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Cloud cost anomalies are unpredicted variations (typically increases) in cloud spending that are larger than expected based on historical patterns.  Misconfiguration, unused resources, malicious activity or overambitious projects are some of the reasons for unexpected anomalies in cloud costs. Even the smallest of incidents can add up over time leading to cost overruns and bill shock. As cloud billing data is collected and reviewed periodically, it is often difficult for FinOps teams to detect anomalies related to cloud costs in real or near time.  According to the State of FinOps 2022 report, 53% of organizations indicated that it takes days for their FinOps teams to respond to cost anomalies. It is probably because only 25% of companies have implemented automated workflows to manage anomalies.  Measuring cloud cost anomalies Anomaly management is composed of three distinct phases that should be measured separately: Time to detection (occurrence to discovery/acknowledgement)  Time to root cause (time of investigation) Time to resolution (total duration of the anomaly) Additionally, you should also measure the count of anomalies within a given period (e.g., day, week or month). Automated, machine learning–based anomaly detection systems, such as Umbrella, allow the FinOps team to react quickly to avoid unexpected costs.  Managing cloud anomalies with Umbrella Umbrella's fully automated AI detects anomalies in near real time and alerts the appropriate teams only when risk is meaningful, enabling quick response and resolution. With Umbrella’s continuous monitoring and deep visibility, engineers gain the power to eliminate unpredictable spending. Umbrella automatically learns each service usage pattern and alerts relevant teams to irregular cloud spend and usage anomalies, providing the full context of what is happening for the fastest time to resolution. Umbrella seamlessly combines all of your cloud spend into a single platform. Monitor and optimize your cloud costs and resource utilization across AWS, GCP, and Azure. Deep dive into your data details and get a clear picture of how your infrastructure and economies are changing. With Umbrella, you can: Get complete visibility into AWS, Azure, GCP and Kubernetes costs: Understand, divide, track and attribute every dollar spent in context Easily customize reports and dashboards for FinOps stakeholders Manage Kubernetes spending and usage from the same view as your multicloud services Take action and continuously reduce your cloud costs: Pursue the most pertinent cost reduction opportunities with 40+ types of cost savings recommendations CLI and console instructions provided alongside each insight to enable engineers to take action Purchase services efficiently with analysis and customized recommendations Plan your usage effectively and prevent bill shock: Machine-learning based forecasting accurately predicts spend and usage, empowering you to anticipate changing conditions and deliver Detect, alert on, and resolve irregular spending and usage anomalies in near real time Assess enriched Umbrella data via our powerful API and leverage within your other tools With Umbrella, FinOps practitioners can continuously optimize their cloud investments to drive strategic business initiatives.

Companies are investing heavily in the cloud for the operational and financial benefits. But without a robust cloud cost management strategy in place, the complexity of cloud services and billing can to overspending and unnecessary cloud waste. Being able to accurately predict future cloud spend is one way to more optimize cloud spend and inform budgets. Ideally, finance, engineering and executive leadership agree upon and build allocation and forecast models from which to establish budgets that align with business goals. Once a strategy is in place, cloud cost forecasting accuracy is an important KPI to measure in order to understand cloud efficiency and FinOps success. Measuring forecast accuracy  To measure your forecasting accuracy, you’ll need to calculate the variance between your forecast and actual costs. Once the forecasted spend variance (%) is calculated, it can be compared against the FinOps Community of Practitioners' recommended thresholds: For FinOps practices operating at Crawl maturity, variance from actual spend cannot exceed 20% Variance of 15% for a FinOps practice operating at Walk maturity Variations of 12% for FinOps practices operating at Run maturity [CTA id="6c56537c-2f3f-4ee7-bcc1-1b074802aa4c"][/CTA] In the State of FinOps 2022 report, Run organizations reported 5% variance; Walk organizations reported 10% variance; and Crawl organizations reported 20% variance — a testament to the value of a growing FinOps practice. Accurate cloud spend forecasts require robust FinOps capabilities across the board, including complete multi cloud visibility and the ability to fully categorize and allocate cloud costs. Forecasting cloud costs with Umbrella  Umbrella’s AI-powered solution analyzes historical data in order to accurately forecast cloud spend