AWS MAP Program AWS Migration Acceleration Program (MAP) is an outcome-driven, methodology-based comprehensive cloud program that helps accelerate your cloud migration and modernization journey. This program is crafted using AWS’s experience of migrating thousands of enterprise customers to the AWS cloud. How does the AWS MAP Program work? The AWS MAP Program has three stages: Readiness Assessment This stage is used to identify the capabilities required in a company for the migration and build a Total Cost of Ownership model to calculate the total costs the organization will incur for managing the workloads in the cloud. The step is essential for doing a like-to-like comparison of on-premises and on-cloud. Resource Mobilization The role of the mobilization stage is to tackle the cloud migration at an operational level, which includes dealing with the shortcomings and additional requirements that are identified in the assessment phase. Modernize and Migrate This stage includes executing the migration plans created in the previous stages. This stage includes working with the AWS Profession Services team and Migration Partners. Even though AWS provides the boilerplate framework, executing this process is tedious and critical. Third-party platforms such as Umbrella simplify this entire process and help you navigate AWS so that your organization is maximizing the benefits of AWS Cloud. Umbrella’s team consists of professionals who are highly experienced and experts in this domain.    Challenges with the AWS MAP program Although the AWS MAP program comes with a structured approach, there are many challenges you have to deal with. Business Objective Alignment The AWS MAP program mainly focuses on the execution side of migration, which might sometimes result in deviation from business objectives. Therefore, it is always important to align the migration process with business objectives. Umbrella’s team provides your organization with personalized guidance throughout the process and helps you migrate and manage the AWS cloud. Expertise and Time Commitment Cloud migration is a massive undertaking that requires highly qualified professionals with cloud migration expertise even while using the AWS MAP program. It is often wise to use a third-party platform like Umbrella with highly experienced DevOps engineers and Cloud Architects. This results in setting up a highly robust and scalable cloud deployment and freeing up time for your in-house engineers to work on your product rather than deal with the headaches of the migration process. Cost Optimization and Management If the migration is not done properly, it can result in massive unexpected costs. Andot provides an AWS Cost Monitoring program with anomaly detection and cost forecasting facilities. You can connect your AWS deployment to Umbrella’s cost-monitoring system within minutes. Security Security is a paramount consideration in any cloud infrastructure. Adhering to state-of-the-art practices is essential to safeguarding digital assets. This involves implementing robust encryption, access controls, regular monitoring, and staying abreast of emerging threats through continuous updates and employee training. A proactive and adaptive security strategy is crucial for maintaining the integrity and confidentiality of data in the cloud environment. Management and Training Migrating to the cloud from an on-premise system can often be challenging, especially if your team is accustomed to working with an on-prem system. Proper developer training and management strategies must be implemented for successful adoption. Using a third-party platform like Umbrella to manage your AWS deployments is often the best approach for a successful and optimized cloud adoption. Migration Complexity Large-scale enterprise cloud migration is an intricate task that requires thorough planning and close-to-perfect execution. Seeking help from professionals and industry veterans for this task is often a good strategy. Umbrella’s team comprises leading industry experts in the cloud migration process. Tracking and Managing Credits in AWS MAP Credit tracking and management in the AWS MAP program can be tricky due to the following reasons: Tagging Precise tagging of resources needs to be done to manage credits properly. Therefore, it is important to define clear tagging guidelines and automate this process as much as possible. Visibility and Reporting The first-party built-in reporting tools for the MAP program do not provide granular insights for detailed analysis. It is best to consider using a third-party tool like Umbrella’s Cloud Cost Management tool to get enhanced visibility and reporting of MAP credits. Usage Restrictions and Expiration AWS MAP credits generally have an expiration date therefore, it is very important to plan and prioritize the projects to derive maximum benefits from the credits. Stay Up to Date It is important to stay informed and up to date to keep up with any changes in the AWS MAP program’s terms and conditions at all times to ensure compliance. Seeking the help of professionals who deal with these programs and systems day in and day out is often the best approach. Enlisting the support of seasoned professionals well-versed in the intricacies of these programs and systems is a prudent approach. How to Optimize Cloud Costs using Umbrella Optimizing infrastructure costs is one of the core reasons to migrate to the cloud. Using an on-premise infrastructure has many direct and hidden costs associated with it, such as — hardware costs, maintenance costs, upgrade costs, human resource costs, etc. Hence, when you migrate to the cloud, it’s very important to reap the full benefits of the cloud and set up an infrastructure that is robust, highly scalable and cost-effective. Umbrella has partnered with the AWS ISV Accelerate program to optimize costs for AWS customers and is available on AWS Marketplace. Umbrella for Cloud Costs provides visibility and forecasting of your cloud costs. Companies that use Umbrella can save up to 40% on their annual cloud costs. Some key features of Umbrella for Cloud Costs are: Easy setup and integration. You can connect your AWS cloud to this product within minutes A central platform to visualize all cloud costs from different providers Custom dashboard creation and easy report export functionalities Anomaly detection and monitoring capabilities Alerting and notification functionalities that support — push notifications, email alerting, slack integration, page duty integration, and webhooks. Accurate cost prediction forecasts that help you to plan ahead of time   Check out Umbrella on the AWS marketplace to try our cloud cost management there for free!

