Linked e-resources
Details
Table of Contents
Cover
Title Page
Copyright and Credit
Dedicated
Contributors
Table of Contents
Preface
Part 1: Inform
Chapter 1: Bringing Visibility and Allocating Cost
Technical requirements
Tools used in this book for implementing FinOps for Microsoft Azure
Azure CLI
Power BI Desktop
Azure Cost Management + Billing
Azure Advisor
Azure Monitor
Azure Pricing Calculator
What is the Microsoft Azure Well-Architected Framework?
Creating a baseline using the WAF Cost Optimization assessment
Cost allocation from an accounting point of view
What is ABC allocation?
Cost allocation in Azure for FinOps
Cost allocation using the account, management group, and subscriptions hierarchy
Cost allocation using resources tags
Exploring cost analysis in the Azure portal
Identifying the offer type for your subscription(s)
Accumulated and forecasted cost
Cost grouped by service
Cost grouped by management group
Cost grouped by tag
Creating, saving, and sharing custom cost analysis views
Summary
Chapter 2: Benchmarking Current Spend and Establishing Budgets
Technical requirements
The on-demand and elastic nature of Azure
Developing KPIs for consistent reporting
Strategic and operational KPIs
Leading and lagging KPIs
Why do you need KPIs?
Defining, measuring, and reporting KPIs
Benchmarking between teams
Creating and managing budgets in Azure cost analysis
Production marketing website budget
Marketing development budget
Marketing production budget
Overall Marketing department budget
Tracking the budget spend
Creating and managing alerts in Azure cost analysis
Budget alerts
Spending anomaly alerts
Summary
Chapter 3: Forecasting the Future Spend
Technical requirements
Introduction to forecasting
Getting your Azure usage data.
Setting up the Cost Management connector for Power BI
Forecasting based on manual estimates
Forecasting based on past usage
Advanced forecasting by application
Identifying usage charges by application
Fully loaded costs in forecasting
Summary
Chapter 4: Case Study - Beginning the Azure FinOps Journey
Case study - Peopledrift Healthcare
Challenges
Objectives
Solution
Benefits
Summary
Part 2: Optimize
Chapter 5: Hitting the Goals for Usage Optimization
Technical requirements
The project management triangle method for goal setting
Setting OKRs or KPIs
OKR examples
KPI - tagging by business unit
KPI - cost avoidance for unattached disks by business unit
KPI - Azure Hybrid Benefit utilization by business unit
KPI - storage accounts with hot, cool, and archive tiers
Understanding Azure Advisor recommendations for usage optimization
Accessing Azure Advisor using the portal
Accessing Azure Advisor using the CLI
Top 10 usage optimization targets using custom Azure workbooks
Target 1 - 98% of all your resources must be tagged
Target 2 - right-sizing underutilized virtual machines
Target 3 - enabling Azure Hybrid Benefit for Windows and Linux VMs
Target 4 - right-sizing underutilized SQL databases
Target 5 - enabling Azure Hybrid Benefit for SQL databases, managed instances, and SQL VMs
Target 6 - upgrading storage accounts to General-purpose v2
Target 7 - deleting unattached discs
Target 8 - deleting unattached public IPs
Target 9 - Azure App Service - using the v3 plan with reservations and autoscaling
Target 10 - Azure Kubernetes Service - using the cluster autoscaler, Spot VMs, and start/stop features in AKS
Trade-offs of cost versus security, performance, and reliability
Cost versus security
Cost versus performance.
Cost versus reliability
Summary
Chapter 6: Rate Optimization with Discounts and Reservations
Technical requirements
Commitment-based discounts in Azure
The Microsoft Enterprise Agreement
The Microsoft Azure Consumption Commitment (MACC)
Identifying reservation opportunities for your workload
Using the Azure Cost Management (ACM) Power BI app
Scenario 1 - you are purchasing VM reservations for the first time
Scenario 2 - you have existing reservations but want to purchase a new one for another Region and VM SKU
Understanding Azure Advisor recommendations for reservations
Reservation purchase and cadence
Purchase cadence
Reservation details, renewal, savings, and chargeback report
Reservation details
Auto-renewal
Reservation savings and chargeback report
Reservation exchange and cancellation
Exchange reservations
Cancel (return) a reservation
Summary
Chapter 7: Leveraging Optimization Strategies
Technical requirements
Introducing Azure Spot market
Estimating Spot VM discounts
Spot VM and VM Scale Sets
Spot VM caveats
Eviction type and policy
Limitations
Pricing history and eviction rate details
Architecting the workload to handle eviction
Spot Priority Mix
Discounting strategies with savings plans
Savings plan versus reserved instances
Purchasing a savings plan
Writing a business case for cost optimization
Business case: Orion business analytics platform cost optimization
Summary
Chapter 8: Case Study - Realize Savings and Apply Optimizations
Case study - Peopledrift Inc., a healthcare company
Challenges
The solution
Benefits
Summary
Part 3: Operate
Chapter 9: Building a FinOps Culture
Technical requirements
Establishing a CoE for cloud cost management
Motivating engineering teams to take action.
