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Cover image for Day 8: FinOps Objectives and Establishing Key Performance Indicators (KPIs)
Ibrahim S
Ibrahim S

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Day 8: FinOps Objectives and Establishing Key Performance Indicators (KPIs)

The objective of FinOps is to foster collaboration across finance, technology, and business teams to establish policies and processes that allow for the tracking, analysis, and optimization of cloud costs.

FinOps objective is maximize the business value of cloud spending by bringing financial accountability, transparency, and control to the variable cloud cost model.

  • Culture --> Collaboration
  • Goal --> Business value
  • Focus --> Real-time financial controls
  • Result --> More accurate financial forecasting

FinOps KPIs (Key Performance Indicators) are measurable metrics used to evaluate the effectiveness and efficiency of financial management processes, particularly in cloud financial management.

  • Reservation Coverage Rate
  • Resource Tagging Compliance
  • Idle Resource Reduction
  • Unit Economics Tracking
  • Migration Cost Savings
  • Resource Utilization Percentage

The different objectives of KPIs

  • Cost optimisation metrics
  • Utilisation Metrics
  • Performance Metrics

Read more KPIs

FinOps is successful when decisions are made from a business value perspective

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