Back in 2014, DevOps took the tech world by storm, and now we've got another game-changer: the rise of FinOps.  FinOps is stepping up as a key player, helping companies manage and optimize their cloud costs, shaping it into an investment in a company's financial health.   However, a significant challenge has emerged: the demand for skilled FinOps professionals far exceeds the supply. [embed]https://www.youtube.com/watch?v=nFvF9McYOgQ[/embed]   Lewis Cowell, co-founder of Optimized, the world's first FinOps recruitment agency, sat down with us to discuss the nuances of finding the right candidates for FinOps roles. He shares his own hiring experience along with insights into practical solutions for bridging this talent gap. “I have a deep interest in the FinOps space. It's like cloud meets investing.” - Lewis Cowell  Why FinOps Matters FinOps professionals play a pivotal role in managing and optimizing cloud costs. They are the bridge between finance and tech teams, ensuring that cloud spending is efficient and aligned with business goals. The role involves not just technology know-how, but also an understanding of finance and the ability to work collaboratively across departments.  The Talent Gap There's a significant demand for FinOps professionals, but finding the right talent is challenging. Lewis identified three main routes into FinOps: technical backgrounds (like DevOps, cloud engineers), finance backgrounds, and those in roles like procurement or IT asset management. The key is to blend these skills along with strong interpersonal skills.  “So many people come into the space from a multitude of different backgrounds and it makes it more difficult to recruit for but also widens the net at the same time. It's a paradox.” - Lewis Cowell Breaking into FinOps Getting certified in cloud service provider platforms and FinOps is crucial to understanding the role. Seek experience within your current company, asking to work on upcoming cloud cost projects. And never forget the power of networking to learn, share insights, and connect with the community.    The Challenge of companies  Recruiting for FinOps roles is complex due to the unique blend of skills required. Besides looking for the perfect hire, companies should consider investing in training and developing internal talent.  They need to be actively involved in the FinOps community, keeping an eye out for potential candidates and building relationships. Moreover, they need to foster a culture of understanding the importance of FinOps as essential to the company's financial and operational success.   Future Prospects FinOps is more than just a job title; it's a strategic investment in a company's future. It requires a special blend of skills and a deep understanding of both technology and finance. As Lewis shared, the field is growing rapidly, but there's a significant talent gap. For those looking to break into FinOps, now is the time to build your skills and network. And for companies, investing in FinOps talent is not just a cost-saving measure, it's a way to future-proof your business. Special thanks to Lewis, for your valuable insights and for leading the way in FinOps recruitment with Optimized. Your expertise is shaping our future of cloud cost optimization. Watch the whole interview for more on his  Lewis’s journey and his expert tips.

Our solution (Umbrella) and Cloud Ctrl Cost are two popular choices for a FinOps solution. With the increasing number of businesses moving to the cloud, having a third-party cost management solution like FinOps can handle all the challenges and maximize productivity in the cloud. So, which platform offers a complete FinOps solution? Let's dig deeper and analyze who provides the best solutions, technology, and support to make the most of your  FinOps culture. Company Profiles Background of Umbrella We are a certified FinOps platform that helps you nail FinOps with a holistic and enhanced approach. Utilizing our features gives you complete coverage across all FinOps domains, leveling up your FinOps practices to maximize business value. We have a strong and dedicated team of top industry experts who are here to support our clients in achieving ultimate success in the cloud. Overview of Umbrella's Cloud Cost Monitoring solution as a FinOps tool We are proud to be the sole certified FinOps platform designed to measure and propel success across leading public cloud providers.  Our features aim to be top-notch for FinOps capabilities, ensuring nothing is ever overlooked when it comes to managing cloud finances.       100% visibility: Our dashboard provides all the necessary factors for cloud operations, such as KPIs, baselines, flexible cost allocation, advanced reporting capabilities, and savings recommendations. Access to our recommendations: We have a comprehensive library of over 50 easy-to-implement savings recommendations tailored for AWS, GCP, and Azure.  Market-leading tools in business monitoring: Our generative AI platform, with products like CostGPT and ML-based algorithms, lets you dive deeper into cloud costs than ever before. It's like having superpowers to understand your expenses!         Background of Cloud Ctrl Cost Cloud Ctrl Cost enables organizations to make informed decisions, detect cost overruns, and optimize cloud spending. Its real-time cost anomaly and waste detection capabilities help prevent accidental overspending and drive profitability. Overview of CloudZero's cloud cost monitoring solution as a FinOps tool Cloud Ctrl was initially created as an in-house solution by SixPivot, an Australian software development consultancy. Although it is compatible with AliCloud, AWS, Azure, and GCP platforms, it lacks the comprehensive capabilities required for an effective FinOps solution. Uncertified platform: The FinOps Foundation has not recognized it as a genuine FinOps platform. Limited Cost & Usage Meterics: Exclusively AWS, K8s, and Snowflake. Consultant-based: There are no dedicated leadership or engineering teams. Instead, a team of 40 people offers core consultancy services and oversees two unrelated products. Breakdown of FinOps features Cloud Computing   Umbrella Our advanced features help streamline procurement and pricing decisions by providing cost and usage data visibility across multiple platforms. We offer real-time anomaly detection, predictive analytics, and automated recommendations to optimize cloud spend.   Comprehensive Cost & Usage Metrics: Unlike other solutions, Umbrella supports a wide range of platforms, allowing users to gain insight into their entire cloud infrastructure and make informed decisions about cost optimization. MSP-oriented: Our product features are designed with MSPs in mind. They enable optimizing cloud savings by automating operations such as advanced cost allocation, reporting, billing rules, custom charge types, credit management, and SP/RI re-allocation. Real-time monitoring: Automated real-time anomaly detection ensures timely alerts and actions to keep your cloud investments on track. Cloud Ctrl Cost Cloud Ctrl Cost supports all major public cloud providers but lacks in competitive features, especially for MSPs.  Minimal access to Cost and Usage: Users cannot access cost and usage insights for Azure MCA, K8s, or metrics. Rate calculation and grouping with Cost & Usage Explorer are also unavailable. Limited view: Cannot support multi-cloud features like cloud view, reports, or dashboards. Lack of MSP billing options: It offers general MSP billing but does not include advanced features like multiple rule settings, margin history view, and reporting for a comprehensive cloud cost management overview. Umbrella or Cloud Ctrl Cost: Which provides the FinOps capabilities you need? recognized and doesn’t give users a comprehensive view of your cloud costs. This begs the question, how can businesses truly scale if you’re not given the FinOps tools to perform at maximum potential in the cloud?  After exploring Umbrella and Cloud Ctrl Cost in depth, only one provider offers the tools, support, and MSP features for organizations to make an impact in their cloud with FinOps practices. With us, you won't find any gaps in cloud costs, and we have the FinOps-verified badge to prove it!  Partnering with Umbrella means you'll have comprehensive visibility into KPIs and baselines, flexible cost allocation, advanced reporting capabilities, and savings recommendations.  And if you identify as an MSP, we’ve got you covered, too!   

