Forecasting is the practice of predicting future spending, usually based on a combination of historical spending and an evaluation of future plans, understanding how future cloud infrastructure and application lifecycle changes may impact current budgets and influence budget planning and future cloud investment decisions.
This capability also involves collaboration between stakeholder teams like Finance, Engineering, and Executives to build agreed upon forecast models and KPIs from which to establish budgets that align with business goals.
Unfortunately, there is no one forecasting method that fits all situations.
Cloud spend is variable which is inherently difficult to predict. Specifically engineers can start workloads at any time typically without having to go through a procurement process.
WHERE ARE ORGANIZATIONS IN TERMS OF MATURITY
Most respondents indicated they were still working to improve accuracy of their forecasted spend with organizations that had a forecasted spend within a 5% variance of their actual cloud spend were also in the segment operating at a FinOps Run maturity.
Measures of success are represented in the context of cloud costs and may include one or more key performance indicators ( KPI ), describe objectives with key results ( OKR ), and declare thresholds defining outliers or acceptable variance from forecasted trends.
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Alison McIntyre, Cloud FinOps Lead at Lloyds Banking Group, discusses what it feels like to start the FinOps Certified Professional course, thoughts on cloud-native application migrations, and the impact of risk and regulations.
Chevron’s cloud environment currently consists of applications and servers on-premises and in Azure – with the vision to migrate a much as possible to Azure.
He has been doing AWS cost management since 2017. This was initially unstructured but is becoming more structured with regards to budgeting.