“We’d love to have you join our team,” he said. Eeks! I screamed in my head. You did it, Joanne!
I happily accepted the role on the spot, hung up the phone, and this time really screamed.
One week later, I started my first day as the senior content marketing manager at CloudBolt.
Now don’t take my giddy excitement for inexperience—this is by no means my first rodeo. I’ve done content marketing at tech companies for quite some time now (10 years, to be exact) and have managed topics such as digital transformation, cloud computing, and AI across multiple industries. I can write technical articles, produce in-depth webinar series, and interview thought leaders like the best of them.
There’s just one problem: I don’t know anything about FinOps.
The Meaning of FinOps
When I first heard the term “FinOps,” I naturally assumed it was short for “financial operations,” which entails managing financial transactions, budgeting, and accounting within an organization. I then considered the word “fintech” and thought perhaps it was related to financial technology innovations like digital payments or blockchain. But to my surprise, FinOps is nothing of the sort. The name is actually a portmanteau (or what I’d like to say, a mashup) of “Finance” and “DevOps.” But DevOps is a common methodology for software development—what does that have to do with finance?
To get to the bottom of my confusion, I visited the FinOps Foundation for its official definition, which reads as follows: “FinOps is an operational framework and cultural practice which maximizes the business value of cloud, enables timely data-driven decision making, and creates financial accountability through collaboration between engineering, finance, and business teams.” The definition also accompanied a comprehensive framework including principles, personas, domains, and capabilities. Before me was an entirely untapped universe—and oh, was I diving in.
A few days later—with multiple moments coming up for air—I think I finally understand. Rather than simply managing money, FinOps is about making money. It’s taking a strategic and agile approach to cloud spend and making real-time proactive decisions that produce the highest return on investment for the business. With this approach, the cloud functions as less of a cost center that keeps the rest of the business running and more of a profit center that directly pours more money into the business so it not only runs but grows. What do you think—am I on the right track?
Learning from the Best at FinOps X
Luckily for me, my education journey isn’t stopping any time soon. In fact, I’ll be getting a 2-day crash course when I make a pit stop at FinOps X, an annual conference hosted by the FinOps Foundation, in San Diego from June 19 to 22. Along with end-user practitioners, subject matter experts, and thought leaders, I’ll be soaking in the real-world FinOps stories and best practices from companies leading the way in innovation.
Here is my list of top sessions that I want to attend:
- Journey to the Center of FinOps with Duolingo, Instructure, and Ticketmaster
- FinOps Across Public Cloud and On-Prem
- Maximizing FinOps Education Impact: Insights from Walmart and the FinOps Foundation
- Navigating FinOps: Building a Lasting Culture for Financial Success
- Applying FinOps to Gen AI
- Navigating New Intersections and Trends: FinOps, AI, and Sustainability – Microsoft
- How Cloud FinOps Brings Value to AI Investments – Google Cloud
And of course, I’m not going to miss the panel that our chief technology officer Kyle Campos is hosting on Thursday, June 20, Adopting FinOps: Advanced Tips & Tactics.
While I might be joining the party a little late, I’m glad to be here at a time when FinOps is evolving before our eyes. There’s still much to do in this space and learn from one another. I’ll be furiously taking notes at FinOps X, but if you see me, be sure to tap me on the shoulder and say hi! I’d love to meet you, hear your story about journeying into FinOps, and have you be part of mine.
Imagine this: A cost anomaly is detected in your environment. You receive an automatic alert that the appropriate team has been notified to take immediate action. In just a matter of minutes, the issue is resolved, and AI and machine learning begin ingesting the data and further training the system. You sit back, take a sip of coffee, and dive into more strategic work.
Pretty cool, right? This vision represents an ideal future of FinOps automation—where company culture, operations, and technology are so aligned that insight-to-action occurs in minutes, sometimes even seconds!
As it stands today, however, the insight-to-action process can take weeks or months. That’s because the current state of FinOps automations is more like a series of episodic human activities than true continuous automation. FinOps practitioners still use spreadsheets or disparate tools to manually pull and aggregate data from various cloud providers, reconcile discrepancies, and analyze costs. Each step, from identifying cost-saving opportunities to implementing optimizations, is interrupted by approvals, reviews, and coordination among multiple stakeholders. This fragmented approach is extremely time-consuming and prone to inaccuracies.
Traditional FinOps Automation
To further illustrate this, consider the typical FinOps workflow broken down into four main steps: Acknowledge, Assign, Approval, and Action.
- Acknowledge: The process begins with acknowledging a cost-saving opportunity, which involves sifting through vast amounts of data. This data collection is often manual and time-consuming, creating the first significant delay.
- Assign: Once an opportunity is identified, it must be assigned to the appropriate team or individual. This step adds another layer of communication and coordination, often requiring input from multiple departments such as finance, engineering, and operations, which further slows the process.
- Approval: Before any action can be taken, the proposed optimization must undergo an approval process. This involves reviewing the potential impact, ensuring alignment with business objectives, and obtaining sign-offs from senior management or finance leaders. These approval workflows are typically managed through systems like ServiceNow, JIRA, or email, introducing additional delays as requests sit in queues waiting for review.