MSPs using CloudHealth are in for an abrupt start to 2024. VMware, which acquired CloudHealth, is ending its partner programs. Instead, they're rolling out the exclusive Partner Program, starting from February 5, 2024. The switch will impact solution providers, resellers, and cloud services partners. With this new selective partner program, MSPs face fresh challenges in meeting the latest standards. This announcement brings uncertainty for MSPs like WWT CEO expressed last week, but we're here to provide you with all the info in our FAQ to make savvy decisions about your FinOps platform.  Exploring multiple FinOps tools, including Umbrella, can offer your clients diverse insights, enhanced capabilities, and a tailored approach to their unique needs. Consider the advantages of incorporating Umbrella into your toolkit, empowering you to provide comprehensive and specialized FinOps services to meet a spectrum of client requirements during this transition. Q1. What is the uncertainty about?  The Broadcom Advantage Partner Program will replace VMware's partner programs starting February 5, 2024, after Broadcom acquires VMware. The program will invite select partners based on certain criteria. However, uncertainty remains among CloudHealth partners regarding the program's invitees and specific details. FYI: Umbrella provides an open and accessible platform, eliminating uncertainties associated with exclusive partner programs and ensuring equal business opportunities. Q2: How does Umbrella help MSPs? Umbrella acts as a strategic partner, offering stability and clarity in a time of uncertainty. Our proactive support and commitment to customer success make Umbrella a reliable choice for businesses navigating FinOps. Q3: What advantages does Umbrella bring to MSPs? Umbrella's one-of-a-kind feature for MSPs facilitates seamless management and scaling of existing clients. This innovative approach ensures operational efficiency, proactive issue resolution, and enhanced security, providing MSPs with a robust solution for their ecosystem. Our AI-powered solution eliminates the manual work of handling cloud costs, empowering MSPs to efficiently manage and scale their existing clients.  Q4: Can Umbrella accommodate the scale of MSP operations? Absolutely! We offer an exclusive rebilling structure tailored specifically for MSPs. Our system automates cost management through action discounts and refunds, reallocating Reserved Instances (RIs) and Savings Plans (SPs), assigning billing tiers, and recalculating data. This enables greater scalability, ensuring optimal efficiency and effectiveness. Q5: What makes Umbrella's Cloud Cost Optimization a better alternative for MSPs than others? Umbrella's Cloud Cost Optimization offers deeper insights, actionable recommendations, real-time incident detection, a user-friendly interface, advanced Kubernetes visibility, AI-powered forecasting, and a focus on immediate value and business context. These features make it a great alternative to your FinOps tool, especially for MSPs handling complex and ever-changing cloud environments. The best part? These advanced tools are competitively priced compared to others, offering better margins without sacrificing performance. Q6:  For MSPs considering a transition to a different provider, how can Umbrella assist in facilitating the migration process? Umbrella offers a seamless transition, guaranteeing uninterrupted business operations. In the face of Broadcom's uncertain clarity and potential disruptions, Umbrella stands out as a secure and reliable solution for all your monitoring requirements. Our team ensures a smooth migration process, minimizing downtime and potential disruptions and delivering a seamless experience that keeps your business running smoothly. Don’t identify as an enterprise? Umbrella ensures that smaller businesses receive the same level of attention, cost-effectiveness, and support as larger enterprises. Q7: How many partners and MSPs have used other FinOps tools before partnering with Umbrella? We've seen tremendous adoption with hundreds of accounts and MSPs, such as Automat-IT, Protera, CloudZone, ACA Group, and TeraSky, using our innovative FinOps solution. You can discover our case studies and learn how organizations leverage Umbrella technology. Click here. Q8: Do you support Rebilling and Invoice Generation? Absolutely! Our system seamlessly supports rebilling and invoice generation, one of our biggest strengths. This, along with our competitive pricing, is why MSPs choose Umbrella. Q9: Are you supporting all Clouds? Yes! Umbrella is designed to support all major Cloud platforms. AWS, Azure, and GCP are the most popular cloud platforms among our MSP partners, and most of our in-house recommendations relate to these clouds. Q10: What are your main strengths? Umbrella's Cloud Cost Optimization boasts four key strengths that set us apart in the market: Intelligent Recommendations: Our platform leverages advanced algorithms to provide intelligent recommendations tailored to your business needs. These recommendations go beyond basic insights, offering actionable suggestions to optimize your cloud spending effectively. Advanced Machine Learning Capabilities: Umbrella harnesses the power of cutting-edge machine learning to deliver predictive and proactive insights. This means we don't just analyze historical data; we anticipate future trends and potential cost-saving opportunities, enabling you to stay ahead in the dynamic landscape of cloud services. Innovation with CostGPT: Umbrella takes innovation a step further with CostGPT, our revolutionary tool powered by the latest advancements in language models. CostGPT enhances the user experience by providing contextualized insights, cost projections and answering complex queries related to your cloud costs. It's like having a cost optimization expert at your fingertips, making your decision-making process even more informed and efficient. Advanced Anomaly Detection: Umbrella's anomaly detection capabilities are at the forefront of the industry. Our advanced algorithms identify irregular patterns and potential cost anomalies in real-time, alerting you to deviations from the norm. This proactive approach allows you to address issues swiftly, minimizing potential financial impacts and optimizing your cloud spending. In essence, our main strengths lie in understanding your current cloud cost landscape and guiding you toward strategic decisions that positively impact your bottom line. Umbrella is not just a tool; it's a partner in your journey to maximize efficiency and cost-effectiveness in the cloud. Q11: Do you support the multi-vendor approach during Transition? Absolutely! We are API-first, and our partners often adopt a multivendor approach, seamlessly transitioning at their own pace. Q12: What is your business model? Umbrella operates on a tier-based pricing model that ensures every dollar spent doesn't cause a different charge. Our pricing is transparent and attractive, significantly improving your margins. Lets Talk! Q13: What regions are you supporting? Umbrella supports businesses in all regions with multicurrency capabilities, providing comprehensive Cloud Cost Optimization worldwide. Q14: Does Umbrella have a partner program? Of course! Umbrella is proud to have a robust Partners Program. We currently serve hundreds of accounts under our partners, including MSPs with over 3000 active users monthly. If you're interested in exploring partnership opportunities, contact us now and let us showcase our platform. We're not just a solution; we want to be a part of your success! Have additional questions or concerns? We understand that this is a significant change to your practices and operations for MSPs. Hopefully, our answers above give insight into what to expect with Umbrella’s partner program. However, this information only touches the surface of what’s to come. So please feel free to reach out. We’d be happy to assist you in ensuring a seamless transition from your current tool to an advanced FinOps solution. Let’s talk! Already intrigued by our Cloud Cost Optimization?  Click below to schedule a personalized demo and witness firsthand how Umbrella empowers MSPs with innovative AI tools, one-of-a-kind features, and cost-effective solutions. Make the proactive choice for your business's future with Umbrella.  

