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Principles

FinOps Principles are north stars that guide the activities of our FinOps practice. They’re developed by FinOps Foundation members, and honed through experience. These were initially proposed as part of the writing the Cloud FinOps book in Sept 2019 as a joint AWS announcement at CloudyCon. Now, they cover multiple clouds, and knowing how cloud services change every quarter it seems, they may change slightly over time as new experience is gained by all.

These principles are in no particular order, and they should be taken as a whole. We encourage members to understand and practice all of these principles.

Teams need to collaborate

  • Finance moves at the speed and granularity of IT
  • Engineering considers cost as a new efficiency metric
  • Continuously improve your practice to gain efficiency and innovation
  • Define governance and controls for cloud usage

Everyone takes ownership for their cloud usage

  • Empower feature and product teams to manage their own usage of cloud against their budget
  • Gain visibility into cloud spend at all levels
  • Track team-level targets to drive accountability

A centralized team drives FinOps

  • Centrally govern and control Committed Use Discounts, Reserved Instances, and Volume/Custom Discounts with Cloud Providers
  • Centralized discount buying process removes rate negotiations from engineering team consideration
  • Granular allocation of all costs, direct or shared, to the teams and cost centers responsible for them

Reports should be accessible and timely

  • Fast feedback loops result in more efficient behavior
  • Visibility helps determine if resources are under- or over-provisioned
  • Automation of resources drives continuous improvement

Decisions are driven by business value of cloud

  • Trending and variance analysis helps to understand why costs increased
  • Internal team benchmarking drives best practices and celebrates wins
  • Industry peer-level benchmarking determines how your company is performing

Take advantage of the variable cost model of the cloud.

  • Rightsizing instances and services help drive appropriate resourcing levels
  • Comparing pricing between services and resource types drives better decisions