and usage by unit of choice, anticipate changing conditions, and get a better read on related costs. This helps organizations to make more informed budgeting decisions and find the right balance between CapEx and OpEx. From a single platform, Umbrella provides complete, end-to-end visibility into an organization’s entire cloud infrastructure and related billing costs. By monitoring cloud metrics together with revenue and business metrics, Umbrella enables cloud teams to understand the true cost of their cloud resources, with benefits such as: Deep visibility and insights - Report on and allocate 100% of your multicloud costs (with K8 insight down to the pod level) and deliver relevant, customized reporting for each persona in your FinOps organization Easy-to-action savings recommendations - Reduce waste and maximize utilization with 40+ savings recommendations highly personalized to your business and infrastructure Continuous cost monitoring and control - Adaptive, AI-powered forecasting, budgeting and anomaly detection empower you to manage cloud spend with a high degree of accuracy and relevance Immediate value - You'll know how much you can immediately save from day one and rely on pre-configured, customized reports and forecasts to begin eliminating waste  

One of the key advantages of cloud services versus on premise deployments is the wide range of purchasing options and pricing models. While it's an attractive advantage, it can be complicated for organizations to determine the best blend of service pricing models. The ability to define the organization's blend of purchasing strategies and display the target versus actual performance is critical for optimizing cloud cost management efforts. There are several KPIs to help you measure FinOps efficiency and ensure you use the commitment capabilities offered by your cloud provider. Cloud pricing models All major cloud providers offer several pricing models: On-Demand: pay for capacity by the hour or the second depending on which instances you run. No longer-term commitments or upfront payments are needed. Reserved Instances (RIs), Committed Use Discounts (CUDs), and Savings Plans (SPs): flexible pricing models that offer discounts if you commit (based on resource usage or spend) over a fixed period. Spot Instances: purchase spare AWS capacity for up to 90% off the On-Demand price. The downside is that you receive a 2-minute notification that AWS can take the server back and you’ll need to set up a new one. On-demand coverage  Using On-Demand is the most expensive option. One of the metrics that users should measure is the percentage of coverage of On-Demand for each service and determine what can be switched to a different method (Spot / Commitment). Using Spot or workloads that can handle a 2-minute notice before an interruption is a great way to optimize your savings. Generally, they should be stateless applications. It is very common to use Spot on test and development environments. With stable workloads, the preferred method is to buy a commitment that will help you maximize your discount without any interruptions to your workloads. Commitment utilization When it comes to commitments, we want to make sure they're all being used. This is what is called commitment utilization. In this KPI, 2 things are being measured: How much is saved due to the commitments vs. how much waste there is and the ratio between them? The specific percentage of utilization When considering a commitment, you want to give yourself the most coverage while maintaining elasticity — start with no more than 60%, and as you understand your usage, you can increase it. Both of these indicators help make sure that not only are you achieving great coverage but that you are also using your commitment and not wasting money, as the target here is to achieve great coverage. These two KPIs are the first steps in measuring the efficiency of your cloud as well as making sure that you are using the commitment capabilities that the cloud provider offers.  [CTA id="6c56537c-2f3f-4ee7-bcc1-1b074802aa4c"][/CTA] Optimize Purchasing with Umbrella  Umbrella helps companies make smart committed use purchases using personalized recommendations base on historical and forecasted usage. Umbrella generates savings recommendations by analyzing all incurred usage eligible to be covered by a SP/RI, and uses proprietary algorithms to simulate possible combinations of RIs that would cover that usage. Umbrella helps FinOps teams prioritize recommendations based on impact, and it keeps a complete history of recommendations and actions taken. You can visualize the impact of every change before and after it has been implemented. You can tune recommendations based on organizational preferences, snooze them, or reject them outright. Umbrella monitors your cloud metrics together with your revenue and business metrics so you can understand the true unit economics of your SaaS customers, features, engineering teams and more. With Umbrella, FinOps practitioners can continuously optimize their cloud investments and drive strategic business initiatives.