Your FinOps foundations are down in your company's cloud (woohoo!), but what comes next? How can you boost your MVP success in the cloud with your FinOps strategy? In this blog post, we'll briefly dive into the three phases of your FinOps for top-notch implementation from beginning to end. Need a refresher on setting up an MVP FinOps framework for your cloud? In part 1 of our series, we'll show you how it's done! For deeper insights into the FinOps lifecycle phases, part 2 of our series is now available! Recap: Establishing strong foundations in each FinOps phase with Umbrella’s model Before we dive deep into the details of maximizing your FinOps lifecycle, here's some basic info to catch you up! The MVP FinOps approach focuses on three key components: people, processes, and tools. MVP FinOps team (people) This MVP approach starts small with a cross-functional team, gradually building the FinOps practice by addressing specific challenges. Key elements include identifying an organizational home, assembling the right team members, and engaging stakeholders for initial success. MVP operating model (processes) This MVP FinOps approach prioritizes critical capabilities for building an early-stage FinOps practice. This includes visibility, cost allocation, and tagging strategy for accountability. Other aspects like cloud usage optimization or chargeback & finance integration can be addressed later. Simplify and enhance agility through the inform, optimize, and operate lifecycle phases. MVP KPIs (tools) This MVP approach simplifies the measurement of FinOps efficiency by focusing on key metrics. This allows for an assessment of the current impact of FinOps efforts and immediate insights. Initial KPIs for measuring FinOps efficiency and tooling considerations will be discussed. Now that the FinOps MVP for the cloud has been simplified, one can delve deeper into maximizing the benefits of each lifecycle phase (inform, optimize, and operate). The Inform phase What is the Inform phase in the FinOps lifecycle? The goal is to ensure everyone understands the financial impact of their decisions and can make informed choices. This phase involves regular updates, reports, discussions, decision-making meetings, and setting budgets and forecasts based on gathered information. Develop a strategy using tags or hierarchies to improve visibility and create a detailed data set. Establish a showback model for better accountability, providing reports highlighting cost drivers and irregularities. Collaborate with the finance team to create a rolling forecast model accommodating seasonal variations and data anomalies. Next iterations of the Inform phase Evaluate your cost allocation strategy To effectively manage costs in the cloud, allocating as much of your spending as possible is important. This involves understanding how you use cloud services, assigning costs to the right owners, and creating accurate budgets and forecasts. However, many organizations struggle with mapping data to financial reports and ensuring compliance with tagging.  As businesses and cloud usage grow, allocating shared costs and maintaining tagging compliance becomes even more challenging. By using automated tagging enforcement and retroactive spend tagging, these issues can be addressed. Validate your forecasts Accurate cloud spending forecasting is important for FinOps teams to make informed decisions. We here at Umbrella use a simplified metrics strategy that includes a Forecast Accuracy KPI to measure the difference between forecasted and actual costs. Our goal is to keep this difference under 20%. Consider FinOps solutions with ML-based automated forecasting capabilities if accurate forecasts are challenging. Once accurate rolling forecasts are achieved, new budgeting initiatives can be implemented based on forecasts.  Regularly communicating these initiatives to engineering teams is important while balancing budget adherence with other business objectives. Tackling Kubernetes code allocation Managing costs and allocating resources in containerized environments can be difficult. To optimize resource usage in Kubernetes, organizing resources by application, assigning namespaces and labels, and using consistent resource tagging are important.  Share cost and usage information with relevant teams and stakeholders and regularly review dashboards to promote cost optimizations. Additionally, consider utilizing third-party FinOps solutions to provide enhanced visibility and forecasting for Kubernetes, ultimately driving return on investment (ROI). Looking for data visualizations and a more in-depth exploration of the Inform phase? Check out the guide! The Optimize phase What is the Optimize phase in the FinOps lifecycle? In the optimize phase, the aim is to identify opportunities for more effective spending rather than just reducing costs. In the initial iteration, the focus was on: Exploring rate optimization opportunities Disregarding active usage optimization by the engineering team Implementing anomaly detection mechanisms to identify irregular cloud spend and usage Next iterations of the Optimize phase Increased emphasis on rate optimization The process of seeking commitment purchase opportunities must be standardized to optimize rates. By understanding each program and measuring performance, it is possible to define purchasing strategies and maximize savings.  To minimize waste and costs, commitment utilization and on-demand coverage will also be evaluated. These key performance indicators ensure effective coverage and utilization, leading to financial success in the cloud. Reduce cloud waste through active optimization Cloud providers charge for unused services, leading to overprovisioned and orphaned organization resources. Decentralized optimization by teams can help reduce cloud waste, but active engagement and data-supported recommendations are needed.  Implementing an LPI called Percentage of Waste, based on open savings opportunities, enables the optimization of cloud billing. Daily/weekly/monthly scans identify usage reduction options. Improve time to address cost anomalies Cloud cost anomalies refer to unexpected increases in cloud spending compared to historical patterns. Identifying these anomalies in real-time poses challenges for FinOps teams, often leading to delays in resolution. The goal is to optimize the anomaly management process to resolve issues within 24 hours.  This process involves three phases: time to detection, time to root cause, and time to resolution. By implementing automated workflows and leveraging solutions like Umbrella, FinOps teams can react quickly with contextual alerts to address cost anomalies promptly. Looking for data visualizations and a more in-depth exploration of the Optimize phase? Check out the guide! The Operate phase What is the Operate phase in the FinOps lifecycle? In the Operate phase, processes are built, and strategies are implemented to achieve FinOps goals. In the first iteration of this phase, the following was done: Embedded FinOps in the organization Made decisions on whether to act on rate and usage optimization Onboarded our early adopters Implemented basic mechanisms for anomaly detection Implemented simplified KPIs strategy Evaluated native and third-party FinOps tools What is the Operate phase in the FinOps lifecycle? Onboard additional engineering teams In the first iteration, early adopters were onboarded for the FinOps implementation. Now, additional engineering teams who have already been identified are ready to be onboarded. The basic concepts of FinOps will be introduced, and regular showback reporting will be implemented to highlight cost drivers and anomalies.  