Cloud Migrations Fail. Here’s Why

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What happened this week:

• The Main Problems of Cloud Migrations

• New F2 KPIs Playbooks

• Mention of Honour: Special Announcement (you are involved)

• Job Offers

• Professional Spotlight with a Post of Community Favourites

Dropping great stuff & special community announcement. Enjoy yourself:

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Cloud Migration
Why Cloud Migrations Fail

Businesses are moving to the cloud. Not the other way around as some detractors say.

However, not everyone is migrating properly.

Almost everyone is doing it wrong.

Here are some reasons why cloud migrations fail and tips to avoid these pitfalls.

1. Misunderstanding the Shared Responsibility Model

• Cloud providers and users share security roles.

• Users often assume cloud services protect all their data.

• Users must secure data, access, and applications.

2. Struggles with Data Sovereignty

• Compliance with local laws is challenging.

• Different countries have different data rules.

• Poor planning can increase costs and delays.

3. Lack of Post-Migration Oversight

• Migration isn’t the end; management is ongoing.

• Monitor performance and manage access continuously.

• Control costs to avoid unexpected expenses.

If your company is currently migrating to the cloud, these are definitely some things to consider.

From my POV, rearchitecting solutions for using cloud-native architectures such as serverless is a crucial part.

Don’t be obsessed with using all the latest DevOps things once you have the cloud. Kubernetes is a great tool, but use it with care.

And please … DON’T DO LIFT & SHI*T.

In partnership with FinOpsly
AI Copilot for FinOps

End-to-End FinOps.

Data at the speed of thought.

FinOps Empowered by AI.

FinOps Foundation
7 FinOps KPIs Workbook Release

The FinOps Foundation KPIs Working Group has developed detailed Playbooks for 7 of the KPI cards. Read these and learn how to implement and track the KPIs.

Here are the new Playbooks:

1. Effective Compute Cost per vCPU

2. General Ledger Recharge Rate

3. Power Schedule Adherence Rate

4. % of CB Discount waste

5. % of CSP Cloud Costs that are Tagging Policy Compliant

6. % of Costs Associated with Untagged CSP Cloud Resources

7. Effective Savings Rate KPI

Start applying these KPIs today!

GreenOps
Energy Companies to Leverage FinOps + GreenOps

Energy and utilities businesses face pressure to adopt sustainable practices. Here’s how they can balance FinOps and GreenOps.

Understanding FinOps and GreenOps

• FinOps focuses on financial efficiency in the cloud.

• GreenOps integrates eco-friendly practices.

• The goal: Balance economy and environment.

Reasons

• Regulatory pressure demands reduced carbon emissions.

• Consumers prefer sustainable energy solutions.

• Investors prioritize Environmental, Social, and Governance (ESG) goals.

• Technology makes green solutions more accessible.

Steps for Transition

• Conduct energy audits for operational improvements.

• Set clear, measurable sustainability goals.

• Engage employees, customers, and investors.

• Invest in smart technologies and renewable energies.

Challenges and Solutions

• High costs but offer long-term savings.

• Resistance is tackled through education and involvement.

• Stay compliant with environmental regulations.

Adopting FinOps + GreenOps future-proofs businesses and supports a sustainable future.

Cost Allocation
10 Reasons Your Cloud Spending Is Out of Control

This a useful (and hilarious post, please check the memes) about reasons for cloud costs to get out of control.

Here are some reasons your cloud spending might be out of control and how to fix it.

24/7 Running of Development Environments

Neglecting Downgrade During Degrowth

Rapid Growth Can Increase Costs

Idle Resources Accumulate Costs

Overlooked Data Transfer Costs

Misuse of Reserved Instances

Overprovisioning Resources

Lack of Proper Governance

Poor Release Management

Shifting Usage Patterns

FinOps Success Stories
Akamai slashes cloud costs by 40% with waste reduction

Akamai has found a smart way to cut costs by 40%!

Here’s how they did it:

1. Automation and Right-Sizing: Akamai automated resource management to save costs. They adjusted resources based on real-time needs. This cut cloud waste by ensuring proper resource usage.

2. Reserved Instances: They used reserved cloud capacity at lower costs. This helped Akamai save up to 75%. Planning and reserving in advance paid off!

3. Continuous Monitoring: Akamai tracks cloud usage constantly. Then, they fix inefficiencies immediately when found. This prevents waste from happening again.

These strategies can help others reduce cloud waste, too!

Leadership
How Leadership Should Participate in FinOps

Let’s explore why leadership is crucial in managing FinOps effectively:

• Leadership Shapes FinOps Culture: It influences people’s attitudes and behaviors. Culture impacts FinOps success or failure.

• Cloud Waste Needs Attention: Unmanaged Cloud can waste up to 30% of resources. Companies often overlook this waste.

• The Importance of Accountability: DevOps teams should own Cloud Costs. They control the designs and operations.

• Challenges of FinOps: Make cloud waste visible and actionable. Align FinOps, Leadership, and DevOps teams.

• Planning and Tracking Costs: Track costs with tools, built-in or bought. Plan budgets a year ahead for better control.

Engaging leadership can unlock a successful FinOps strategy! Great article from Harry!

Kubernetes
$750K saved via proactive Kubernetes Cost Monitoring

Here’s how proactive cost monitoring helped Accrete AI save big:

• Inefficient DevOps practices slowed progress significantly.

• Kubernetes adoption improved cost efficiency.

• Kubecost was the chosen tool for tracking all expenses.

• Real-time metrics helped in spotting and fixing inefficiencies.

• This strategy resulted in $750,000 in annual savings.

Prioritize cost visibility for similar significant savings!

Mention of Honour presented by FinOpsly

End-to-End FinOps.

Data at the speed of thought.

FinOps Empowered by AI.

FinOpsly’s AI-powered platform helps optimize your cloud cost and performance by understanding the unique complexities of your cloud infrastructure.

🎖️ Mention of Honour
FinOps Connect & FinOps Weekly Join Forces to drive FinOps for Everyone

FinOps Weekly & FinOps Connect and FinOps Ninja join forces to drive an inclusive FinOps community for everyone.

FinOps Weekly will have a specific channel within FinOps Connect Slack.

There we can:

• Discuss about the edition

• Chat about anything related to the newsletter & FinOps

• Enjoy the FinOps Connect community, with Monthly Calls & amazing topic discussions

Join the Slack Channel using this link (please reply if it doesn’t work 🤡 )

From now on, members of FinOps Connect can receive the FinOps Weekly Newsletter by opt-in to their options.

Professional Spotlight
Borja Martinez

The Spanish Professional

One of my first contacts in the FinOps world. And one of the few I’ve met in person 😅 Really involved in F2 WG and in the FinOps ecosystem, specially in Spain. Someone to track as he shares valuable information on LinkedIn as well.

👩‍🏭 FinOps Job offers

Permanent links (i.e. FinOps Job site) and FinOps Job Offers online.

🏆 Quick Wins

Announcements

DoiT Appoints Steve Mills as Chief Revenue Officer

FinOps Europe event updates with new speakers! 🌍

Microsoft Unveils Azure Compute Fleet

Articles & Podcasts

Achieving Frugal Architecture using the AWS Well-Architected Framework guidance

How to save money on Azure Compute with Savings Plans

Cut Kubernetes costs with smart optimization strategies

6 FinOps KPIs and metrics to optimize cloud expenditures

FOCUS standardizes cloud costs to boost FinOps culture

FinOps Expert Critiques Sales Pitches, Offers Tips

🗳️ Poll of the Week

Let’s Collaborate!

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