Cloud spend — which research shows makes up 51% of IT budgets — is a prime candidate for company cost savings initiatives with the potential to make a huge difference in gross margins.  It’s also an area that has grown dramatically in the last few years due to digital transformation and a rise in cloud demand during the pandemic. The question is, where should finance and IT leaders focus their cost cutting and cloud cost management measures without impacting business operations, performance and availability? An obvious place for companies to start is analyzing and reducing cloud waste. Why? Surveys consistently show an average of 30% of cloud spend is wasted. Cloud providers charge for services provisioned, even if they’re not used. Overprovisioned, unused, and orphaned cloud resources are common in many organizations. Further, On-Demand rates for resources are significantly higher than commitment-based discount rates.  Sources of Cloud Waste Percentage of waste is based on open savings opportunities to optimize cloud billing. To measure this indicator, you have to first define what you consider waste. Waste can be roughly divided into three types: Idle and unattached resources Resources that can be right-sized Commitment purchase opportunity Measuring Cloud Waste Cloud waste is an important KPI for measuring cloud efficiency and FinOps success. The percentage waste KPI is built on a daily/weekly/monthly scan of cloud usage and then finding usage reduction options. Using one of these three groups, you calculate what percentage of the total use is inefficient: Cost of unused cloud resources against total cost (%) Cost of over-provisioned resources against total cost (%) Percent of infrastructure running on-demand vs. covered by discount or Spot, measured by hours (%) Some common examples include the percentage of EBS Unattached out of the entire EBS costs, or the percentage of Old Snapshot out of the entire Snapshot costs, etc.    Reduce Cloud Waste with Umbrella Systems like Umbrella can scan for dozens cloud cost optimization opportunities automatically and calculate a sustained waste percentage. As a result, you can measure whether the overall waste of all cloud costs has been reduced, or if a specific type of waste has been reduced.  With Umbrella, you can bring finance, devops, and business stakeholders together to collaboratively control and reduce spend across all your cloud infrastructure. Continuously eliminate waste with easy-to-action savings recommendations that can drive significant savings. See cost causation and allocate spend by service, business unit, team, and app with deep visibility, granular detail, and reporting across AWS, GCP, and pod level Kubernetes. Avoid bill shock and enable FinOps with near real-time anomaly detection and alerts and insightful, machine learning powered cloud cost forecasting. Umbrella monitors your cloud metrics together with your revenue and business metrics — so you can understand your true unit economics (revenue, cost, or margin) of your SaaS customers, features, engineering teams, and more. Umbrella automatically learns each service usage pattern and alerts relevant teams to irregular spend and usage anomalies, providing the full context of what is happening for the fastest time to resolution. 

Cloud adoption has been on an upward trajectory for over a decade with no signs of slowing down. As widescale migration becomes the norm, organizations are realizing cloud financial management — also referred to as FinOps — is critical to creating long term value in the cloud. Building a culture of financial discipline requires visibility and a strategy for measuring success along the way. Several important KPIs should be measured to understand the effectiveness of your FinOps efforts, including unit metrics. Unit metrics allows businesses to measure the effectiveness of cloud cost management efforts and to plan and predict budgets by making delivery teams financially accountable to business drivers. By using unit economics, FinOps teams can correlate cloud spending growth to overall business growth, surfacing problems when cloud spending grows too quickly. Unit economics explained   A business model’s unit economics describes its revenues and costs in relation to one unit — such as a customer served or unit sold. To understand costs, you must first identify the resources required per customer. A resource is any cloud service that has a direct or shared cost associated with it. If you have dozens of customers on shared resources like databases, storage, and microservices, you would need to model the resources into smaller pieces and understand the time (CPU) and/or memory a specific customer is consuming. Measuring unit costs   According to the FinOps Community of Practitioners: At the Crawl maturity level, FinOps practices measure cloud spend for a particular application against total revenue (e.g., cloud spend as a percentage of revenue). The Walk maturity level requires tying outputs to a unit of activity (e.g., API call cost). The Run maturity level requires measuring how much it costs to do a revenue-generating activity (e.g., cost of a transaction or customer). Unit costs are not a priority for most organizations since they are difficult to understand and measure. According to the State of FinOps 2022 report, only one in four organizations use unit costs, even though organizations operating at the Run maturity level report using them to effectively execute decisions, promote FinOps culture, and drive their FinOps success. Unit costs will never be completely accurate. The cost of these services can, however, be estimated intelligently using several methods of varying accuracy. [CTA id="6c56537c-2f3f-4ee7-bcc1-1b074802aa4c"][/CTA] Unit economics with Umbrella   Umbrella's business monitoring platform analyzes metrics and identifies anomalies. Therefore, metrics are our main KPI and unit of measure. The simplest way for us to measure the costs of our customers is to count the total metrics for all of our customers, then divide the cost of all of our cloud costs and divide it by the total unit metrics. With Umbrella’s Business Mapping feature, you can accurately map multi cloud and Kubernetes spending data, assign shared costs equitably, and report cloud spend to drive FinOps collaboration for your organization. Mappings are built from one or more rules that allocate spend to a business dimension using sophisticated and nested evaluation criteria. With each additional mapping, the remaining pool of cloud costs is further divided without overlap. Umbrella helps you understand your cloud unit economics by aligning your cloud costs to key business dimensions. Allowing you to track and report on unit costs and get a clear picture of how your infrastructure and economies are changing.  