Through iterative integration, a partnership that aligns with them early in development will be built, avoiding wasted effort and frustration. Implement budgeting initiatives Accurate forecasting enables the implementation of new initiatives like budget management for teams. Budgets play a crucial role in project approval in large companies and can be utilized by FinOps for cost optimization. Showback reports should link costs to actual and forecasted spending, highlighting variances and comparisons to budgeted costs.  Furthermore, FinOps teams should guide engineering teams in making tradeoffs between budget adherence and other business objectives. Execute your commitment purchasing strategy In the optimize v2 phase, a commitment-based discount strategy was introduced. To implement it effectively, follow these steps: set a purchasing cadence, start with small initial purchases, allocate commitment costs wisely, and continuously measure and iterate. As you gain experience and confidence, increase your purchase frequency and size. Use FinOps tools for improved reliability and consistency Consider opting for a third-party SaaS solution instead of building your own automation. These solutions, particularly FinOps platforms, combine automation and FinOps best practices to accelerate your progress through the FinOps lifecycle. They offer normalized billing data, automated calculations, cost allocation tools, pre-built showback reports, advanced forecasting, budgeting capabilities, anomaly detection, and optimization recommendations. Looking for data visualizations and a more in-depth exploration of the Operate phase? Check out the guide! The best things come in three It's crazy that 70% of companies go over their cloud budgets. That's why adopting a FinOps MVP approach can help improve efficiency and reduce cloud costs. That's why we're here to help you save. With Umbrella, not only can anyone discover ways to cut down on cloud expenses with advanced recommendations, but you can also get educational resources like our MVP series to start implementing your FinOps successes ASAP. Get the entire series here! Adopting a FinOps MVP Approach: The FinOps MVP Adopting a FinOps MVP Approach: Maturing Your MVP FinOps Practice   

Did you miss our latest roundtable on AI-driven FinOps? Don’t worry, we got you! In this recap, we'll review what our FinOps experts discussed and the key takeaways from the roundtable discussion. The challenges of delivering successful FinOps Managing DevOps teams and cloud billing in government environments. The future of FinOps  The role of automation, predictive analytics, and AI Not much of a reader? Watch it on demand! Who's in our roundtable?   Sean Donaldson, CTO of Protera: Sean is an experienced technology professional who has served as the CTO for Proterra for 25 years. With a focus on AWS and Azure, Sean excels in handling critical workloads and ensuring efficient cost management.    Corné van der Vaart, Technical Cloud Project Manager of A.C.A. Group: A.C.A. primarily focuses on software development for public and private sector companies. They also work with various cloud environments, following the MSP approach. Recently, they made significant investments in our Finops offering to meet market demand.   Nir Raz, Cloud FinOps Director of Nice: Nir is a cloud FinOps director with a diverse background in the field and has played a key role in growing the Cloud FinOps Group. While working across various business units with complex workloads, Neil has worked on-prem and cloud-native solutions on platforms like AWS and Azure. His expertise lies in financial aspects, such as predicting cloud costs and budgeting, while developing internal BI tools and advanced KPI dashboards.    Inbal Tadeski, a Data Scientist at Umbrella: Inbal leads a team responsible for building sophisticated analysis tools to extract valuable insights from cost data. Her work includes anomaly detection, forecasting, and smart recommendations to help users reduce costs. Oh, and not to brag, but she was our innovative project CostGPT, which lets users explore cost data using natural language effortlessly.    Ran Blumenfeld, FinOps & Customer Success at TeraSky: An experienced leader in FinOps for over two decades, excelling in the public Cloud industry with a strong background in customer success and product management.   Melissa Abecasis, Presenter and Customer Success Director at Umbrella: Melissa has expertly managed cloud costs for eight years, preserving trust while taming expenses. Melissa helps MSPs scale using Umbrella and is an amazing roundtable host!   The challenges of delivering successful Finops In this section, we explored the traditional practices of businesses before transitioning to the cloud and the challenges of adopting this new model. The past Organizations invested heavily and expected long-lasting results, disregarding dynamic cost management in IT resources. Budget planning sessions were the norm. However, the shift to public cloud platforms like AWS or Azure is changing the game. Today’s challenges Setting up a server in AWS or Azure may seem simple, but the real challenge lies in architecting it right. This includes severe complexities like Proper security Seamless compliance Governance Backups Discover recovery    [caption id="attachment_15165" align="alignnone" width="624"] Anomaly detection on cloud costs[/caption] [caption id="attachment_15166" align="alignnone" width="624"] Spike on cloud costs - anomaly detection[/caption] Optimizing cost management Cloud cost management poses challenges due to various approaches and strategies. Finding the intersection between security architecture, cost governance, and business objectives drives the need for a FinOps organization. “It's not just a matter of numbers; it requires an artful approach to find that perfect equilibrium.” - Sean Donaldson Challenges in Dealing with DevOps Teams  We asked our expert, Nir, who has successfully set up a FinOps team at his company, about the main challenges when dealing with DevOps teams. It’s a roller coaster ride Defining waste reduction approaches, modernization, and architectural improvements is easy. The challenge lies in ensuring the availability of development and DevOps teams when needed. The problem with being dependent on the availability and coordination of the teams To avoid big cost setbacks in the cloud, it's crucial to spot anomalies in time. As Nir mentioned, a single query that generates too many logs can seriously mess up operations. Manual FinOps falls short in today's world. A cost management solution can address this issue through automation, identifying key factors for quantifiable action.   [caption id="attachment_15167" align="alignnone" width="624"] Umbrella's cloud cost management tool[/caption]   Cloud Billing in Government Environments Corné's company, A.C.A. Group, serves a primarily government consumer base and mentions that many of them find cloud billing challenging, and many don’t want to embrace FinOps. "We regularly meet with clients to discuss their cloud bills and any potential spikes. However, where we are based in Belgium, Finops is not widely recognized by many companies or governmental departments. It's challenging to explain how improvements can lead to cost reductions or alternative options." -Corné van der Vaart   True cost optimization requires architectural changes One major issue that Corné sees in this sector is that cost optimization isn't a priority. It often gets overlooked until problems start popping up. So, their customers assume that the architectural design already considers financial optimization when they renew the project.  🚨 Alarming stat🚨: Corné says about 90% of clients are skeptical of making changes for cost savings alone. The future of Finops Now that the challenges have been discussed, let's dive into how modern FinOps can help control and optimize costs in the cloud. Leveraging  AI-driven methods and machine learning As we've seen, manual methods don't do the trick when dealing with real-time anomalies. As our Data Scientist, Inbal relayed: “We need to alert users correctly, avoiding false positives while ensuring important events are not missed. We aim to automatically alert and help users explore anomalies, identifying the root cause.” Machine learning solutions To speed up cloud operations with a FinOps perspective, machine learning, and generative AI will have a major role in comprehending data clearly and insightfully. Hint: Our Cost GPT tool allows customers to explore data using natural language. It's simple, intuitive, and all in one place.  