Editor’s note: Earth Day reminds us that we all can contribute to creating a cleaner, healthier, and more sustainable future. Google Cloud is excited to celebrate innovative startup companies developing new technology and driving sustainable change. On this year’s Earth Day we’re highlighting Enexor BioEnergy and their initiative to produce clean, sustainable energy from plastic and agro-waste with the help of Google Cloud solutions.

Picture a world without electricity where billions of people burn dangerous fuels and trash from landfills to cook meals and heat their homes. Children constantly cough, choking on toxic smoke that lingers in houses and sickens entire families. Because there are no pumps or purification plants, contaminated water is hauled in buckets from dirty rivers and polluted wells. Without power or lights, hospitals and emergency medical clinics can only provide basic services during the day.

Although it is 2022, this harsh life is a reality for billions of people living in developing countries around the world.

Producing clean energy from plastics and organic-waste

This Earth Day, let’s imagine what life would be like in these countries if people had access to safe and inexpensive bioenergy. In this world, indoor air is fresher. Clean water runs from faucets, while homes, businesses, and schools have electricity. Doctors and nurses have the power to treat patients 24 hours a day and save lives with advanced medical equipment. Local economies boom and entrepreneurs thrive.

This is the sustainable future Enexor BioEnergy and its partners are building—one village at a time. With the Enexor Bio-CHP™ system, we produce clean and sustainable energy from discarded plastics, organic, and biomass-waste such as rice and corn husks, seaweed, coconuts, and other biomatter while offsetting significant Carbon emissions. The Bio-CHP can be commissioned and easily installed in just a single day, with multiple systems installed side-by-side when more power is needed. By being offered under its novel Energy-as-a-Service business model, Enexor ensures that the Bio-CHP can generate immediate environmental positive impact and customer adoption.

Each Bio-CHP unit generates enough energy to power over 100 homes—and provides much-needed renewable electricity and thermal power for schools, businesses, manufacturing facilities, water pumps, Wi-Fi systems, and telecommunications towers. The Bio-CHP creates clean energy by safely oxidizing plastics and biomatter in a secure container using a high-temperature system to power a micro-turbine. This produces bioenergy, significantly reducing harmful greenhouse gas emissions.

By solving a community’s waste issues while providing more affordable renewable energy, the Bio-CHP also creates new economic opportunities and improved outcomes where it is installed. This includes using its inexpensive power to expand local services and offerings, and empowering local community clean up efforts by incentivizing waste collection via blockchain-enabled digital currencies and services such as PayGo. Additionally, the Bio-CHP is an ideal solution for businesses who desire to maximize their own sustainability efforts, gain greater energy resiliency, and save money on their current energy and waste costs.

Engaging in Google for Startups Accelerator: Climate Change

When developing the Bio-CHP, we realized we needed a reliable and experienced partner to help us incorporate the best in class machine learning and artificial intelligence into our technology. That’s why we joined the Google for Startups Accelerator and participated in the Google for Startups Accelerator: Climate Change.

The accelerator introduced us to other companies working to create a sustainable future and opened new opportunities for collaboration and partnerships. The accelerator also continues to give our small team access to the best of Google Cloud’s people, programs, and solutions. We especially want to highlight Google Cloud’s dedicated startup experts and the incredible technical support they provide, as well as the Google Cloud research credits we used to explore new solutions.

As an example, Enexor is developing a predictive maintenance tool that automatically adjusts Bio-CHP operations to match fuel composition. Another tool in development proactively identifies and flags potential Bio-CHP system and component failures—before they occur.

Google Cloud’s dedicated startup experts work closely with Enexor to develop predictive models for these tools and Enexor also used the Google Cloud research credits that were provided to build these advanced models on TensorFlow, Vertex AI, Cloud CDN and AutoML. Since each system is remotely monitored from Enexor’s global headquarters in Tennessee, predictive maintenance tools also increase the safety, reliability, and efficiency of Bio-CHP in off-grid locations.

Generating 13 billion kWh of clean power by 2040

In the future, Enexor plans to explore additional Google Cloud solutions such as BigQuery to crunch larger datasets, Google Data Studio to build dashboards, and perhaps even Google Cloud Tensor Processing Units (TPUs) to more efficiently process machine learning (ML) workloads.

These solutions will help Enexor to achieve three primary goals by 2040: to generate 13 billion kWh of clean power, reduce 120 million tons of CO₂, and provide one million people with access to clean and sustainable energy. With each Bio-CHP system, Enexor annually reduces up to 2,000 metric tons of CO₂ equivalent emissions by decreasing methane emissions released from landfills, offsetting fossil fuel-based power generation with carbon credits and minimizing waste disposal transportation emissions.

Enexor is now preparing to deploy the Bio-CHP in Accra, Ghana where it will convert organic and plastic manufacturing waste into sustainable energy. Enexor is also looking forward to working with the local Accra community and NGOs to collect discarded plastics and organic waste diverting it from ending in the rivers and oceans and instead using them as renewable fuel sources. We can’t wait to see what we accomplish next as we celebrate Earth Day 2022 and think about the sustainable future Enexor is helping to empower.

