The FinOps approach is gaining popularity in cloud computing, particularly in Microsoft Azure. FinOps is a portmanteau of finance and DevOps, that combines financial management, cloud governance, and cloud cost optimisation. FinOps helps organisations manage and optimise their cloud costs while still meeting their technical and business objectives. This ensures that organisations get the most out of their cloud investments.
Main FinOps enabling features in Azure
Azure provides a built-in feature called Cost Management, which includes Cost analysis, Cost alerts, Budgets and Advisor recommendations. These features allow you to monitor, analyse, and optimise cloud computing costs.
Azure Cost Analysis provides a comprehensive cost management solution, allowing organisations to have visibility into their cloud spending. Azure Cost can be tracked, analysed, and optimised using the cost management tool.
Azure Tags can be used to categorise different resources according to the environment, department, and business unit. This will help allocate costs accurately, identify high-cost areas, and optimise spending on a resource-based level.
Tags can be applied to resource groups and resources within them by defining custom policies, such as Inherit tags from the subscription.
Once all the resources are tagged you can use Cost analysis to view the real-time cost based on Scope, View, Time and select one or more tags.
Based on the values selected in Cost analysis we can generate cost reports and export them to storage accounts. The report data can be integrated with other systems like Power BI.
By scheduling exports, you can automatically publish raw cost data to a storage account on a daily, weekly, or monthly basis.
A daily schedule is set to export the data to a storage account in the following example.
We can also create a schedule to send cost reports to individual email addresses or distribution lists, as shown in the following example.
Cost Alerts and Budget
Azure Cost Alerts and Budgets allows organisations to set spending limits and receive alerts when budget thresholds are reached. With this feature, organisations can proactively manage and control cloud costs.
We can create an Azure subscription budget for a monthly, quarterly, or annual period.
There are two types of budget alerts we can create:
- Actual costs budget alerts
- Forecasted budget alerts
The following example uses a budget of 1500 pounds for subscriptions.
After we configure the budget amount, we can configure budget alerts for actual and forecasted budget alerts, as shown below.
Azure Advisor provides recommendations to optimise your Azure resources based on best practices and cost-saving opportunities. It offers insights and suggestions for improving performance, security, and cost-efficiency.
For further information about cost management tools and how to reduce your cloud expenses click here