FinOps
FinOps Principles
Inform, Optimize, Operate. The culture of cost ownership.
FinOps Principles
FinOps isn't about "spending less." It's about getting maximum value for every dollar spent.
If spending 1,000 in revenue, that's good spending. If it just generates heat in a data center, it's waste.
The Iron Triangle
- Speed (Time to Market)
- Quality (Reliability)
- Cost
Engineers naturally optimize for Speed and Quality. FinOps forces Cost into the equation as a non-functional requirement, just like security.
The Lifecycle
1. Inform (Visibility)
You cannot fix what you cannot see.
- Goal: Show every team their daily spend.
- Action: Enable AWS Cost Explorer. Set up a Slack bot that posts: "Team Checkout spent $450 yesterday (↑ 15%)."
2. Optimize (Reduction)
Finding the waste.
- Rate Reduction: Pay less for what you use (Savings Plans, Spot).
- Usage Reduction: Turn off what you don't use (Resize EC2s, Delete unattached EBS volumes).
3. Operate (Process)
Make it stick.
- Action: Add "Cost Impact" to RFC templates. "This architecture will cost approx $200/mo."
Unit Economics
The holy grail. Don't just track "Total AWS Bill". Track "Cost per Transaction".
If your bill goes up 50%, but your user traffic went up 100%, you are actually becoming more efficient.