If you want to learn more about how Google Cloud can help your startup, visit our page here to get more information about our program, and sign up for our communications to get a look at our community activities, digital events, special offers, and more.

IT leaders today are being asked to simultaneously support their company’s infrastructure, find opportunities for growth, and meet their goals with fewer resources and smaller budgets than before. Recently we highlighted three customers who are leveraging Google Cloud VMware Engine to achieve these goals while lowering their TCO and transforming their organization. 

It’s because of these successful customer outcomes that we have been awarded the 2023 VMware Cloud Innovation and SaaS Transformation partner achievement award for delivering solutions that accelerate customers’ digital transformation journey. We’re honored to receive this award and continue to stay focused on delivering tremendous value to our customers.

In the past few months, we’ve also made several updates to Google Cloud VMware Engine. Today’s post provides a recap of the latest milestones that make it easier for you to migrate and run your vSphere workloads in a cloud-first, enterprise-class VMware environment in Google Cloud. 

Back in September 2022, we announced a number of updates including the preview of API/CLI support (which is now available). In February 2023, we also talked about how to use NetApp CVS as datastores for VMware Engine.

Key updates this time around include:

Availability of VMware Engine in Delhi, Santiago and Milan regions: This brings the availability of VMware Engine to 17 regions worldwide, each supporting 4 9’s of uptime SLA for clusters 5 or more, serving the needs of our regional and multi-national customers. In addition, we have also added a second zone in the London region.

Filestore datastore support for VMware Engine: Generally Available in all VMware Engine regions, you can use Filestore High Scale and Enterprise tier instances as external NFS datastores for VMware Engine nodes. Filestore is VMware certified as an NFS datastore with VMware Engine. You can size compute and storage capacity independently to meet your workload requirements for your storage-intensive VMs. You can also leverage vSAN for low-latency VM requirements and scale Filestore from TBs to PBs for the capacity hungry VMs. If interested in this feature, please contact your Google account team.

Stretched private clouds: These private clouds stretch across two data zones and a witness zone all within the same Google Cloud region. Stretched private clouds use vSphere and vSAN stretched clusters to provide compute and storage high availability against zone-level failures. This capability is now available in Frankfurt and Sydney regions. Learn more here.

Zerto solution version 9.5u1 support: This recovery solution allows critical infrastructure and application virtual machines (VMs) to be replicated continuously from your on-premises vCenter to your private cloud. Learn more about setting up Zerto here.

Google Cloud Backup and Disaster Recovery (GCBDR): GCBDR is available to protect applications running in VMware Engine, and can be managed within the Google Cloud Console. We recently launched GCBDR under Google Cloud Platform Terms of Service simplifying customers’ purchasing and support experience. 

vTPM support: Google Cloud VMware Engine private clouds now support the addition of a Trusted Platform Module (TPM) 2.0 virtual cryptoprocessor to a virtual machine. You can add vTPMs to VMs by following VMware instructions or upgrading your existing VMs to include a vTPM. You can read more about this in the VMware blog.

This brings us to the end of our updates this time. For the latest updates to the service, please bookmark our release notes.

Built for a CapEx world, most organizations’ finance systems aren’t set up to take advantage of cloud’s dynamic, OpEx-driven consumption patterns.

It may not be a household name yet, but chances are you’ve crossed paths with OpenX today. OpenX, a leader in programmatic advertising, operates one of the world’s largest ad exchanges, serving over 250 billion ad requests per day, connecting more than 30,000 brands and reaching nearly one billion consumers. To make it happen, in 2019, OpenX migrated entirely out of its data centers and became the first major ad-exchange platform to move completely to the cloud.

The OpenX CTO, Paul Ryan, knew that this cloud transformation initiative had the potential to increase costs faster than its revenues. To be successful, he needed his engineering, finance, and business teams to forge a new “cost-aware” culture, complete with effective cost visibility and controls. In other words, he needed Cloud FinOps — an operational framework and cultural shift that brings technology, finance, and business together to drive financial accountability and realize business benefits through cloud transformation.

Ryan laid out a cloud migration roadmap that included cost governance and controls around project ownership, established cost responsibility with engineering teams to accurately forecast cloud consumption, and challenged developers to lower per-unit costs — while at the same time improving performance, scalability, speed and global reach.

It worked! In just 9 months, OpenX reduced their per-unit cost by over 60%. The framework allowed OpenX to launch new regions in a matter of days, reduce their time to market for new features by over 50%, and complete their migration in record time — seven months! “We are now able to stop worrying about legacy infrastructure and focus more on our growth categories,” said Ryan. “Our tech stack is getting smarter and more sophisticated by the day, and we have the flexibility to scale our infrastructure in real-time as the business scales and evolves.”

Unblocking Cloud’s Potential

Cloud holds the key to a successful digital transformation. In fact, McKinsey forecasts that by 2030, the Fortune 500 alone may realize over $1 trillion of EBITDA value drivers associated with public cloud enablement. But unlike OpenX, many companies struggle to achieve near-term value objectives from their cloud investments. Surveys reflect that more than 30% of cloud spend in 2021 was wasted or inefficient, while upwards of 80% of CIOs have yet to achieve the business benefits of migrating to the cloud.