- Action: Finally, once approvals are in place, the assigned team can implement the optimization. However, even at this stage, execution can be delayed by the need to coordinate with other teams, schedule downtime, or verify changes.
Each of these steps introduces pauses and waiting periods, creating a disjointed, stop-and-go process that significantly delays the implementation of cost-saving measures.
The Right, Shift-Left, Approach
So how do companies overcome the roadblocks they’re facing in FinOps automation? The answer is clearly not to offload work to FinOps or DevOps teams themselves, which only adds to the unrealistic burden of managing an ever-growing complexity of cloud environments manually. Instead, it is shifting resolution left to advanced technology solutions that are designed to be the force multipliers to achieve the scale, accuracy, and automation required to truly solve advanced cloud cost problems such as waste reduction, chargeback/show back, unit economics, and optimized workload recommendations at the point of provisioning.
CloudBolt’s Augmented FinOps solution is designed to address these challenges head-on by transforming episodic FinOps automation into a continuous, efficient, and impactful process. With our new capabilities, CloudBolt customers can leverage the following:
- Unified View and Proactive Recommendations: Cost and usage data across all cloud providers are aggregated into a single, unified view. This comprehensive perspective enables FinOps leaders to see the big picture and drill down into specific areas of interest. By leveraging the unified data, the solution provides proactive cost optimization recommendations tailored to the organization’s unique environment.
- AI/ML-Driven Insights and Intelligent Automation: AI and machine learning identify inefficiencies and automatically recommend the best course of action, reducing manual intervention. For example, if an idle server is detected based on predefined rules, the system can automatically shut it down or reconfigure it, saving costs and improving efficiency.
- Automation of Key Processes: By pre-configuring robust automation workflows using multi-level logic and adaptable rules, FinOps practitioners no longer have the burden of manual tasks. This drastically shortens the insight-to-action time from weeks or months to mere minutes or hours, allowing organizations to quickly realize cost savings.
- Enhanced Collaboration and Transparency: Seamlessly integrates with existing enterprise ecosystems, including tools like Slack, JIRA, and ServiceNow. Improves collaboration between finance and engineering teams by providing clear, actionable insights and facilitating communication. The result is improved transparency and alignment among all stakeholders.
Continuous Automation with Augmented FinOps
To revisit the FinOps workflow illustration from earlier, here’s how the process looks like now with CloudBolt’s Augmented FinOps in action:
- Acknowledge and Assign: The steps of acknowledging cost-saving opportunities and assigning tasks are fully automated. The system continuously monitors cloud environments, identifies inefficiencies, and flags opportunities for optimization without requiring manual intervention. This automation ensures that opportunities are promptly recognized and routed to the appropriate workflows, eliminating delays associated with data collection and manual assignment.
- Approval: Once an optimization opportunity is identified and assigned, the system can significantly automate the approval process, where needed. Predefined rules and criteria can codify approvals for routine optimizations, while more complex or high-impact changes can be escalated for manual review. This approach accelerates the approval process, ensuring that only necessary human interventions are required.
- Action: After approval, the system can execute the optimization actions automatically. For instance, if the system identifies underutilized storage resources, it can automatically resize or decommission them based on predefined rules. This automation minimizes the need for manual execution and coordination, allowing optimizations to be implemented swiftly and efficiently.
At scale, these automated steps result in enormous savings and waste reduction, moving from simply sporadic gains to an ongoing, cumulative pile of benefits.
While we may not yet be soaking in FinOps’s perfected state of automation, CloudBolt’s Augmented FinOps moves us one step closer to the collective vision. By drastically reducing insight-to-action lead time, eliminating manual toil, and enhancing collaboration, our new service advisor experience empowers organizations to maximize their cloud ROI and achieve seamless, efficient cloud operations.
To learn more about CloudBolt’s Augmented FinOps, talk to us at FinOps X or visit cloudbolt.io/demo today.
Since Google released it to the open-source community ten years ago, Kubernetes has quickly become a cornerstone technology for orchestrating and managing software containers and microservices. According to a Cloud Native Computing Foundation (CNCF) survey, Kubernetes is used in 96% of global businesses, and its adoption rate is not slowing down.
Despite its widespread adoption and undeniable benefits, Kubernetes poses significant challenges in resource and cost management. The inability to monitor organizational usage or optimize a cluster’s resource utilization and allocation at scale leads to a staggering amount of cloud waste—about 47% of companies’ cloud budgets, as revealed by a StormForge survey. These challenges are not just hurdles, but pressing issues that demand immediate attention.
CloudBolt solutions are used by FinOps teams worldwide that strive to maximize the value of their cloud investments. Through our extensive interactions with these teams, we’ve witnessed the intricate complexities and critical challenges of managing costs within Kubernetes environments—challenges that conventional tools struggle to address effectively.
Recognizing the need for a transformative solution, we formed a technical partnership with StormForge earlier this year. By combining StormForge’s intelligent machine learning capabilities with CloudBolt’s Augmented FinOps offerings, this collaboration offers a powerful solution that enables users to manage Kubernetes resources with precision and autonomy.
