out how to benchmark your current cloud spend and establish a budget for cloud usage. Throughout the chapters, you'll learn how to negotiate with your cloud provider to optimize your rate, allocate cost for the container, and gain a solid understanding of metric-driven cost optimization. By the end of this FinOps book, you'll have become proficient in Azure Cloud financial management with the help of real-world examples, use cases, and scenarios. What you will learn Get the grip of all the activities of FinOps phases for Microsoft Azure Understand architectural patterns for interruptible workload on Spot VMs Optimize savings with Reservations, Savings Plans, Spot VMs Analyze waste with customizable pre-built workbooks Write an effective financial business case for savings Apply your learning to three real-world case studies Forecast cloud spend, set budgets, and track accurately Who this book is for This book is for cloud governance experts, finance managers, procurement specialists, product developers, and engineering teams looking to get clear and actionable guidance needed to implement all the phases of the FinOps life cycle in the Microsoft Azure context. This book is ideal for anyone with a basic understanding of financial terms, analytics tools, and the Azure cloud.

Contents:

Cover

Title Page

Copyright and Credit

Dedicated

Contributors

Table of Contents

Preface

Part 1: Inform

Chapter 1: Bringing Visibility and Allocating Cost

Technical requirements

Tools used in this book for implementing FinOps for Microsoft Azure

Azure CLI

Power BI Desktop

Azure Cost Management + Billing

Azure Advisor

Azure Monitor

Azure Pricing Calculator

What is the Microsoft Azure Well-Architected Framework?

Creating a baseline using the WAF Cost Optimization assessment

Cost allocation from an accounting point of view

What is ABC allocation?

Cost allocation in Azure for FinOps

Cost allocation using the account, management group, and subscriptions hierarchy

Cost allocation using resources tags

Exploring cost analysis in the Azure portal

Identifying the offer type for your subscription(s)

Accumulated and forecasted cost

Cost grouped by service

Cost grouped by management group

Cost grouped by tag

Creating, saving, and sharing custom cost analysis views

Summary

Chapter 2: Benchmarking Current Spend and Establishing Budgets

The on-demand and elastic nature of Azure

Developing KPIs for consistent reporting

Strategic and operational KPIs

Leading and lagging KPIs

Why do you need KPIs?

Defining, measuring, and reporting KPIs

Benchmarking between teams

Creating and managing budgets in Azure cost analysis

Production marketing website budget

Marketing development budget

Marketing production budget

Overall Marketing department budget

Tracking the budget spend

Creating and managing alerts in Azure cost analysis

Budget alerts

Spending anomaly alerts

Chapter 3: Forecasting the Future Spend

Introduction to forecasting

Getting your Azure usage data.

Setting up the Cost Management connector for Power BI

Forecasting based on manual estimates

Forecasting based on past usage

Advanced forecasting by application

Identifying usage charges by application

Fully loaded costs in forecasting

Chapter 4: Case Study - Beginning the Azure FinOps Journey

Case study - Peopledrift Healthcare

Challenges

Objectives

Solution

Benefits

Part 2: Optimize

Chapter 5: Hitting the Goals for Usage Optimization

The project management triangle method for goal setting

Setting OKRs or KPIs

OKR examples

KPI - tagging by business unit

KPI - cost avoidance for unattached disks by business unit

KPI - Azure Hybrid Benefit utilization by business unit

KPI - storage accounts with hot, cool, and archive tiers

Understanding Azure Advisor recommendations for usage optimization

Accessing Azure Advisor using the portal

Accessing Azure Advisor using the CLI

Top 10 usage optimization targets using custom Azure workbooks

Target 1 - 98% of all your resources must be tagged

Target 2 - right-sizing underutilized virtual machines

Target 3 - enabling Azure Hybrid Benefit for Windows and Linux VMs

Target 4 - right-sizing underutilized SQL databases

Target 5 - enabling Azure Hybrid Benefit for SQL databases, managed instances, and SQL VMs

Target 6 - upgrading storage accounts to General-purpose v2

Target 7 - deleting unattached discs

Target 8 - deleting unattached public IPs

Target 9 - Azure App Service - using the v3 plan with reservations and autoscaling

Target 10 - Azure Kubernetes Service - using the cluster autoscaler, Spot VMs, and start/stop features in AKS

Trade-offs of cost versus security, performance, and reliability

Cost versus security

Cost versus performance.

Cost versus reliability

Chapter 6: Rate Optimization with Discounts and Reservations

Commitment-based discounts in Azure

The Microsoft Enterprise Agreement

The Microsoft Azure Consumption Commitment (MACC)

Identifying reservation opportunities for your workload

Using the Azure Cost Management (ACM) Power BI app

Scenario 1 - you are purchasing VM reservations for the first time

Scenario 2 - you have existing reservations but want to purchase a new one for another Region and VM SKU

Understanding Azure Advisor recommendations for reservations

Reservation purchase and cadence

Purchase cadence

Reservation details, renewal, savings, and chargeback report

Reservation details

Auto-renewal

Reservation savings and chargeback report

Reservation exchange and cancellation

Exchange reservations

Cancel (return) a reservation

Chapter 7: Leveraging Optimization Strategies

Introducing Azure Spot market

Estimating Spot VM discounts

Spot VM and VM Scale Sets

Spot VM caveats

Eviction type and policy

Limitations

Pricing history and eviction rate details

Architecting the workload to handle eviction

Spot Priority Mix

Discounting strategies with savings plans

Savings plan versus reserved instances

Purchasing a savings plan

Writing a business case for cost optimization

Business case: Orion business analytics platform cost optimization

Chapter 8: Case Study - Realize Savings and Apply Optimizations

Case study - Peopledrift Inc., a healthcare company

The solution

Part 3: Operate

Chapter 9: Building a FinOps Culture

Establishing a CoE for cloud cost management

Motivating engineering teams to take action.

Incentivizing the team

Penalizing the team

Automated tag inheritance, governance, and compliance

Automated VM shutdown and startup

Automated budget actions

Third-party FinOps tools

Apptio Cloudability

CloudHealth by VMware

Cast.ai

Chapter 10: Allocating Costs for Containers

FinOps challenges for containerized workloads

ACI cost allocation

Introducing Kubecost

AKS cost allocation

Showback and chargeback shared AKS clusters

Cost optimization recommendations for AKS clusters

Manage underutilized nodes

Resizing local disks

Reserved instances

Right-sizing your container requests

Remedying abandoned workloads

Right-size persistent volumes

Chapter 11: Metric-Driven Cost Optimization

Core principles of MDCO

MDCO and reservation reporting using Power BI

Setting thresholds for purchasing reservations

Automated reservation purchases based on MDCO triggers

Chapter 12: Developing Metrics for Unit Economics

What is cloud unit economics?

Benefits of cloud unit economics

Indirect versus direct cost metrics

Tracking costs back to business benefits

Developing metrics for unit economics

Cost per patient encounter

Revenue per patient encounter

Gross margin per patient encounter

Cost per claim

Revenue per claim

Activity-based cost model

Chapter 13: Case Study - Implementing Metric-Driven Cost Optimization and Unit Economics

Index

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Notes:

Description based on publisher supplied metadata and other sources.

Description based on print version record.

ISBN:

9781801819879

1801819874

OCLC:

1377816098