Incentivizing the team
Penalizing the team
Automated tag inheritance, governance, and compliance
Automated VM shutdown and startup
Automated budget actions
Third-party FinOps tools
Apptio Cloudability
CloudHealth by VMware
Cast.ai
Summary
Chapter 10: Allocating Costs for Containers
Technical requirements
FinOps challenges for containerized workloads
ACI cost allocation
Introducing Kubecost
AKS cost allocation
Showback and chargeback shared AKS clusters
Cost optimization recommendations for AKS clusters
Manage underutilized nodes
Resizing local disks
Reserved instances
Right-sizing your container requests
Remedying abandoned workloads
Right-size persistent volumes
Summary
Chapter 11: Metric-Driven Cost Optimization
Technical requirements
Core principles of MDCO
MDCO and reservation reporting using Power BI
Setting thresholds for purchasing reservations
Automated reservation purchases based on MDCO triggers
Summary
Chapter 12: Developing Metrics for Unit Economics
Technical requirements
What is cloud unit economics?
Benefits of cloud unit economics
Indirect versus direct cost metrics
Tracking costs back to business benefits
Developing metrics for unit economics
Cost per patient encounter
Revenue per patient encounter
Gross margin per patient encounter
Cost per claim
Revenue per claim
Activity-based cost model
Summary
Chapter 13: Case Study - Implementing Metric-Driven Cost Optimization and Unit Economics
Case study - Peopledrift Inc., a healthcare company
Challenges
Objectives
Solution
Benefits
Summary
Index
Other Books You May Enjoy.
Title Page
Copyright and Credit
Dedicated
Contributors
Table of Contents
Preface
Part 1: Inform
Chapter 1: Bringing Visibility and Allocating Cost
Technical requirements
Tools used in this book for implementing FinOps for Microsoft Azure
Azure CLI
Power BI Desktop
Azure Cost Management + Billing
Azure Advisor
Azure Monitor
Azure Pricing Calculator
What is the Microsoft Azure Well-Architected Framework?
Creating a baseline using the WAF Cost Optimization assessment
Cost allocation from an accounting point of view
What is ABC allocation?
Cost allocation in Azure for FinOps
Cost allocation using the account, management group, and subscriptions hierarchy
Cost allocation using resources tags
Exploring cost analysis in the Azure portal
Identifying the offer type for your subscription(s)
Accumulated and forecasted cost
Cost grouped by service
Cost grouped by management group
Cost grouped by tag
Creating, saving, and sharing custom cost analysis views
Summary
Chapter 2: Benchmarking Current Spend and Establishing Budgets
Technical requirements
The on-demand and elastic nature of Azure
Developing KPIs for consistent reporting
Strategic and operational KPIs
Leading and lagging KPIs
Why do you need KPIs?
Defining, measuring, and reporting KPIs
Benchmarking between teams
Creating and managing budgets in Azure cost analysis
Production marketing website budget
Marketing development budget
Marketing production budget
Overall Marketing department budget
Tracking the budget spend
Creating and managing alerts in Azure cost analysis
Budget alerts
Spending anomaly alerts
Summary
Chapter 3: Forecasting the Future Spend
Technical requirements
Introduction to forecasting
Getting your Azure usage data.
