We’ve been saying it for years, the benefits and potential of the cloud abound. 

And yet, more than 80% of respondents in a survey of 753 business leaders point to managing cloud spend as their top organizational challenge, and these same respondents estimate that nearly 1/3 of their cloud spend is inefficient or wasted (Flexera, 2023). Many organizations are new to optimizing cloud costs and ensuring resources are used efficiently.

As your organization digitally transforms you may be realizing what other organizations are realizing too: When it comes to business value, simply migrating to the cloud isn’t enough. Achieving the full benefits of cloud requires fundamental changes to both mindset and behaviors around existing financial-management practices. It requires changing the way your disparate teams work together. 

Enter the Cloud FinOps Building Blocks

Cloud FinOps is a framework, discipline, and cultural shift combining people, processes, and technology to drive financial awareness and accountability. FinOps practices align engineering, finance, technology and business leaders and teams under a primary objective: to maximize business value from the cloud. With Cloud FinOps practices, every business stakeholder is charged not only to take responsibility for their spending and costs, but also to optimize them. These practices enable businesses to manage consumption and make sound, data-informed cloud-spend decisions. Cloud FinOps is comprised of five building blocks:

1. Accountability and enablement
   Establishing governance and policies to manage cloud spend and realize business value.
2. Measurement and realization
   Driving financial accountability and value realization with a defined set of KPIs and success metrics.
3. Cost optimization
   Providing financial visibility and recommendations of IT resource usage to optimize cloud spend.
4. Planning and forecasting
   Modernizing budgeting, forecasting, and chargeback methods to allow for iterative, innovative and cost effective development practices.
5. Tools and accelerators
   Deploying and integrating a set of cloud cost tooling to effectively manage and track cloud spend. Learn more here. 

For a general overview of the Cloud FinOps framework and more on the five building blocks, check out these resources:

• Video | What is FinOps and 3 reasons why you should care about it.
  This 5-minute video provides an overview of FinOps, the 5 building blocks, and how they can benefit your organization. 
• Podcast | FinOps with Joe Daly
  In this podcast, Joe Daly of the FinOps Foundation shares about the key principles of FinOps, which he refers to as financial DevOps. Daly discusses how this framework is helping companies make better and more efficient financial decisions while taking advantage of the cloud.
• Blog | Decoding Cloud FinOps to accelerate digital transformation
  This blogpost discusses the critical role of FinOps in a successful digital transformation. It outlines key metrics to help measure and track business value and to increase visibility into the effects of digital transformation on top-line revenue. 
• Article | Cloud FinOps: The secret to unlocking the economic potential of public cloud
  This Forbes article profiles OpenX, the first major advertising exchange platform to migrate entirely to the cloud. It details the 5 key pillars of the Cloud FinOps framework, which OpenX leveraged in their digital transformation strategy. In just 9 months, they reduced their per-unit costs by more than 60%.  

Importantly, Cloud FinOps isn’t about saving money; it’s about making money. It’s about promoting a cost-conscious culture, financial accountability, and business agility in the cloud. Whatever stage of the cloud journey you’re at, cloud FinOps practices will help you get the most value out of Google Cloud. This framework can help to remove blockers, implement the building blocks, and empower your teams to make better business decisions. 

The Cloud FinOps Journey 

Implementing Cloud FinOps is neither a destination nor a box your organization will check then archive. Rather, Cloud FinOps is an ongoing journey and discipline. It’s inherently iterative. As such, growth and maturity across processes, capabilities, and domains requires action, repetition, and continuous learning. 

Across the five FinOps building blocks, we’ve identified 50 subprocesses to best understand organizations’ FinOps proficiency, capabilities, practice domains, and blind spots. We scale them from 1 to 5 and categorize them in one of three phases of maturity: Crawl, Walk, or Run. Organizations in the Crawl phase tend to focus on technical problem solving and cloud-cost visibility. Organizations in the Walk phase emphasize strategic improvements such as employing cost visibility dashboards to realize better business value. And organizations in the Run phase are focused primarily on transformational change and strategic innovation, factoring cost considerations into both processes and cloud architecture. 

Through this “crawl, walk, run” maturity model, we can evaluate proficiency, establish a benchmark, and recommend a targeted action plan for FinOps adoption. And whatever your level of maturity, your organization can take quick scalable action not only to foster improvement but also to evaluate outcomes and gain insights. 

The key here is that regardless of your organization’s Cloud FinOps maturity level, you can take small steps now toward continuous improvement. Here are some common focus areas and several more resources organized by maturity level that you can access.

