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PRT322

SPONSORED BY VMWARE

Cloud FinOps: Empower

real-time decision making
Lucas Paratore J.R. Storment Joshua Bauman
Senior Product Line Manager Executive Director Director of Infrastructure Capacity Management
VMware Aria Cost FinOps Foundation CTO, Infrastructure Optimization
powered by CloudHealth Electronic Arts

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Agenda

What is FinOps and market trends

(J.R. Storment, FinOps Foundation)

FinOps practice in action

(Josh Bauman, EA)

Intro to VMware Aria Cost powered by CloudHealth

(Lucas Paratore, VMware)

Q&A

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Creating a data-driven feedback loop

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FinOps is . . .
. . . an evolving cloud financial management
discipline and cultural practice that

enables organizations to get maximum business value FinOps is not shorthand

for “financial operations”;
it is a portmanteau of
by helping engineering, finance and business teams “finance” and “DevOps,”
stressing the
communication and
collaboration between
to collaborate on data-driven spending decisions. business and
engineering teams.

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 FinOps Foundation Mission
To advance every individual who manages the value of cloud wherever they are.

Create Inspire Empower

connections growth best practices

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FinOps phases and domains
INFORM OPTIMIZE OPERATE

Understand Performance Real-time

Cloud rate Cloud usage Organizational
cloud usage tracking and decision
optimization optimization alignment
and cost benchmarking making

• Cost allocation • Measuring unit costs • Managing anomalies • Data analysis and • Data analysis and • Establishing FinOps
• Data analysis and • Managing • Establishing a FinOps showback showback culture
showback commitment based decision and • Managing • Onboarding • Chargeback and IT
• Managing shared cost discounts accountability commitment-based workloads finance integration
• Data ingestion and • Resource utilization structure discounts • Resource utilization • FinOps education and
normalization and efficiency • Measuring unit costs and efficiency enablement
• Managing anomalies • Forecasting • Data analysis and • Workload • Cloud policy and
• Forecasting • Budget management showback management and governance
• Measuring unit costs • Managing anomalies automation • IT asset management
integration

Source: FinOps Foundation

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The FinOps industry hit an inflection point
this year
LinkedIn (People – incl. FinOps)

• 115 analysts’ reports – the leading term

and 2x the nearest related term “Cloud
Cost Management,” 10x “Cloud
Financial Management”

• Community of 8,189 representing over

3,286 organizations

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State of FinOps survey numbers

1,056
total respondents*

65
questions

$40+ billion
estimated total cloud spend**

* No paid submissions or data collection service used

**Based on middle range of reported spend, high range extends up to ~$58.8b, not including vendor responses Excluding vendor and “do not know” responses

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Survey: FinOps is practiced in every
major industry
FINANCIAL SERVICES AND IT LEAD FOLLOWED BY HEALTH CARE, MEDIA, R ETAIL, TELECOM . . .

Top industries Additional named industry breakdown

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When do engineers see cost data or projections?

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How often do you manage your
commitment-based discounts?

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Can you or your system
currently differentiate
between anomalies and
expected variances in
cloud charges?
https://data.finops.org/#nav-b-showback

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How long before cost anomalies
are investigated?

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 View all the 2022 data and get
involved in the State of FinOps 2023

data.finops.org

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Joshua Bauman

Director of Infrastructure
Capacity Management
CTO, Infrastructure Optimization

Idea Connector

Super Node

Make things better

My Journey to FinOps Champion

Technical
language 🌮🌮🌮
Analytical
mindset 🌮🌮🌮
Selling
your ideas 🌮🌮🌮
2016: New Beginnings Walk

Opportunity Result

New! Convertible Reserved ★ Coverage increased! (30%→70+%)

Instances introduced ★ 5x annual savings
★ Limited risk
★ Maintained flexibility
2019: Optimization Run

Opportunity Result

New! Savings Plans ★ Coverage increased! (70%→90+%)

★ Limited risk
! Maintained flexibility
Solution: Improved Chargeback Fly

Native
Variable rate that can’t be planned List price minus discount
and no way for EA to control (internally calculated)
1. If RIs purchased in account, apply to Amazon EC2
in the account ★ Maintains stable rate for end users
2. Apply remaining RIs to Amazon EC2 NOT in original
account (random?)
3. If Savings Plans purchased in account, apply to ★ Centralizes committed discounts
Amazon EC2 in account
4. Apply remaining Savings Plans to Amazon EC2 NOT
in original account (by highest percentage savings - ★ Quarantines variability
random if more than 1 option?)
Lessons Learned Fly

Maintain flexibility

Build consensus

Holistic price management

VMware Aria Cost
powered by CloudHealth

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VMware Aria:
A unified management solution for cloud-
native applications and native public clouds

