Financial Hosting – This guide covers AWS Cloud Financial Management (CFM) completely from the basics of CFM to the best practices you can use for cloud financial success.
When companies move to the cloud, many people often ignore the cost and instead focus on innovation, speed and flexibility. The assumption is that the cloud is inherently less expensive than on-premises infrastructure. As organizations expand their cloud computing operations, they are quickly realizing that the same features that make the cloud attractive and flexible can push utility bills over budget. Many struggle to find a balance between cloud innovation and cost. Strategic organizations on AWS saw the need for Cloud Financial Management due to these challenges. Although the concept is still new, its results have been positive, not only for large companies but also for small and medium enterprises. This guide covers AWS Cloud Financial Management (CFM) – from the basics to how you can use it to increase cloud cost savings, revenue, profitability, productivity and operational resilience. What is Cloud Financial Management? Cloud Financial Management is the process of identifying, measuring, tracking and optimizing cloud costs. It includes processes and tools that enable organizations to manage their online experience – in a way that maximizes their investment in the cloud. Why is this important? Unexpected cloud usage remains one of the biggest barriers to realizing business value. In a research study conducted by IDG, cloud computing users admitted that their online computing activities were frequently affected by their rising utility bills. According to 40% of businesses surveyed, lack of adequate cost control was the main barrier to getting value from the public cloud. This is because cloud computing has already been adopted by more than two-thirds of organizations across all industries. Many have focused so much on cloud innovation that they have overlooked the real cost implications of adding cloud resources from scratch. That’s what Cloud Financial Management is trying to fix. The goal of this strategy is to maintain a good balance between improving the customer experience and controlling the costs of using cloud resources. Cloud Financial Management is not only aimed at increasing cloud costs, but also resource utilization and scaling. Cloud Financial Management is not just about reducing cloud costs. There is only one goal to reduce cloud costs. It can also improve business agility, operational stability and employee productivity. In 2020, 451 Research surveyed 500 business decision makers. The company found that organizations that fully implemented CFM increased revenue (67%), profitability (64%), employee productivity, and operational resilience. The study was conducted in collaboration with Amazon Web Services (AWS), the world’s largest public cloud service provider. Among the results were: When companies practiced CFM on AWS for 2-3 years, they saw a 51% reduction in cloud billing 60% reduction for those with more than 5 years of AWS cloud financial management participating in Interesting AWS. Let’s talk more about it. What is AWS Cloud Financial Management? This approach targets CFM specifically for organizations that host applications, data, and other workloads in the Amazon Web Services (AWS) public cloud. Its goal is to help these organizations plan, manage and optimize their cloud costs in the AWS public cloud infrastructure. AWS Cloud Financial Management is also suitable for companies that are building cloud-native applications, moving some of their workloads to the cloud, or expanding their use of public cloud services. The AWS platform offers a variety of features, cost tools and best practices that can help with that. For example, by leveraging the right capabilities of AWS , teams can allocate the right amount of resources to specific infrastructure or application components to increase business value indicators, such as productivity and better customer experience, while reducing AWS costs . Cloud Financial Management in AWS is an ongoing process. AWS billing is also based on usage. Therefore, the more efficient your cloud workload is, the fewer resources you will need to run it – and therefore, the lower the operating cost. What are the four main areas of AWS Cloud Financial Management? AWS enables companies to SEE where costs are coming from, RUN operations with minimal surprise costs, PLAN for flexible cloud usage, and KEEP COSTS AND SAVINGS and increase business value. In AWS, Cloud Financial Management covers three aspects: user experience, capabilities and better tools/resources. Using them, you can: Manage cloud financial planning Forecast and budget costs Use effective billing for cost control Reduce your AWS bill with AWS pricing optimization In other words, AWS Cloud Financial Management is about forecasting, planning budget, monitor and manage cloud usage. But as many organizations discovered, not everyone was happy with their amazing AWS bill. What are the challenges of AWS Cloud Financial Management? In addition to poor cloud cost visibility, understanding AWS billing and overcoming endless labeling are some of the challenges of implementing Cloud Financial Management in AWS. Many companies do not understand how AWS comes up with their monthly AWS bill, for example. Now, picture this: Instead of providing actionable insights to help businesses understand the what, where, who, and why of their cloud usage, this AWS invoice is more like a software document . Conversely, using a system like , you can break down costs into key metrics like cost per customer, per product, per feature and more. With this detailed, easy-to-digest cost view, you’ll be able to determine which features are the most expensive to run and maintain, so you can consider including them in your premium rates or eliminating them. a cost-per-customer analysis can also help you determine how much it costs to support a particular customer, as shown below: When you have this level of cost information, you can identify which customers you want to talk to about a demo. ‘you are using more resources than you expected when you first brought them in or negotiated a price with them. But if you want to see the basics, for now, you can get a quick sense of costs and usage with tools like AWS Cost and Usage Report and AWS Cost Explorer, like this: Credit: AWS However, to get this perspective. in AWS, DevOps and finance teams need to create and implement a close AWS labeling strategy. If you’ve ever tried to create an integrated and comprehensive labeling program, you know that it can be one of the most challenging parts of AWS cost control. Read more about how to create an AWS tagging strategy step by step here. Cloud Financial Management Vs. FinOps: What’s the Connection? As you may have seen from reading our FinOps guide , Cloud Financial Management and FinOps share many characteristics. How are the two different then? Are they connected or do they run alone? FinOps, short for Financial Operations, is a combination of processes and tools that seek to balance efficiency, innovation, software quality, and cost savings in a changing cloud consumption model. However, tracking cloud costs doesn’t have to be your primary goal. Instead, you can plan your FinOps to prioritize business productivity criteria, such as delivery speed, and cloud costs as a secondary consideration. Regardless of which priority sequence is next, the main goal of FinOps is to provide business stakeholders with deep cost insight and visibility into network operations. Using that insight, you can then make strategic decisions about what can be improved to increase your profit margin. The FinOps Foundation summarizes all of this as a cycle of three basic steps: Inform Improve Operations – we cover this in detail here. As the FinOps Foundation itself points out, FinOps is short for “Cloud Financial Operations”, “Cloud Financial Management”, or “Cloud Cost Management”. Benefits of Cloud Financial Management: How Can CFM Help Organizations? By properly implementing cloud financial management the following benefits are available: 1. Track your cloud usage With Cloud Financial Management, you can track not only your service usage bills, but also the performance, roles and resources involved. This should enable you to track a range of cost factors associated with your cloud environment. You can use this insight to identify specific programs, projects, teams, and departments that are driving your cloud costs. Budgeting is another area where you can apply this understanding. You can capture and review past spending patterns and cost information to help you predict future spending patterns. 2. Cloud cost optimization Once you identify key metrics from your cloud billing and operations, CFM can help you manage, optimize or reduce cloud-related costs. Cost optimization involves identifying and eliminating unused resources, redundant connections, and wasteful processes. But if you don’t have enough visibility into your cloud resources, you won’t know where you can pull strings to reduce costs without sacrificing system performance. But a holistic view can help you identify many options to reduce costs. With this granular cost insight, you can easily organize and integrate disparate resources, low-cost packages, share resources across departments, or even create a cost-effective hybrid system. 3. Create and stick to it
Financial Hosting
Blog hosting, windows hosting, cheapest hosting, reseller hosting, hosting sites, wordpress hosting, cpanel hosting, shared hosting, webinar hosting, hosting offers, hosting, hosting company
