From the course: Cert Prep: FinOps Certified Practitioner (FOCP)

Six principles of FinOps

From the course: Cert Prep: FinOps Certified Practitioner (FOCP)

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Six principles of FinOps

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- [Narrator] The six principles of FinOps. In previous sections, we talked a little bit about the six principles of FinOps. In this section, we're going to dive into each of the six foundational principles of FinOps. These principles serve as the guiding pillars for effective financial operations in the cloud. We will explore each principle uncovering their real world implications and how they can be applied to achieve specific results within the FinOps framework. One, teams need to collaborate. Understand that FinOps is a cultural shift. Breaking down silos between teams. Encourage finance, product managers and engineering teams to collaborate successfully. Learn from mistakes, and promote problem solving. Two, decisions are driven by the business value of cloud. Shift the focus from cost to business value of cloud spending. Maximize the value created by cloud investments. Make decisions with the business value in sight rather than just cost. Three, everyone takes ownership of their cloud usage. Recognize that cloud costs are directly related to usage. Promote accountability by pushing cloud spend ownership to individual engineers and teams. Equip teams with the information and guidance needed to manage cloud cost effectively. Four, FinOps reports should be accessible and timely. Embrace the need for realtime decision making in the cloud error. Ensure that FinOps data is readily available to those managing cloud resources. Focus on clean and properly allocated cost data to drive informed decisions. Five, a centralized team drives FinOps. Understand the role of a centralized FinOps team as cultural change. Drive best practices through education, standardization, and support. Centralized responsibility for rate optimization while empowering teams. Six, take advantage of the variable cost model of the cloud. Embrace the decentralized nature of cloud capacity planning. Base capacity decisions on actual usage rather than forward looking demand. Leverage cloud native services. The six foundational principles of FinOps provide a robust framework for successful financial operations in the cloud. These principles emphasize collaboration, business value driven decision making, ownership, accessibility, centralization, and the utilization of a variable cost model. By adhering to these principles, organizations can optimize their cloud spending, promote a culture of efficiency, and achieve tangible results in their FinOps journey. Understanding and applying these principles is essential for any practitioner looking to excel in the world of cloud financial management.

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