VMware Aria Cost VMware Aria Operations VMware Aria Automation

Powered by CloudHealth
Cross-cloud cost optimization Full stack observability App. Guardrails Regulatory config
Infra monitoring monitoring Config mgmt.and configure
Delivermgmt.
Capacity comprehensive visibility, Provide full-stack visibility, Automate application
Secure host config
optimization, and governance for troubleshooting,
Network mgmt. insights, and and infrastructure deployment and
Infra-as-code
Migration
cost and usage across clouds remediation for application and
Troubleshooting enforce cost, security, and
Orchestration
Charge-back infrastructure performance performance using best practices
Log management CI/CD
Secure cloud operations Catalog

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New end-to-end solutions to address
overarching management challenges

VMware Aria Cost VMware Aria Operations VMware Aria Automation

Powered by CloudHealth

VMware Aria Guardrails

VMware Aria Migration

VMware Aria Business Insights

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VMware Aria Cost powered by CloudHealth
A RECOGNIZED LEADER IN FINOPS, MULTI-CLOUD COST MANAGEMENT, AND OPTIMIZATION

$20B+ 1.2B+ 20K+

IN MULTI-CLOUD SPEND CLOUD RESOURCES CUSTOMERS
UNDER MANAGEMENT PROCESSED DAILY WORLDWIDE

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VMware’s relationship with FinOps Foundation
HTTPS://WWW.FINOPS.ORG/VENDOR-MEMBERS/VMWARE/

VMware joined the FinOps Foundation in August

2020 as the first Premier Partner.
VMware Aria Cost powered by CloudHealth is
VMware’s dedicated FinOps solution.

Ways we work with the FinOps Foundation

• Member of Governing Board
• Member of Technical Advisory Council (TAC)
• Member of Code of Conduct Committee
• 100+ FinOps Certified Practitioners and 1 Certified Professional
• Active involvement in working groups (e.g., containers, career objectives,
unit economics)
• Gold Sponsor and Scholarship Sponsor of FinOps X Summit 2022

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API calls
VMWARE ARIA COST POWERED BY CLOUDHEALTH

• Collect 1.2B assets

per day
• Collect and
associate
related assets

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Customizing costs
TAGGING AND COST MANIPULATION IN VMWARE ARIA COST POWERED BY CLOUDHEALTH

Tag Management
Tag Key Cloud Used? Distinct Values Asset Count
• Align to a common Kubernetes Cluster App A AWS Y 19 6364

tagging standard Prod Environment 1

Cost Center C
AWS
Azure
N
Y
5
76
5
23

• Create custom tags in Project Venus GCP Y 43 692

the platform Custom Line Items Cost Reallocation

Rule Name Description
• Enter one-time or
Rule Name Cloud Accounts Region
All Snapshot Costs Allocate snapshot cost
Split credits AWS All
recurring charges to
proportional to EBS testing
Type Frequency Reallocate From:

get fully loaded costs Credit: decreases total cost

Charge: increases total cost
One Time
Monthly Recurring

Reallocate To:
CloudHealth Tools
• Re-allocate costs using Cost Details
Existing Cost
Allocate based on:

rule-based policies Manually Entered Cost Perspective Percentage

Owner 100%
$ Amount
Include credits in Reallocation
On

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Cost allocation
PERSPECTIVES IN VMWARE ARIA COST POWERED BY CLOUDHEALTH

• Maps any costs, including

containerized workloads, back to
business units or cost centers
• Gives granular visibility into
workload usage and cost.
Splits costs by application,
development team,
environment, etc. Application A Application B Application C

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Managing anomalies
ANOMALY DETECTION IN VMWARE ARIA COST POWERED BY CLOUDHEALTH

• Detects unusual increases

or decreases in cloud spend
• Analyzes 13 months of
historical data
• Suppresses insignificant
findings
• Learns from
user-provided feedback
• Reveals root cause

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Reporting to the business
BREAK DOWN COSTS BY COST CENTER FOR CHARGEBACK, BUDGETING, AND F ORECASTING

• View 13 months of
historical costs for each
cost center
• Forecast future spend
based for different
business units
• Establish manageable
budgets for coming
quarters

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Showback for optimization
DELIVER TIMELY REPORTS TO RESOURCE OWNERS TO INFORM OPTIMIZATION

• Track CPU and memory usage

against requests, limits, and
available capacity
• Highlight usage patterns that
are ripe for optimization
• Automate delivery of reports
to inform DevOps teams
• Empower application owners
to make decisions about
resource optimizations

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 Visit Booth #1604 to learn more
about VMware Aria

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Thank you!
Lucas Paratore J.R. Storment Joshua Bauman
[email protected] [email protected] [email protected]

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