DEVFINOPS FOR CLOUD VALUE
DevFinOps encapsulates cost management in every phase of cloud operation.
The cost management spans three significant phases:
Define the cost benefit
This takes place at the outset, in the cloud assessment phase. Business case plays a critical role in value identification and drives value-based architectures. The focus in this stage must be on carrying out a pre-planned cost analysis, considering key cost aspects such as different application and infrastructure architecture patterns, strategies for reporting, and waste management, mapping to the key operational targets. Scope for alteration to factor in unexpected change requirements from business or IT.
Realize the value
This kicks in during the cloud transition phase. Cloud value realization pervades all implementation phases right from strategic planning to operations. It covers the entire spectrum from identifying, designing, quantifying, prioritizing, communicating, measuring, and delivering value. It is key to establish the buy-in, build momentum, and chart the operational value realization plan.
A value realization office, established as part of an enterprise’s cloud transformation strategy, ensures fruition of potential benefits identified in the business case. Businesses need to ensure that the value realization office has the onus, freedom, and capability to define, design, and manage value. It should be able to foresee the business impact, forecast the ROI, and identify and mitigate risks.
A value realization office must maintain artifacts such as a living business case; a detailed benefit realization plan including the success criteria ownership; stakeholder accountability to measure, monitor, and report value; baseline; scorecard; and target KPIs. Its responsibilities should include:
- Measuring, tracking, and reporting on benefits and ROI realized.
- Conducting variance analysis of benefit realization plan.
- Identifying actions to maximize benefits realized.
- Providing updates to executives on a regular basis.
- Conducting a benefit and ROI validation analysis and reconciliation to plan.
Manage and optimize value
This comes into play during what we call the cloud steady state. Inform, optimize, and operate are key phases in the FinOps life cycle. The strategies and tactics of cost optimization vary widely based on the organization and maturity of cloud adoption. Cloud cost management has a series of iterative steps for various considerations by selecting the right trade-offs between architecture and performance metrics.