Crawl phase 

Improve cloud-cost visibility. 

• Whitepaper | Drive Cloud FinOps at scale with Google Cloud Tagging
  Tags and labels can be useful and flexible tools to help your organization segment cloud spend and allocate costs. This whitepaper introduces Google Cloud Tags and best practices for implementing them. It differentiates tags, which offer reliable reporting and governance features, from labels, which can be prone to problems, including poor coverage and a lack of integrity in data labeling. 
• Whitepaper | Unlocking the value of Cloud FinOps with a new operating model
  This white paper unpacks the details of the FinOps operating model, including roles, organizational alignment, and driving culture change. It details how to establish strong financial governance and a cost-conscious culture. 
• Whitepaper | Cloud FinOps: Shared services cost allocation
  In this whitepaper, you’ll explore the elements of cost allocation as well as the complexities and challenges associated with shared-services cost allocation. While some of these concepts and models are interchangeable between legacy and cloud environments, this whitepaper focuses primarily on cloud computing and associated services.

Walk phase

Improve business-value realization. 

• Blog | 5 key metrics to measure Cloud FinOps impact in your organization in 2022 and beyond
  To drive business growth and topline revenue, business leaders must be able to connect cloud investments to business outcomes. As such, traditional IT metrics and KPIs must continue to evolve. In this blogpost, we’ll explore five key business-value metrics aligned to the five Cloud FinOps building blocks. 
• Whitepaper | Maximize business value with Cloud FinOps
  The cloud introduces new complexity and challenges to traditional IT financial management. As such, it requires strategic financial governance, processes, and partnership across the organization. This whitepaper explains how Cloud FinOps helps enterprises that have invested in cloud to drive financial accountability and accelerate business value.

Run phase 

Improve strategic cloud innovation. 

• Whitepaper | Unit costing: The next frontier in cloud
  In this whitepaper, you’ll explore the nature of and need for cloud unit costing, the standard by which FinOps practitioners obtain full business context for their cloud costs. It features examples from cloud-first organizations that have pioneered FinOps practices. Additionally, it examines several cloud forecasting and budgeting methods, ranging from least to most rigorous. 
• Blog | You get what you pay for: Principles for designing a chargeback process
  Chargeback, a crucial Cloud FinOps capability, is the process of mapping cloud consumption to internal users within an organization. It provides transparency, facilitates accountability,  enables recovery of cloud costs, and fosters a culture of fiscal responsibility. This blogpost will walk you through some best practices in designing an effective chargeback process in Google Cloud. 

Success with Cloud FinOps

As global markets continue to face challenges, there’s never been a better time to increase the return on your cloud investments. Adopting and implementing FinOps practices will help. For some real-world examples of how organizations across a range of FinOps maturity levels have collectively saved millions of dollars on their overall cloud spend, check out these customers’ stories. 

• Video | Next 2022: Top 10 ways to lower your costs on Google Cloud with General Mills
  In this video, which highlights ten leading cloud cost optimization practices, hear how General Mills, which is on pace to increase their cloud footprint by 60%, has approached the discipline of cost savings and accelerated their adoption of Cloud FinOps to drive waste out of their cloud usage. 
• Video | How Nuro optimized their costs on Google Cloud
  In this video, you’ll get an overview of the Google Cloud FinOps framework, a deep dive on cost-optimization best practices, and hear about how startup Nuro AI has adopted their own cost-savings discipline and Cloud FinOps practice. 
• Video | How OpenX reduce per unit costs by 60%
  In this video, you’ll learn how to establish a cost center of excellence within your cloud practice, explore several cost-optimization recommendations, and hear from OpenX about how they reduced their costs on Google Cloud. 
• Case Study | How Sky saved millions with Google Cloud
  In this case study, read how a few years into their cloud adoption journey, media and entertainment company, Sky Group discovered over $1.5 million in savings and optimized costs with BigQuery, Compute Engine, and Cloud Storage. 
• Case Study | Etsy: Doing more with less cost and infrastructure
  In this case study, read how after migrating their data center and ecommerce platform to the cloud, Etsy realized more than 50% savings in compute energy and leveraged committed use discounts (CUDs) to reduce their compute costs by 42%. 

It’s important to remember that FinOps success looks different for different organizations. It’s neither a one-time fix nor a destination reached by way of a single path. But for every organization, success requires small actions, refinement, and continuous improvement. As you leverage Google Cloud FinOps resources and tools, your organization can:

• Drive financial accountability and visibility.
• Optimize cloud usage and cost efficiency.
• Enable cross organizational trust and collaboration.
• Prevent cloud-spend sprawl.
• Break down departmental silos.
• Accelerate innovation. 