Understanding Traditional Kubernetes Resource Management
At its core, Kubernetes utilizes a set of mechanisms to control how a cluster allocates and consumes resources. A big part of this system is the concepts of CPU and memory ‘requests’ and ‘limits,’ which allow users to isolate container resources. Requests guarantee that a container gets a certain amount of resources, helping Kubernetes schedule pods effectively across nodes. Limits prevent a container from consuming more than its fair share of a resource, which can affect other containers running on the same node.
Despite its potential, Kubernetes often falls short in efficiency largely due to the complexity of managing resource requests and limits. Here, we explore three common approaches to Kubernetes resource management, each with its own set of drawbacks, highlighting the need for a more intelligent, automated solution.
- Non-specification of requests
While most developers know that CPU and memory requests exist in Kubernetes, many are unaware of how to set them carefully or why it is crucial. Instead, they usually focus on simply getting their applications running. This approach leads to an entire host of performance and reliability problems such as unstable environments where applications do not receive the resources they need, causing crashes or slowdowns during peak loads.
- One-size-fits-all approach
Organizations that experience the problems resulting from the first approach will then adopt a one-size-fits-all approach, which simplifies management in the short term but causes significant inefficiencies in the long term. Such an approach fails to consider the unique requirements of different applications or workloads. Developers, whose primary concern is the performance of their applications, tend to request more compute and memory than necessary which can quickly lead to significant overspending.
- Manual tuning of workloads
Finally, organizations that understand the need to set appropriate values for each cluster will tune their Kubernetes workloads manually. Doing so, however, requires a large amount of engineering time and resources to individually assess each application or service and meticulously adjust its resource needs. This process is particularly problematic at scale and must happen continuously, as resource needs change over time. It cannot be a set-it-and-forget-it solution, which makes it both time-consuming and prone to inefficiencies.
Machine Learning for Kubernetes Resource Management
StormForge and CloudBolt’s joint solution offers a new transformative approach to automating and optimizing Kubernetes resource management in real time. With its advanced machine learning, StormForge analyzes observability data and makes recommendations for container CPU and memory settings to optimize resource consumption and ensure cost efficiency and application performance.
How it works
StormForge’s solution integrates seamlessly into existing Kubernetes environments using a straightforward one-click installation process. Upon installation, a comprehensive analysis of observability data from your Kubernetes clusters begins. Here’s a step-by-step breakdown:
- Data Ingestion: StormForge ingests metrics from the Kubernetes cluster (kube-state-metrics and cadivsor). This includes CPU usage, memory demands, and other critical performance metrics.
- Analysis and Recommendations:
- Machine Learning Model Training: Using historical data, StormForge trains machine learning models to understand patterns and accurately predict future resource needs.
- Resource Optimization Recommendations: Based on the analysis, the system generates recommended values for CPU and memory, focusing on optimal resource allocation for cost and performance.
- Automatic Deployment:
- Code Integration: Below is an example of how a Kubernetes deployment YAML might be automatically adjusted based on StormForge’s recommendations:
apiVersion: apps/v1
kind: Deployment
Metadata:
name: nginx-deployment
Spec:
replicas: 3
selector:
matchLabels:
app: nginx
template:
metadata:
labels:
app: nginx
spec:
containers:
name: nginx
image: nginx:1.14.2
resources:
requests:
cpu: 100m # Adjusted from initial higher value
memory: 200Mi # Optimized based on usage analysis
limits:
cpu: 200m
memory: 400Mi
- Automated Patching: Recommendations are applied directly to deployments via automated patches, ensuring that configurations are always optimal.
- Control and Customization:
- Adjustment Control: Administrators can control how aggressively the machine learning model optimizes resources, balancing cost savings with performance needs. Users can prioritize cost, reliability, or a balance of the two, allowing for customization based on specific operational goals and constraints. For example, while applying more frequent recommendations is better for savings and performance, some users choose to deploy changes less often to prevent pod churn. Users can create bounds to control min and max recommendations for requests and limits.
- Feedback Loop: Continuous feedback from ongoing operations refines the models, ensuring the recommendations improve over time.
Outcomes
The StormForge solution integrated into CloudBolt’s Augmented FinOps platform automates Kubernetes resource management, offering a scalable, machine learning-based approach that outperforms traditional methods in every aspect. It’s not just easy to use and continuously automatic, but also highly accurate. Customers can expect to save an average of 50% with StormForge, a significant amount considering the potential cost of Kubernetes for medium to large enterprises. As Mark Piersak, U.S. Bank vice president of container platform solutions, attests, the value of StormForge is undeniable: “The overall net savings on capacity has given us tremendous cost savings.”
Conclusion
As Kubernetes’ use continues to rise, clear cost visibility and accurate allocation control are more important than ever. StormForge and CloudBolt’s partnership ensures that Kubernetes clusters, along with the rest of the cloud, are not only clearly factored into cloud spending but optimized for maximum cloud ROI. Sign up for a demo to see the solution in action!
StormForge and CloudBolt will be at the FinOps X Conference in San Diego on June 19 to 22. Visit us at booth G8 to learn more about our solution!