Achieving cost savings is one of the main drivers for cloud adoption. But for most companies, controlling cloud spend is much more challenging than anticipated. In a recent survey, 94% of IT decision makers report they are overspending in the cloud. Our own survey on cloud costs revealed 90% of executives say better cloud cost management and cost reduction is a top priority. To achieve better cloud financial management, the practice of FinOps — often assigned to a multidisciplinary and cross-functional group — is emerging as the standard for understanding and optimizing cloud computing costs and resources. To ensure FinOps success, organizations should include a practice of benchmarking and measurement to ensure improvement in cloud management. Cloud Instance Costs One of the KPIs most critical for measuring cloud efficiency is hourly cloud service costs. The hourly cost of an instance is affected by a lot of different factors, such as its type, size, and payment plan. An average hourly cost is a way to normalize cloud service costs across projects, teams, use cases and billing methods. This indicator can be used for any service whose cost can be measured in hours or seconds, but users generally measure some or all of these five services: EC2 RDS Redshift Open Search ElasticCache The average hourly cost KPI is mainly affected by the following: Machine size — The smaller the machine you use, the lower the hourly cost will be. Sometimes a powerful machine is necessary, making improvements irrelevant. But often, you can save money and reduce the average hourly computing cost by choosing a less powerful machine that is appropriate for your use case. Form of payment — There are five ways to pay for AWS instances: On-Demand, Savings Plans, Reserved Instances, and Spot Instances. With a cheaper payment option, like Spot Instances (up to 90% off On-Demand prices) or machines covered by a commitment agreement, the hourly cost decreases, improving this metric. A reduction in average hourly cost is indicative of improved cloud efficiency since it considers multiple parameters. Umbrella for Cloud Cost Management It is possible to overcome visibility and cost challenges by using native cloud service provider tools, building in house solutions, or purchasing FinOps tools, such as Umbrella. Umbrella is the only platform built to measure and drive success in FinOps, giving teams visibility into KPIs and baselines and recommendations to help control spend. Umbrella's 40+ savings recommendations help teams continually eliminate waste and drive savings by optimizing how you purchase AWS, Azure and GCP. Enable FinOps with Umbrella Visualize — Understand costs and drive ownership Track, divide and attribute every dollar spent in context with its business role or KPI, team, shared service and application Customize reports and dashboards for each FinOps stakeholder Manager Kubernetes spending and usage from the save view as your multicloud services Optimize — Cut costs with easy-to-action savings recommendations Pursue savings opportunities with personalized cost reduction recommendations CLI and console instructions provided alongside each insight enable engineers to take action fast Purchase services efficiently with analysis and customized recommendations for commitment and discount vehicles Monitor — Operate your clouds efficiently and avoid billing surprises Machine learning-based forecasting accurately predicts spend and usage Detect and resolve irregular spending and usage anomalies Access enriched Umbrella data via our powerful API and leverage it within your other tools Umbrella's cost allocation feature helps organizations accurately map multicloud and Kubernetes spending data, assign shared costs equitably, and drive FinOps collaboration throughout your organization. Inform and empower business decisions at all levels with Umbrella's cloud cost management solution.