Getting started with Cloud FinOps

At Google, we have a team of experts in leading FinOps practices dedicated to helping you create an actionable plan to optimize cloud spend and drive cost efficiency. We’ve created numerous resources to help you get started from any stage in the FinOps journey. 

Whitepaper | Maximize Business Value with Cloud FinOps
This whitepaper outlines steps to help your organization implement FinOps. It details required teams and processes as well as the optimal behaviors, approaches, and outcomes to help maximize your investment on Google Cloud. 

With Google Cloud FinOps, your organization can also accelerate business value in the cloud. To find out more, join us on the Google Cloud Twitter channel twice a month for open Twitter Spaces discussions or reach out to your Google Cloud Sales Representative for a 1:1 discussion.

The last few years have underscored the importance of speed in bringing new drugs and medical devices to market, while ensuring safety and efficacy. Over this time, healthcare and life sciences organizations have transformed the way they research, develop, and deliver patient care by embracing agility and innovation.

Now, the industry is set to reap the benefits of cloud technology and overcome the existing barriers to innovation.

What’s holding back innovation?

Costly clinical trials: The process of trialing and developing new drugs and devices is still long and costly, with more than 1 in 5 clinical trials failing due to a lack of funding.1 The high failure rate comes as no surprise when you consider the average clinical trial costs $19 million and takes 10-15 years (through all 3 phases) to be approved.2

Stringent security requirements: Pre-clinical R&D and clinical trials use large volumes of highly sensitive patient data – making the life sciences industry one of the top sectors targeted by hackers.3 On top of this, the FDA and other regulatory bodies have strict requirements for medical device cybersecurity.

Unpredictable supply chains: Global supply chains are becoming increasingly complex and unpredictable. This can be brought on by anything from supply shortages, to geo-political events, and even bad weather. Making things worse is the lack of visibility into medical shipment disruptions – so when disaster strikes you’re often caught off guard.

Google Cloud for life sciences

At Alphabet, we’ve made significant investments in healthcare and life sciences, helping to tackle the world’s biggest healthcare problems, from chronic disease management, to precision medicine, to protein folding.

Together with Google, you can transform your life sciences organization and deliver secure, data-driven innovation across the value chain.

• Accelerate clinical trials to deliver life-saving treatments faster and at less cost. Clinical trials require relevant and equitable patient cohorts that can produce clinically valid data. Solutions like DocAI can enable optimal patient matching for clinical trials, helping organizations optimize clinical trial selection and increase time to value. How that patient data is collected is also important. Collection in a physician’s office captures a snapshot of the participant’s data at one point in time and doesn’t necessarily account for daily lifestyle variables. Fitbit, used in more than 1,500 published studies–more than any other wearable device–can enrich clinical trial endpoints with new insights from longitudinal lifestyle data, which can help improve patient retention and compliance with study protocols. We have introduced Device Connect for Fitbit, which empowers healthcare and life sciences enterprises with accelerated analytics and insights to help people live healthier lives. We are able to empower organizations to improve clinical trials in key ways:

1. Enable clinical trial managers to quickly create and launch mobile and web RWE collection mechanism for patient reported outcomes
2. Enable privacy controls with Cloud Healthcare Consent API and, as needed, remove PHI using Cloud Healthcare De-identification API
3. Ingest RWE and data into BigQuery for analysis
4. Leverage Looker to enable quick visualization and powerful analysis of a study’s progress and results

• Ensure security and privacy for a safe, coordinated, and compliant approach to digital transformation. Google Cloud offers customers a comprehensive set of services including pioneering capabilities such as BeyondCorp Enterprise for Zero Trust and VirusTotal for malicious content and software vulnerabilities; Chronicle’s security analytics and automation coupled with services such as Security Command Center to help organizations detect and protect themselves from cyber threats; as well as expertise from Google Cloud’s Cybersecurity Action Team. Google Cloud also recently acquired Mandiant, a leader in dynamic cyber defense, threat intelligence and incident response services.

• Optimize supply chains and enhance your data to prepare for the unpredictable. With a digital supply chain platform, we can empower supply chain professionals to solve problems in real time including visibility and advanced analytics, alert-based event management, collaboration between teams and partners, and AI-driven optimization and simulation.

Ready to learn more? We’ll be taking a deep dive into each of the challenges outlined above in our life sciences video series. Stay tuned.

