Why the Cloud Makes Forecasts Difficult and How FinOps Helps

Moving workloads to the cloud presents cost prediction challenges. Traditional setups with on-premises hardware offer predictability, but cloud costs are usage-based and granular. In this podcast episode, Matt Stellpflug, a senior FinOps specialist at ProsperOps, discusses the complexities of forecasting cloud expenses with TNS host Heather Joslyn. Cloud users face fluctuating costs due to continuous deployments and changing workloads. There are additional expenses for data access and transfer. Stellpflug emphasizes the importance of establishing reference workloads and benchmarks for accurate forecasting. Engineers play a vital role in FinOps initiatives since they ensure application availability and system integrity. Stellpflug suggests collaborating with engineering teams to identify essential metrics. He co-authored an "Engineer's Guide to Cloud Cost Optimization," highlighting the distinction between resource and rate optimization. Best practices involve addressing high-impact, low-risk areas first, engaging subject matter experts for complex issues, and maintaining momentum. This episode also provides further insights into implementing FinOps for effective cloud cost management. Learn more from The New Stack about FinOps and ProsperOps: FinOps Overview, News, and Trends ProsperOps Wants to Automate Your FinOps Strategy Engineer’s Guide to Cloud Cost Optimization: Manual DIY Optimization Engineer’s Guide to Cloud Cost Optimization: Engineering Resources in the Cloud Engineer’s Guide to Cloud Cost Optimization: Prioritize Cloud Rate Optimization