Cloud services are the number one source of unexpected overspending for companies today. As a result, cloud financial management is a major focus for most organizations. But how do you track the success of cloud efficiency? Full allocation of multicloud costs is a critical component for understanding your actual cloud services usage, establishing cloud cost management ownership, and creating accurate budgets and forecasts at the line of business, project, application and even team levels. According to the FinOps Community of Practitioners, at least 80% of cloud spend needs to be allocated for a FinOps practice operating at a Crawl maturity level, and 90% for a FinOps practice operating at a Run maturity level. The State of FinOps 2022 report revealed that, on average, only 75% of cloud spending is allocatable, with only 14% of organizations currently achieving 90% cost allocation. Cost allocation challenges Shared costs — Identifying and equitably allocating these costs becomes more challenging as businesses and cloud usage grow, and accurately splitting shared costs impacts ownership strategies like showback and chargeback, as well as budgeting, and forecasting. Tag compliance — To achieve comprehensive cost allocation, it is necessary to enforce tagging and to have retroactive spend tagging capabilities in place. Overall Tagging Compliance must be at least 90%. The ability to map tagged data to financial reporting is a challenge for many organizations. Unallocated spend — Organizations must be able to surface the percentage of cost that cannot be categorized and allocated directly. These costs must be investigated at a granular level to determine if they can either be budgeted directly as a shared cost or can be divided by agreed-upon factors. Methods of spend accountability   Once costs are categorized and allocated, cloud spend reporting and accountability is generally handled through one of two methodologies: Showback — Showback provides full cost transparency and helps drive accountability by providing visibility into spending but keeps the expenses in a centralized budget. Chargeback — Chargeback takes it one step further by sending expenses to a product or department P&L. The ability to allocate spend is what determines FinOps maturity, not whether a company uses a showback or chargeback strategy. According to the FinOps Foundation's State of FinOps 2022 report, 64% of organizations report costs through showback, while 48% report costs through chargeback. Umbrella is the only FinOps platform built to measure and drive success in FinOps, giving you complete visibility into your KPIs and baselines, recommendations to help you control waste and spend, and reporting to make sure you improve your cloud efficiency. Assessing your cloud cost allocation strategy   Assessing your allocation strategy is a key step in a successful FinOps journey. Consider the following questions as a starting point: What percentage of your costs do you allocate today? How do you allocate the cost of shared services? Can you map your cloud costs to business units, cost centers, applications, and projects? Is your cloud spending aligned with your business needs? Cloud cost allocation with Umbrella   Umbrella helps businesses understand cloud unit economics by aligning cloud costs to key business dimensions. This allows users to track and report on unit costs and get a clear picture of how infrastructures and economies are changing.   Umbrella's cost allocation feature helps organizations accurately map multicloud and Kubernetes spending data, assign shared costs equitably, and drive FinOps collaboration throughout your organization. With Umbrella, FinOps teams can easily classify and divide all of their cloud costs by business structures like apps, teams, and lines of business. Inform and empower business decisions at all levels from Umbrella's cloud cost management solution.

The ROI of moving to the cloud As businesses shift to a digital-first environment, cloud computing will play a dominant role in delivering greater flexibility and faster innovation. In a recent report by Deloitte, nearly 90% of US-based senior decision makers proclaim cloud to be the cornerstone of their digital strategy. Covid accelerated cloud migration initiatives, with no signs of slowing down. Gartner forecasts worldwide end-user spend on public cloud services will grow by 20.4% in 2022 to a total of $494.7 billion.  The race to cloud is on at full speed ahead for a reason. The benefits are many and strategic, including: Business agility Rapid innovation Accelerated time-to-delivery Fast time-to-market Scale and elasticity Cost efficiency Reduced TCO Yet, with all the benefits, at least half of all organizations say they have yet to realize value from their cloud investments. This is because there are still many hurdles to cloud optimization, which makes effective cloud cost management and maximizing cloud ROI very challenging.  Challenges to achieving ROI Return on investment (ROI) is an indicator that signifies whether a business decision or investment led to a positive impact on the company. The measure of ROI is the increase in the value of an investment over time. At the heart of the challenge in achieving cloud ROI is cloud waste. The most common sources include: Scalability and the ability to provision limitless capacity: where the organization grants access to resources whenever they’re needed, but the corresponding cost allocation is neither apparent nor managed. Idle resources: when non-production resources that are being used for development, staging, testing, or QA, are being paid for as though they are being utilized 24/7, but they’re not. Unattached volumes: where volumes remain attached to terminated services and are not deleted even if they’re not in use. Unused virtual machines: that are not turned off once their work is complete. Oversized infrastructure: intended for planned capacity but is not being used.  