Traditional IT finance processes are ill-suited for cloud infrastructure: Traditional planning and budgeting processes are challenged to address dynamic consumption patterns and complex migrations. Centralized IT budgets using traditional allocations fail to provide the necessary visibility into sources of cost overruns. CapEx-focused cost controls have little ability to manage largely OpEx-driven spend. Trend-based forecasting often inaccurately predicts cloud costs. And developer teams lack access to cost-aware architecture patterns to deploy the applications more efficiently.

Enter Cloud FinOps

At Google we’ve worked with many companies, like OpenX, to help organizations realize the transformational benefits of the cloud by cultivating a culture of transparency and embedding agile processes to manage costs. We’ve distilled these learnings into a Cloud FinOps operational framework that gives organizations the financial governance and accountability they need to grow their business sustainably.

At a high level, a Cloud FinOps approach depends on five key areas:

1. Accountability and Enablement

Accountability and enablement aim at instilling a cost-conscious culture across the organization. Oftentimes, this means standing up a cross-functional and dedicated team with members from technology, finance and engineering to establish cloud financial best practices and governance. In various organizations, we’ve seen this through an extension of a Cloud Center of Excellence, a Cloud Business Office or simply a Cloud FinOps team. Enablement focuses on empowering IT, finance and business leaders through training to help them better understand the economics of cloud services and the strategies to efficiently deploy and manage them. Cloud financial training guides teams on how to design cost-effective cloud environments, for example, embracing ”cloud-native” design principles such as auto-scaling/elasticity and Infrastructure as a Code.

2. Measurement and Business Value Realization

Effective measurements not only create awareness and enable agile processes, but also support a culture that celebrates success and rewards teams for achieving business objectives. As such, measurement in the service of business value realization is about developing a comprehensive set of long-term benefits and cost KPIs to quantify the total net value of the return on digital transformation. Organizations often start with cost-related KPIs and eventually evolve those KPIs into business value metrics that are mapped to targeted business outcomes.

3. Cloud Cost Optimization

Cloud cost optimization is an iterative and continuous process that provides a consistent methodology to manage cloud consumption cost-effectively. There are three key areas of optimization:

Resource optimization – Model cost-effective cloud usage based on utilization and consumption patterns.
Pricing optimization – Manage cloud spend through a continuous analysis of various pricing models. In a Google Cloud context, that might mean Committed Use Discounts, BigQuery flat rate reservations, etc.
Architecture optimization – Build applications with a cost-aware architecture by leveraging newer generation compute instances (like Tau VMs, which offer an industry-leading 42% better price-performance versus comparable offerings), or using managed services and serverless technology to offload operational overhead.
For example, video hosting, sharing and services platform provider Vimeo built transcoding pipelines by using Google Cloud Spot VMs to optimize their infrastructure spend. To do so, they created fault-tolerant workloads that could withstand preemptions, and in exchange, got up to a 91% discount compared to using regular on-demand instances.

4. Planning and Forecasting

In the cloud, accurately forecasting your finances requires rethinking of traditional approaches to depreciation and trend-based forecasting of maintenance and licensing costs. One way to improve the accuracy of your dynamic cloud needs is to use workload-specific forecasting models that leverage a combination of trend-based models for steady-state workloads, driver-based models for scaling applications, as well as monthly variance analysis. In other words, you can define cloud budgets and forecasts by monitoring cloud consumption trends, allocating cloud cost pools with a proper tagging strategy that’s mapped to a chart of accounts in a general ledger, and conducting a cost-benefit analysis based on cloud infrastructure, implementation, and support costs.

5. Tools and Accelerators

Without the proper tools and processes in place, understanding and managing cloud costs can be complex — and this especially true as organizations scale their business in the cloud. By deploying proper cloud cost management tools and accelerators such as Looker Cloud Cost Management and automation scripts to set guardrails and enforce cost control policies, organizations can effectively manage and track cloud spend with access to near-real-time billing and cost data to make better informed business decisions.

The key objectives of Google Cloud Cost Management tools are to make it as simple as possible for organizations to get visibility into their current and forecasted costs with built-in reporting and customizable dashboards; help drive greater accountability for cloud spending across the organization by providing flexible ways to organize cloud resources and allocate costs; provide strong financial governance controls to reduce the risk of overspending; and offer intelligent recommendations for optimizing cloud costs and usage.

Start Saving with Cloud

Businesses are continuously seeking to better operate and manage their cloud environments and the need is ever increasing to transparently manage cloud spend, optimize costs, and obtain their desired business agility. By enhancing your Cloud FinOps capabilities and adopting principles of continuous cost optimization, you too can accelerate the business value of cloud computing.

Special thanks to Bruce Warner, Daniel Petibone, Nihar Jhawar and FinOps Foundation community for their contributions and sharing their domain expertise to this important Cloud FinOps topic.