Inbal discussed how predictive analytics and forecasting can amp up your FinOps game. “Forecasting helps with planning and budgeting, giving you confidence in your decisions. We are also working on focused-based recommendations, such as suggesting saving plans based on your current usage.” -Inbal Tadeski   By leveraging AI and machine learning, proactive analytics can provide alerts and advance warnings about exceeding budgets and guidance on saving money. This combination of intelligent capabilities can deliver significant value to customers.   Upcoming Umbrella’s goals The perk of having Umbrella’s chief scientist on the roundtable is getting an inside look at what the company prioritizes for the future! This includes: Utilizing predictive analytics: cost-saving suggestions can be made, including recommending a more suitable savings plan and anticipating potential cost reductions. Advance alerts budget overruns: We aim to bring great value to customers by using AI and machine learning to manage costs proactively.   AI predictive models and the role of the FinOps engineer  With all the exciting advancements that AI and automation bring, we can expect great efficiency in cloud costs. But what about the human role in these operations?  Inbal acknowledges the power of these tools, but full automation will take time.   “This process should be a learnable loop. We're not currently trying to perform actions on your behalf. In the future, we might let customers add resolutions and actions they're sure of in certain cases.” -Inbal Tadeski Balancing human knowledge with AI  Our experts believe that AI will improve by making recommendations and predictions. This will allow us to focus more on reducing cloud waste and finding ways to modernize and plan commitments. Balancing human knowledge with AI    Cloud architects are hesitant to adopt new tools or use advanced AI, thinking they can handle it themselves. But having them figure out costs is a waste of resources. Your cloud architect or the FinOps engineer should not be trying to determine how much their GP three costs.    The FinOps engineer and the AI rely on each other. AI assists the FinOps role, but customization and supervision require a human touch.   Sean mentions the importance of keeping analytics and AI in constant interaction.   “FinOps analysts play a crucial role at the intersection of artificial intelligence (AI) and human intelligence. While AI enhances their effectiveness, human involvement remains essential.” -Sean Donaldson Final thoughts  To truly grasp the ins and outs of FinOps, the challenges, and the opportunities, it's best to hear from the experts themselves. They can share their knowledge and opinions based on what they've experienced in their field. Our goal was to bring together this roundtable so there could be a candid discussion on what they see and expect in AI-driven FinOps. The biggest win: Seeing companies update and create new features to enhance their client's cloud efficiency while saving time and money. (Check out our CostGPT!) The biggest struggle: Getting clients to see the importance of cost optimization in the cloud and being proactive about it.  Have further questions about your FinOps journey or how AI-driven insights can help? Get in touch!   

Upcoming specific new AWS regulations will significantly impact how businesses handle their AWS operations. Starting from January 15, 2024, AWS will no longer permit the resale of discounted Reserved Instances (RIs) bought from the Amazon EC2 Reserved Instance Marketplace. This update aligns with AWS's service terms, particularly Section 5.5, which explicitly prohibits the resale of discounted RIs. What implications can AWS customers expect, and how can Umbrella help with solutions to this new change? Let's dive deeper and find out. What are Amazon EC2 Reserved Instances? Amazon EC2 Reserved Instances offer a cost-effective solution for businesses to save money in the cloud. Typically, when businesses utilize Amazon's cloud for programs and data storage, they are charged based on usage. But if you know you'll need that computer power for a while, you can opt to "reserve" it. This means you can use a specific amount of Amazon's computer power for a set period (1 or 3 years), and in return, Amazon gives you a discount. Current policy allowing the resale of Reserved Instances in the marketplace The current policy allows Amazon Web Services (AWS) customers to resell their RIs in the Reserved Instance virtual Marketplace without restrictions. Changes in the New AWS Policy Update In the past few weeks, specific customer types have been informed that starting January 2024, they will be unable to sell Standard RIs on the marketplace. These customers can sell their RIs until the end of December 2024. Who does this rule apply to? It applies to customers who have qualified for the following discount programs. Because they are receiving a discount on consumption (including RI purchases), AWS does not allow RIs to be sold on the marketplace. You’ll be affected if any of the following criteria apply to you: RI Volume Discounts When the value of RI purchases reaches $500k per year, customers are eligible for an RI Volume discount of 5% on any future RI purchase. This discount increases to 10% when the value of all purchases reaches $1m per year. Enterprise Discount Program (EDP) Customers under an Enterprise Discount Program have committed to a specific yearly spend and receive a flat discount on their usage for most services, including RI purchases). Specific Customers Members of the Solution Provider Program, APN partners, and MSPs who receive a discount on consumption from AWS. How the new policy change impacts AWS customers Previously, AWS customers could sell unused Standard RIs or buy Standard RIs from others. However, the new policy update will prohibit the resale of Discounted RIs. According to the update, customers retain ownership of the RIs until expiration. Potential repercussions include: Reduced Flexibility: Customers who don't need the full reservation term cannot recoup the funds spent on those RIs. This could make RIs less appealing to some users, especially those uncertain about long-term computing needs. Decision Making: Customers may need to be more cautious and precise in purchasing RIs, understanding that they're making a more binding commitment without the fallback option of reselling. Potential Shift to Savings Plans: As a response, businesses might gravitate more towards AWS Savings Plans, which offer similar cost-saving benefits but with greater flexibility. (Which we'll cover in the next section.) What are AWS Savings Plans? AWS Savings Plans offer discounted prices on AWS usage (such as EC2, Fargate, and Lambda) in exchange for a committed amount of usage (measured in $/hour) over 1 or 3 years. Types of Saving Plans Savings Plans provide more flexibility than Reserved Instances (RIs) and come in two types: Compute Savings Plans: Provide the most flexibility and apply to any EC2 instance regardless of region, instance family, operating system, or tenancy. They can also apply to AWS Fargate and AWS Lambda usage. EC2 Instance Savings Plans: Similar to traditional RIs, these plans apply to a specific instance family within a region and offer slightly higher savings. With the restrictions coming to the RI marketplace, Saving Plans are a more attractive option for AWS customers to save money in the cloud. Comparing Reservation Options with Savings Plans Customers may be advised to move to Convertible Reservations to lower cloud costs. However, it is important to evaluate if it aligns with your cloud operations and requirements before diving into this option. Let’s take a closer look at the advantages and disadvantages of the Convertible Reservation. Examples of AWS EC2 Plans, Payment Models and Savings    Convertible Reservation - Pros and Cons  Customers may consider convertible Reservations as an alternative to Standard RIs.  