Best practices for maximizing cloud ROI The only way for organizations to minimize waste and control spend is if they are able to detect when there is cloud waste, where it is, and how to best eliminate it , so they can better manage costs and ultimately maximize cloud ROI. As such, what organizations need first and foremost is visibility into cloud utilization and the ability to control waste whenever it’s detected.  Let’s take a look at three key best practices organizations can implement to gain such visibility and to finally get the control they need over their cloud costs. Gaining visibility with a Cloud Center of Excellence  An important driver of visibility is the Cloud Center of Excellence (CcoE), whose mandate it is to facilitate and nurture cooperation among business units across the entire organization, so they can: Share best practices Collaborate on optimizing the value of cloud computing Make data-driven decisions  Establish an organization-wide framework for cloud operations By facilitating cross-unit communications for sharing and collaboration, the CCoE provides more stakeholders visibility into cloud utilization. For example, if developers are putting workloads in the cloud, with a CcoE in place, they will have the framework (and motivation) to communicate this to other teams, who will now be aware, which is what visibility is all about. Driving visibility with FinOps The goal of FinOps, also known as cloud financial management, is to drive financial accountability while maximizing the business value of cloud. According to the FinOps Foundation, FinOps is also a cultural practice that enables businesses to get maximum business value by helping engineering, finance, technology and business teams to collaborate on data-driven spending decisions.  With a view to attaining visibility, one of the key tasks of FinOps is monitoring. So, if there is a sudden spike in the average hourly bucket size of a specific service over the course of a week, for example, with the right tools and processes in place FinOps will be able to detect the cost anomaly and relay this vital insight to the individuals charged with correction, thus granting them visibility.   From visibility to control  Now that we know how we can achieve greater visibility, the next step towards maximizing cloud ROI is to control costs.  Controlling costs is driven by reducing waste through corrective actions. For example, if you have detected waste from specific service types then you can visualize the business mappings between who and what are using which services. You can also monitor for better workload-to-instance options to better align needs with the services being consumed.  If you find that costs are outpacing utilization for certain services, you can size down overprovisioned infrastructure or terminate unused zombie infrastructure. And, if  the unit price is too high from your on-demand pricing plan, you can negotiate a discount with your provider for reserving capacity through savings plans, reserved instances, and committed use discounts. Forecasting Cloud Costs to Inform Budgets Accurately and continuously forecasting future cloud expenditures is the best way to anticipate results, create budgets and respond quickly enough to keep cloud costs from spiraling out of control. Accurate forecasting ensures lines of business are adhering to their budgets by alerting stakeholders when cost centers are exceeding predefined limits. Organizations with mature FinOps—a cloud financial management discipline and cultural practice—have teams that are collaborating to build forecast models from which to establish budgets that align with the goals of the business. Measuring cloud ROI The traditional ROI formula of return over costs is a difficult equation to apply to cloud computing. To calculate the true value of cloud adoption, organizations need to factor in benefits that are not always associated in dollar terms, such as increased business agility and elasticity. The best measure of cloud ROI is associated with factors that drive an organization to move to the cloud in the first place. The most common reasons associated with migration include: Moving workloads from data centers to cloud environments - Compare the costs of the equipment and maintenance of an on premise environment to the OpEx costs of cloud computing. Scalability - Quantify the cost savings associated with being able to quickly accommodate sudden spikes or short term surges in resource needs. Business agility - Faster responses to business requests and quicker development times result in greater cost and performance efficiencies. Efficiency - On premise hosting requires substation costs for resources that some organizations may not fully use while cloud computing is most commonly a pay for what you use model. Maximizing cloud ROI with Umbrella Umbrella is helping organizations around the world maximize cloud ROI by delivering visibility into cloud utilization and enabling them to control waste and spend. From a single platform, Umbrella provides complete, end-to-end visibility into your entire cloud infrastructure and related billing costs. The AI-powered platform constitutes a complete cloud FinOps solution that correlates spend with business KPIs. It easily connects to any cloud provider and delivers complete visibility into AWS, Azure, GCP, and Kubernetes costs.  Reducing cloud waste with Umbrella’s easy-to-action savings recommendations and avoid bill shock with anomaly detection and alerts.    From a single platform, Umbrella provides complete, end-to-end visibility into your entire cloud infrastructure and related billing costs. By monitoring your cloud metrics together with your revenue and business metrics, Umbrella enables cloud teams to understand the true cost of their SaaS customers and features, enabling ROI and the promised value of the cloud. 