1. National Library of Medicine
2. How much does a clinical trial cost?
3. Life Sciences Industry Becomes Latest Arena in Hackers’ Digital Warfare

Even before the COVID-19 pandemic struck, the consumer packaged goods (CPG) industry was facing disruption. Consumers have come to expect personalized and seamless experiences at every point in their relationship with a brand. Additionally, consumers are expecting CPG brands to meet rising standards for sustainability, social responsibility, and transparency. Business models are shifting as well. Direct-to-consumer and subscription models have been gaining ground on traditional business models. Add in the CPG industry’s ever-present pressure for wider profit margins and the effects of the global pandemic, and you get a perfect storm of disruption. 

Leading CPG companies are responding to these changes by capitalizing on the potential of emerging technologies and leveraging the power of the cloud to create digital enterprises. In doing so, they can unlock value through reduced operational costs, faster innovation, improved marketing ROI, and greater transparency and sustainability—among other benefits. For businesses that run on SAP, accessing these benefits requires creating a digital enterprise with SAP at its heart. 

What CPG can expect from SAP on Google Cloud

SAP drives core business processes across most enterprise functions in CPG companies, and modernizing these operations is step one in unlocking next-level data and analytics capabilities. Creating a digital enterprise with SAP at the core requires establishing a digital foundation on a cloud platform capable of supporting and optimizing SAP workloads well into the future. From there, CPG companies can leverage the combination of SAP data and additional data signals to support high-value use cases utilizing the advanced analytics capabilities of the cloud

For CPG companies, running a successful digital enterprise in this climate depends on the power of the cloud because of the unmatched agility, security, scale, and flexibility offered by cloud technologies. More and more, consumer brands are turning to Google Cloud to host their applications—including core enterprise applications such as SAP—to drive business agility and maximize the value of data through smart analytics and machine learning. Google Cloud establishes a digital foundation for SAP customers by simplifying SAP deployments and offering  a suite of applications that integrates with and enhances SAP functionality. A Forrester study on the total economic value of Google Cloud for SAP customers found an average payback of less than six months and a total ROI of over 160%. By turning to Google Cloud to run their SAP systems, companies are able to: 

• Maximize insights 
  CPG enterprise data is often fragmented across disparate systems. Google’s analytics tools including BigQuery and Looker allow businesses to connect customer, operational and business data at scale by unifying data from SAP systems with other Google data signals such as Ads, Maps, Shopping or Google Marketing Platform. This precious data is fully democratized, allowing for complex queries to be completed rapidly so companies can uncover and analyze insights and create an end-to-end view of the consumer and the business.
• Create an intelligent organization
  Google’s AI and machine learning capabilities allow businesses to create built-in intelligence. Instead of reacting to trends, they can accurately predict them. For marketing teams, this could be the ability to evaluate promotions and effectiveness of marketing spend. For forecasting, product quantities and restock timing can be better planned. Supply chain optimization can include external data sources to closely monitor inventory and eliminate stock outs. 
• Future-proof your business
  Running SAP systems on Google Cloud creates an agile, secure and highly available environment that scales quickly as a business grows and as the CPG market evolves. A recent study conducted by IDC showed that SAP on Google Cloud deployments resulted in a 46% lower three-year cost of operations with 83% less frequent unplanned downtime and 56% more efficient IT teams. This frees IT resources to drive innovation and customer centricity. 
• Deliver on sustainability 
  Around the globe, consumers are becoming more and more demanding regarding sustainability. The impact of climate change and the abundance of plastic waste is only fueling this trend. Consumers are leaning into social signalling, and CPG companies are taking note. Sustainable IT is step #1, significantly advanced by  moving applications to Google Cloud, the cleanest cloud in the industry. We’ve neutralized all of our carbon emissions since our founding in 1998 and matched 100% of our electricity consumption with renewable energy purchases since 2017. Google Cloud allows SAP enterprises to further drive sustainability compliance and business objectives with AI and ML tools that can drive down waste and provide real-time decision making power to support proactive green initiatives. 

Rémy Cointreau is in high spirits after deploying SAP in the Google Cloud

Rémy Cointreau, a family-owned international maker of fine spirits, has products that can take up to one-hundred years to produce. But this long production cycle presents some unique challenges in today’s hyper-competitive premium beverage brands market. Since 1724, the company has been consumed with putting its customers first. In 2020, the company realized it was failing to capitalize on the benefits that the cloud can provide and began searching for a business partner that could help with this transformation.  

