Optimising-the-Cloud-Business-and-Usage-Cost-Metrics-in-Cloud-Computing.pptx

Business cost metrics measure a company's overall expenses and financial health, while cloud usage cost metrics specifically track the spending on cloud resources like compute, storage, and networking

1. Nadar Saraswathi College Of Arts and Science Cloud Computing TITLE: Business cost metrics, Cloud usage cost metric By: S. SHARMILA II M. Sc

2. Optimising the Cloud: Business & Usage Cost Metrics in Cloud Computing Unlocking efficiency and strategic advantage in the cloud era.

3. Today's Roadmap: Unpacking Cloud Costs for Strategic Advantage 01 Why Cloud Cost Visibility? Understanding its critical role. 02 Traditional vs. Cloud Costs Bridging the CapEx/OpEx divide. 03 Key Cloud Usage Metrics Deconstructing pay-as-you-go. 04 FinOps: Unifying Perspectives Aligning finance and operations. 05 Optimisation Strategies Practical steps for cost reduction. 06 Real-World Success Indian case studies.

4. The Cloud Imperative: Why Cost Visibility is Crucial for Modern Businesses Escalating Cloud Spends Without visibility, cloud costs can quickly spiral, impacting profitability. Strategic Decision-Making Accurate cost data enables informed choices on resource allocation and project prioritisation. "What gets measured gets managed." Cloud financial management is no exception.

5. Understanding Traditional Business Cost Metrics: CapEx vs. OpEx in a Cloud Era Capital Expenditure (CapEx) Upfront investment in physical assets (servers, hardware). Depreciates over time. High initial cost, predictable long-term. Operational Expenditure (OpEx) Ongoing costs for services and consumables. Cloud computing primarily falls under OpEx. Pay-as-you-go model, highly scalable and flexible. The shift from CapEx to OpEx with cloud adoption changes how organisations budget and manage IT spend, making dynamic cost monitoring essential.

6. Introduction to Cloud Usage Cost Metrics: Pay-as-You-Go and its Nuances The core principle of cloud billing is paying only for what you consume. This offers flexibility but demands meticulous tracking. Resource Consumption Billing based on actual usage: CPU hours, GB of storage, data transfer. Variable Costs Costs fluctuate with demand, resource types, and geographical regions. Pricing Models Spot instances, reserved instances, and on-demand pricing impact final costs significantly.

7. Key Cloud Cost Metrics Explained: Compute, Storage, Networking, and Service Charges Compute Cost per virtual CPU hour, memory allocated, instance type. Often the largest component. Storage Cost per GB per month, type of storage (block, object, file), I/O operations. Networking Data transfer in/out, inter-region transfer, load balancer usage, IP addresses. Service Charges Costs for managed services (databases, serverless functions, AI/ML services), licenses, support plans. Each metric needs to be understood and monitored to effectively manage cloud expenditure.

8. Bridging the Gap: How FinOps Aligns Business and Cloud Usage Metrics FinOps is an operating model that brings financial accountability to the variable spend of cloud, enabling organisations to make business trade-offs between speed, cost, and quality. Collaboration: Fosters communication between finance, engineering, and business units. Visibility: Provides granular insights into cloud spending, attributing costs to business units and products. Optimisation: Drives continuous improvement in cloud efficiency and cost control. Culture: Instils a culture of cost consciousness and shared responsibility.

9. Strategic Optimisation: Practical Approaches to Control and Reduce Cloud Spends Right-Sizing Matching instance types and sizes to actual workload requirements. Reserved Instances/Savings Plans Committing to usage for discounts on compute and database services. Decommissioning Idle Resources Identifying and turning off unused or orphaned resources. Automation & Governance Implementing policies for resource provisioning and termination.

10. Case Studies: Real-World Examples of Cloud Cost Management in India Leading E-commerce Giant Implemented FinOps practices, reducing cloud spend by 20% through reserved instances and automated scaling, significantly boosting profit margins during peak sales. FinTech Innovator Leveraged spot instances for non-critical workloads and optimised database configurations, leading to 30% savings on compute costs and faster product launches. These examples demonstrate the tangible benefits of proactive cloud cost management.

11. Key Takeaways and Next Steps: Empowering Your Organisation for Cloud Financial Excellence Embrace FinOps: Integrate financial accountability with cloud operations. Monitor Continuously: Implement tools for real-time cost visibility. Optimise Proactively: Right-size, reserve, and eliminate waste. Foster Collaboration: Break down silos between teams. Let's schedule a deep-dive workshop to tailor these strategies to your organisation's unique needs.