Pros: Ability to change the size, operating system, family, and server generation. Along with the option to update the purchase and increase its value without extending the end date.  Example: Let’s pretend that we need to cover a C5.XLARGE Linux server in N. Virginia. Below is the pricing for c5.xlarge, Linux, N. Virginia  On-demand = $0.17/hr 3 yr Convertible = $0.082 (52% savings) 3 yr Compute Savings Plan = $0.082 (52% savings) We purchase a 3-year No Upfront purchase on January 1st, 2024 for 3 years.  Start Date = 1/1/2024 End Date = 1/1/2027 Purchase = $0.082/hr    Now we have a scenario where on January 1st, 2025, we no longer need this C5.XLARGE server and need to replace it with 2 M5.XLARGE servers ($0.192/hr/server), Linux, N. Virginia. Below would be the scenario for both models (savings will be the same)   CONVERTIBLE On January 1st, 2025, we convert the c5.xlarge to 2 m5. xlarge, Linux, N. Virginia.  Value of the purchase has increased from $0.082/hr to $0.194 New Value = $0.194 End Date = January 1st, 2027  COMPUTE SAVINGS PLANS  On January 1st, 2025 we will have to add a new purchase to cover the difference ($0.194-$0.082=$0.112). This purchase will expire on January 1st, 2028, NOT 2027.  We will now have two purchases with two different end dates:  Purchase 1:  Value = $0.082 End Date = 1/1/2027 Purchase 2:  Value = $0.112 End Date = 1/1/2028   Cons: Region is not flexible - In the example above, we are stuck if the m5.xlarge servers that need to replace the c5.xlarge are in Ireland. Savings Plans are region-flexible.  Requires manual or programmatic change - AWS does not convert it for you - Converting the RI requires going into AWS and manually or programmatically changing the c5.xlarge to m5.xlarge.  Savings Plans detect new instance types and change the coverage without intervention. This reduces the chance of waste since no intervention is required - AWS is taking care of it for you.  Umbrella’s recommendation: We recommend purchasing a 3-year Compute Savings Plan for safety and maximum savings. Why? Successful companies will increase Cloud consumption as their business grows, requiring flexible purchases for changing architecture. Additionally, a 3-year commitment to AWS is not a significant risk if the company foresees continued usage. Keep in Mind:  Don't assume everything will be fine with your RI purchases. Take the time to review what you've bought and ensure no architecture changes will leave you with unused RIs.  Contact AWS: Suppose you want to replace all RIs with a 3-year Savings Plans purchase, approach AWS, and request migration from RIs to a 3-year SP purchase. They may agree if the value of SP purchases matches or exceeds that of RIs. AWS Savings Plans and Umbrella Customers who used to depend on RIs will seek a solution to set up the perfect Saving Plan that suits their needs. Umbrella can help you get a handle on your AWS usage patterns to make informed decisions about which Saving Plans to obtain. For instance, if Umbrella notices that you're consistently using a specific service, you might want to jump on a Saving Plan for that service to cut costs. Check out Umbrella on the AWS marketplace. And the best part? Try our cloud cost management there for free!

Our solution (Umbrella) and CloudZero are popular choices regarding third-party solutions for businesses managing cloud costs, adapting a FinOps approach to make their cloud operations more efficient. That's why a platform that can effectively support a FinOps model has become necessary for optimizing cloud functionality. Let's analyze and dive deeper into who offers the best solutions, technology, and support to take your FinOps culture in the cloud to the next level. Company Profiles Background of Umbrella We are a prominent business monitoring solution revolutionizing how companies comprehend and manage their cloud expenses. With a strong focus on FinOps, we deliver robust features, including multicloud visibility, Kubernetes insights, and cost-saving recommendations. Overview of Umbrella's cloud cost monitoring solution as a FinOps tool Our AI platform proactively identifies and resolves issues, allowing businesses to optimize performance and make data-driven decisions. Check out our white paper for a deeper overview of how to build and launch a successful FinOps practice!     Our features are motivated by the three components of a successful FinOps strategy*. Optimize: A comprehensive solution to address all your FinOps requirements, offering compatibility and support across AWS, Azure, and GCP platforms. Inform: Automatic data updates once the billing invoice refreshes, and we also keep at least 12 months of historical data stored. Operate: Visualization of K8s costs at different levels: namespace, cluster, node, pod stack, and by object labels. *Established as the three pieces of a complete strategy by the FinOps Foundation.   Background of CloudZero CloudZero enables organizations to make informed decisions, detect cost overruns, and optimize cloud spending. Its real-time cost anomaly and waste detection capabilities help prevent accidental overspending and drive profitability. Overview of CloudZero's cloud cost monitoring solution as a FinOps tool CloudZero is an adequate option for businesses migrating their data and activities to the cloud. However, when implementing the complete strategy of Inform, Optimize, and Operate by the FinOps Foundation, their platform needs to leverage this practice entirely. Basic: Forecasting and budgeting capabilities (but reportings are inconsistent). Limited specialization: Exclusively AWS, K8s, and Snowflake. Simple support: Still need to release an MSP version. Breakdown of FinOps features Umbrella We aim to give you a complete picture of your cloud costs so you can understand what's happening and continuously enhance your cloud operations. Visibility: Top-notch (according to up-to-date info), with multi-cloud capabilities and shared costs. Recommendations: Over 40 types of cost-reducing recommendations (over 60 types for AWS!) with remediation instructions through CLI and AWS Console. API: Easy to use and operationalize (many customers consume our data through API). MSP Compatibility: Our MSP-ready solution has multitenancy, customer invoicing, and discount management rules. CloudZero CloudZero provides some basic features for advanced savings and FinOps insights. However, while the platform offers cost visibility and allocation, it needs more tools for a successful FinOps program. Simple insights: Teams using CloudZero won't be able to dive deeper into cloud cost and eliminate waste. Minimal technology: Lacks ML-powered forecasting, budgeting, and anomaly detection for precise cloud spend management. Inadequate customization: No pre-configured, customized reports and forecasts to deliver relevant, customized reporting for FinOps personas. Umbrella or CloudZero: Which is better for a FinOps-focused Cloud? More and more organizations are adopting FinOps to manage cloud costs. It optimizes spending, promotes financial accountability, and enables informed decision-making on cloud usage. After reviewing Umbrella and CloudZero, who can you trust to provide insights, recommendations, and customizations for a thriving FinOps culture? We innovate with you, recognizing that you require more than just functionality. You need a platform that provides real-time visibility, analytics, and optimization for MSPs. BTW: We'll level up your FinOps and cloud cost management game whenever you're ready!