We are excited to share that Umbrella’s Cloud Cost Management solution has been named a Challenger and Fast Mover in the 2022 GigaOm Radar for Evaluating Financial Operations (FinOps) Tools report. About the report The report from industry research firm GigaOm outlines issues, trends, and purchase considerations for organizations seeking solutions to help them reign in unanticipated and unplanned cloud costs.  Controlling cloud spend is especially important in today's challenging economic climate. After a period of hyper growth and business expansion that aligned closely with the rise of the cloud, businesses are looking to cut costs within their large line items.  At the same time, it's becoming more challenging to monitor and control cloud spend. Gaining granular visibility into complex, multicloud environments is difficult. Additionally, most companies are billed by cloud provides each month without clear reasons as to why there are cost fluctuations or how to accurately forecast future spend.  The GigaOm report aims to alleviate some of these challenges by presenting findings from the firm’s analysis of the relative value, progression, strategy, and execution of various product vendors, recognizing those who excel in their offerings. It’s a forward looking assessment that plots the current and projected position of each vendor.  The categories & criteria Among the vendor categories evaluated are small-to-medium businesses (SMBs), large enterprises, multinationals, and managed service providers (MSPs).  In terms of deployment models, software as a service (SaaS), hybrid, and self-managed solutions were all evaluated. The key criteria for recognition include: Normalized billing across multiple cloud vendors Cloud vendor cost comparisons Cloud rate optimization IT finance integration and chargeback Identification of cost optimization opportunities Real-time decision making   According to GigaOm, those set closer to the center are judged to be of higher overall value. And we are proud to be placed among those who bring the most value to organizations aiming at heightened efficacy in monitoring and controlling cloud costs. Proud to exceed in the market Umbrella was recognized for exceeding the market on several key criteria among 13 other vendors.  These include normalizing billing across providers, where the analyst firm highlighted the solution’s: Delivery of granularity  Speed-to-awareness of cloud spend Ability to correlate spending by application across cloud vendors Forecasting accuracy was also noted as one of our solution’s strengths, further to its ability generate a one-year forecast with 95% accuracy, as based on only two months of historical data. Moreover, the solution’s ability to identify cost optimization opportunities was recognized for exceeding the market. Namely, other offerings extend only a trendline, but Umbrella for Cloud Costs is AI-powered and can predict future costs, powering robust negotiation of long-term discounts with cloud providers. Another capability that sets Umbrella apart in the report, is that we offer the unique ability to work with serverless and container spend, delivering the same level of forecasting accuracy for these kinds of workloads. According to GiagOm, this is an emerging area in FinOps that few vendors have yet to address. The GigaOm report also gives Umbrella a high score for its flexibility in dealing with new types of workloads and IT projects, as well as for its scalability in meeting global enterprise needs. Providing next generation capabilities  The analyst’s perspective in the report includes a prediction that in the coming years, the focus of FinOps tools will be on enforcing compliance with or exposing deviations to spend that has been approved. It is then stated that the best tools will be those that provide intelligent forecasting and optimization recommendations for future spend. This is what Umbrella Cloud Cost is doing today, providing hyper-accurate forecasting of cloud costs with easy-to-implement recommendations that enable companies to cut unnecessary cloud costs and eliminate waste at savings of up to 40% on annual cloud spend. The need has never been greater With cloud costs being one of the most expensive resources for data driven businesses today and an average of 30% of those costs often going to waste, the need for continuous monitoring, deep visibility, and automatic alerts to usage anomalies, has never been more compelling. This is what Umbrella for Cloud Costs delivers, enabling organizations to:  Improve cloud cost visibility at a granular level Reduce cloud waste and optimize cloud spend Allocate and control the multi-cloud budget  Accurately forecast cloud spend and usage  Track Kubernetes spending and usage across clusters  Easily track your spending and usage across your clusters with detailed reports and dashboards. Umbrella for Cloud Costs’ powerful algorithms and multi-dimensional filters enable you to deep dive into your performance and identify under-utilization at the node level.