Setting up the Cost Management connector for Power BI
Forecasting based on manual estimates
Forecasting based on past usage
Advanced forecasting by application
Identifying usage charges by application
Fully loaded costs in forecasting
Summary
Chapter 4: Case Study - Beginning the Azure FinOps Journey
Case study - Peopledrift Healthcare
Challenges
Objectives
Solution
Benefits
Summary
Part 2: Optimize
Chapter 5: Hitting the Goals for Usage Optimization
Technical requirements
The project management triangle method for goal setting
Setting OKRs or KPIs
OKR examples
KPI - tagging by business unit
KPI - cost avoidance for unattached disks by business unit
KPI - Azure Hybrid Benefit utilization by business unit
KPI - storage accounts with hot, cool, and archive tiers
Understanding Azure Advisor recommendations for usage optimization
Accessing Azure Advisor using the portal
Accessing Azure Advisor using the CLI
Top 10 usage optimization targets using custom Azure workbooks
Target 1 - 98% of all your resources must be tagged
Target 2 - right-sizing underutilized virtual machines
Target 3 - enabling Azure Hybrid Benefit for Windows and Linux VMs
Target 4 - right-sizing underutilized SQL databases
Target 5 - enabling Azure Hybrid Benefit for SQL databases, managed instances, and SQL VMs
Target 6 - upgrading storage accounts to General-purpose v2
Target 7 - deleting unattached discs
Target 8 - deleting unattached public IPs
Target 9 - Azure App Service - using the v3 plan with reservations and autoscaling
Target 10 - Azure Kubernetes Service - using the cluster autoscaler, Spot VMs, and start/stop features in AKS
Trade-offs of cost versus security, performance, and reliability
Cost versus security
Cost versus performance.
Cost versus reliability
Summary
Chapter 6: Rate Optimization with Discounts and Reservations
Technical requirements
Commitment-based discounts in Azure
The Microsoft Enterprise Agreement
The Microsoft Azure Consumption Commitment (MACC)
Identifying reservation opportunities for your workload
Using the Azure Cost Management (ACM) Power BI app
Scenario 1 - you are purchasing VM reservations for the first time
Scenario 2 - you have existing reservations but want to purchase a new one for another Region and VM SKU
Understanding Azure Advisor recommendations for reservations
Reservation purchase and cadence
Purchase cadence
Reservation details, renewal, savings, and chargeback report
Reservation details
Auto-renewal
Reservation savings and chargeback report
Reservation exchange and cancellation
Exchange reservations
Cancel (return) a reservation
Summary
Chapter 7: Leveraging Optimization Strategies
Technical requirements
Introducing Azure Spot market
Estimating Spot VM discounts
Spot VM and VM Scale Sets
Spot VM caveats
Eviction type and policy
Limitations
Pricing history and eviction rate details
Architecting the workload to handle eviction
Spot Priority Mix
Discounting strategies with savings plans
Savings plan versus reserved instances
Purchasing a savings plan
Writing a business case for cost optimization
Business case: Orion business analytics platform cost optimization
Summary
Chapter 8: Case Study - Realize Savings and Apply Optimizations
Case study - Peopledrift Inc., a healthcare company
Challenges
The solution
Benefits
Summary
Part 3: Operate
Chapter 9: Building a FinOps Culture
Technical requirements
Establishing a CoE for cloud cost management
Motivating engineering teams to take action.
Incentivizing the team
Penalizing the team
Automated tag inheritance, governance, and compliance
Automated VM shutdown and startup
Automated budget actions
Third-party FinOps tools
Apptio Cloudability
CloudHealth by VMware
Cast.ai
Summary
Chapter 10: Allocating Costs for Containers
Technical requirements
FinOps challenges for containerized workloads
ACI cost allocation
Introducing Kubecost
AKS cost allocation
Showback and chargeback shared AKS clusters
Cost optimization recommendations for AKS clusters
Manage underutilized nodes
Resizing local disks
Reserved instances
Right-sizing your container requests
Remedying abandoned workloads
Right-size persistent volumes
Summary
Chapter 11: Metric-Driven Cost Optimization
Technical requirements
Core principles of MDCO
MDCO and reservation reporting using Power BI
Setting thresholds for purchasing reservations
Automated reservation purchases based on MDCO triggers
Summary
Chapter 12: Developing Metrics for Unit Economics
Technical requirements
What is cloud unit economics?
Benefits of cloud unit economics
Indirect versus direct cost metrics
Tracking costs back to business benefits
Developing metrics for unit economics
Cost per patient encounter
Revenue per patient encounter
Gross margin per patient encounter
Cost per claim
Revenue per claim
Activity-based cost model
Summary
Chapter 13: Case Study - Implementing Metric-Driven Cost Optimization and Unit Economics
Case study - Peopledrift Inc., a healthcare company
Challenges
Objectives
Solution
Benefits
Summary
Index
Other Books You May Enjoy.