According to a recent HashiCorp-Forrester report, 94% of enterprises overspend in the cloud due to underused resources, overprovisioning, and ineffective management. So, how can businesses optimize cloud usage and allocate resources efficiently to avoid unnecessary expenses? In this post, we'll cover the must-knows about cloud billing: the terms, the charges, and the tools to help you cut back on overspending ASAP! Basic Terminology on Cloud Billing Before diving into the ins and outs of cloud billing, it's helpful to grasp a few key concepts and get familiar with common terms. Cloud billing Refers to calculating, tracking, and managing the costs associated with cloud services. Cost management tools Software solutions help businesses monitor, analyze, and optimize cloud expenses and billing. Cost allocation tags Labels or metadata that businesses can assign to their cloud resources to categorize and track costs. Budget Alerts Notifications or alerts triggered when specific spending thresholds or limits are reached within a defined budget. Getting a good grasp of cloud terminology can help you learn and understand cloud billing, especially if you're starting your cloud journey. The Basics of Cloud Charges What are cloud charges? Cloud charges refer to the costs or fees of cloud services and resources. When businesses or teams use cloud computing, they usually pay for their resources, like storage space, computing power, data transfer, and extra features or services offered by cloud service providers. Types of cloud charges Understanding the various types of charges on your cloud bill is crucial to managing and optimizing your cloud expenses effectively. Cloud charges can generally be categorized into a few main types: Compute Resources  Charges for the virtual machines or instances that run your applications. Pricing is usually based on the size of the instance and the time it’s running. Storage  Fees for storing data in the cloud. This includes object storage, block storage, and file storage, with costs often based on the amount of data stored and the duration of storage. Data Transfer Costs associated with transferring data in and out of the cloud platform. Ingress is often free, but it can incur charges, especially when data is transferred to the internet or different regions. Services Many cloud providers offer managed services like databases, AI and machine learning, IoT, and more. Each service has its own pricing model, generally reflecting the level of resources consumed or the number of requests made. Support Plans  Optional charges for support services range from basic support to enterprise-grade offerings that come with higher costs. Licensing You may also be billed for software licenses if you’re using proprietary software on the cloud. Did you know? Tools like Umbrella’s Cloud Unit Economics and CostGPT can assist FinOps teams in understanding the impact of cloud spending on business performance, provide instant insights, and help optimize cloud spend. The Basics of Cloud Charges Understanding the various types of charges on your cloud bill is crucial to managing and optimizing your cloud expenses effectively. Cloud charges can generally be categorized into a few main types: Compute Resources: Charges for the virtual machines or instances that run your applications. Pricing is usually based on the size of the instance and the time it's running. Storage: Fees for storing data in the cloud. This includes object storage, block storage, and file storage, with costs often based on the amount of data stored and the duration of storage. Data Transfer: Costs associated with transferring data in and out of the cloud platform. Ingress is often free, but egress can incur charges, especially when data is transferred out to the internet or to different regions. Services: Many cloud providers offer various managed services like databases, AI and machine learning, IoT, and more. Each service has its own pricing model, generally reflecting the level of resources consumed or the number of requests made. Support Plans: Optional charges for support services, which can range from basic support to enterprise-grade offerings that come with higher costs. Licensing: If you're using proprietary software on the cloud, you may also be billed for software licenses. Step-by-step guide for managing cloud spend Budget alerts: Start by setting up budget alerts within your cloud service provider’s platform to receive notifications when your spending approaches your threshold. Tagging strategies: Implementing tagging strategies can help you track costs by department, project, or environment, making it easier to identify where resources are being used and where they can be trimmed. Billing dashboard: Regularly review your billing dashboard to understand your usage patterns and adjust your spend accordingly. Reserved instances or savings plans: Opt for reserved instances or savings plans for predictable workloads to benefit from discounted rates compared to on-demand pricing. Cleaning up unused resources: Keeping a watchful eye on cloud waste can help you ditch unnecessary data and keep your storage efficient. By applying these strategies, you can take control of your cloud finances and avoid unexpected charges, keeping your cloud bill transparent and predictable. FinOps tools for Cost Optimization FinOps is about bringing financial accountability to the variable spend model of the cloud, ensuring that everyone takes ownership of their cloud usage. The competitive analysis of FinOps tools can guide organizations in selecting the right platform that aligns with their specific needs. Did you know? Umbrella’s solutions for Managed Service Providers help make informed pricing decisions and build a cost optimization plan that maintains higher profit margins. Other ways for cloud cost optimization Use cloud cost management tools for detailed analysis and recommendations. Embrace a FinOps culture for better financial accountability and ownership of cloud usage. Implement best practices such as rightsizing and selecting cost-effective pricing models. Automate operations and monitoring to maintain a proactive stance on cost management. Consult with experts and leverage competitive analyses to choose the best platform for your organization’s needs.   Looking ahead on cloud billing As your business scales, cloud usage can fluctuate in the blink of an eye! This can lead to unexpected charges planned for properly. To avoid cost-related surprises, understand the terms and what they do in the cloud to become fluent in implementing forecasting methods that consider historical data, growth trends, and potential changes in service requirements. Need a refresher? Just remember these highlights: Implementing a budget that reflects your cloud usage predictions. Analyzing your past cloud bills to identify usage patterns and growth rates. Leveraging FinOps tools can simplify this process by providing predictive analytics and budgeting features that help you set threshold alerts to prevent overspending. Stay informed about the cloud provider’s pricing models and discount options, such as reserved instances or savings plans, which can further refine your budgeting strategy. Consistent monitoring and adjusting your cloud budget are essential as your business and the cloud market evolve. Dealing with costs in the cloud can be nerve-racking, but hopefully, this post points you in the right direction to get started! If you need further help, you can schedule a meeting with our cloud cost management experts!