Rémy Cointreau made the move to Google Cloud for many reasons. First, the company could connect its SAP backbone to key SaaS applications like Salesforce. This enabled the creation of a 360-view of data among its ecommerce platform, SAP, and Salesforce to deliver sophisticated customer experiences that reflect the heart of the brand. The Rémy Cointreau team quickly realized they now had the ability to be more agile in their finance, manufacturing, and supply chain functions with easy access to valuable SAP system data that drives decision-making. Sebastien Huet, the company’s CTO, explains: “Now that we’re fully deployed on Google Cloud Platform, anything is possible. We can pull data in from multiple sources via integration and analyze it in a matter of days. We don’t need a three-month project to see value.”  

In today’s on-demand, omnichannel world, it’s not enough for CPG brands to understand their consumers. For companies like Rémy Cointreau, it is mission-critical that they anticipate consumer preferences and deliver personalized experiences. The winners will be the companies that can reduce time to insights by treating all their data as strategic assets, breaking down data silos to enable real-time business intelligence. With SAP on Google Cloud, CPGs are transforming consumer relationships and business outcomes.

Are you ready to change how your CPG brand operates? Check out this video and read the Google Cloud for SAP CPG customer white paper and ebook.  Learn more about how your peers are leveraging SAP on Google Cloud to evolve their businesses.

Enterprises today have a very broad mix of networks — from SD-WANs, dedicated WANs such as MPLS, cloud interconnects, to VPNs. At the same time, they’re moving those WANs to the cloud to take advantage of faster turn-up, lower cost, and increased feature velocity. As workloads migrate to the cloud and multi-cloud environments, we believe that it’s critical to simplify enterprises’ networking model.

Each major cloud provider uses distinct abstraction models to configure networks or connections between your resources. Some use gateways, some use connections or links. Network Connectivity Center, launched last year, provides a simple management solution for your network connection, and is now Generally Available.

In this post, we outline the typical connectivity use cases for customers to help you select and set up the best connectivity option for your environment.

Understanding cloud network connectivity

Cloud networking refers to the ability to connect two resources together inside a cloud, across clouds and with on-premises data centers. A cloud provider needs to provide three main types of connectivity:

• Site-to-cloud – Between on-premises equipment and cloud resources
• Site-to-site – To connect on-premises resources together
• VPC-to-VPC – Connectivity between cloud resources
• Let’s take a look at each one.

Site-to-cloud connectivity

Site-to-cloud connectivity traditionally is done via a cloud interconnect or a cloud VPN. The automatic exchange of routes between on-premises and multiple VPCs can be done using a transit VPC.

A newer approach is to add cloud providers into an SD-WAN mesh using a router virtual appliance in Google Cloud. Network Connectivity Center brings the capacity to synchronize the appliance routes dynamically via BGP to Cloud Router and hence their VPCs. It enables connectivity between on-premises data centers and branch offices and their cloud workloads via SD-WAN-enabled connectivity. This capability is available globally across all 29+ Google Cloud regions. Several of our partners also support this capability in their router appliances.

Site-to-site connectivity

Site-to-site connectivity enables network connectivity directly between two or more hybrid connection points (VPN, Interconnect or SD-WAN). Network Connectivity Center simplifies this model by automating the routing announcements in this environment, such that all sites connected to a single global Network Connectivity Center hub are able to communicate freely in any-any fashion. You can see an example of this for a specific market vertical use case in a recent blog, Voice trading in the cloud — digital transformation of private wires.

VPC-to-VPC connectivity

You can create a full or partial mesh of VPC connections using multiple technologies, with VPC peering being the most common. VPC peering provides highly performant, low latency, private connectivity for customer networks connected via hybrid connectivity and Network Connectivity Center to multiple VPCs containing workloads, which can be segmented via granular firewall policies as needed. Alternatively, you can use a transit VPC model to connect multiple VPCs together in a hub and spoke topology.

With tight integration with third-party router appliances as mentioned earlier, you can also leverage their third-party supported solutions such as next-generation firewalls to connect your VPCs together to meet specific compliance and segmentation requirements. Network Connectivity Center allows you to synchronize the routing tables of these appliances with your VPC’s routing table, simplifying the process of setting up redundant configurations.

What’s next for cloud networking connectivity in Google Cloud?

As enterprises continue to migrate different types of workloads to public cloud providers, networking topologies are becoming more complex. In summary, we have solutions for all connectivity needs. We aim to keep our models and solutions understandable and simple. Over time, look for Network Connectivity Center to become Google Cloud’s single point of configuration for all your connectivity needs, with capabilities to handle the most complex network.