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.

Every cloud system begins with high-quality hardware infrastructure. Sometimes, however, hardware breaks — and when it happens, our most important goal is to minimize the impact on our customers and their cloud workloads.

Memory errors are the most common type of hardware failure, and they’re also one of the most challenging in terms of their impact on production workloads and system reliability. That’s why we’re excited to share what Google Cloud has been doing to minimize the impact of memory errors. If your business runs SAP HANA in the cloud, this is an important innovation —  one that Google Cloud is proud to deliver to our customers.

Memory errors: A big problem with a long history

First things first: Memory errors are a high priority because they happen often. And when they happen, the disruption can have far-reaching effects on your customers and your business. 

In 2009, Google Cloud published the first major study on memory reliability. We found an average error rate of over 8% per year in DIMM modules installed in production systems. Given that each generation of DDR RAM packs more capacity into smaller packages, it’s safe to think that memory hardware has become less reliable since then.

Memory error impacts: They could be worse, but they’re far from good

What happens when a system detects a bad segment in a DIMM module? While data loss or corruption from memory errors is not common, some errors are correctable but some are not, potentially resulting in a critical system failure..  

Modern CPUs are equipped with error-correcting memory features and are very good at correcting simple errors with ECC (Error Correction Code). The challenge is that most of the software that runs on a host system — whether it’s a hypervisor, a virtual machine, an operating system, a database or an application — will crash instantly when it encounters an uncorrectable memory error. In a cloud environment, this kind of crash can take down cached data and even data saved to a local SSD. The crashed applications will recover, but the process means several minutes of downtime. The more data you have, the longer this process will take.

Sometimes, that’s merely an inconvenience. Other times, it’s a very big deal. A Google Cloud customer running business-critical SAP applications and an in-memory HANA database might measure downtime costs well over $10,000 per minute in lost revenue and other direct impacts. Many HANA databases load into terabytes of memory, and it can take an hour or longer to get everything restarted and back to normal after a crash. For SAP HANA, a fast recovery with up to 10 minutes of downtime requires a redundant replica provisioned all the time, doubling the cost.

And statistically speaking, when a HANA instance occupies almost all of the memory on a host system, it’s also the most likely application to stumble across a memory error. You can see why this would be a problem.

 The ‘victim neighbor’ VM challenge

There’s a final problem to consider when a memory error takes out production applications: what we call the “victim neighbor” issue.

In any cloud, a single physical host is a multi-tenant environment that might run dozens of VMs, potentially owned by dozens of different customers. A memory error won’t just crash the VM actually using the bad section, it will crash every VM running on the system. That’s a standard VM response to memory errors on a host system, and it will happen to any VM architecture available on the market today to avoid memory corruption. 

Overall, this “victim neighbor” effect accounts for more than 90% of the VMs that get knocked down by a memory error on a physical server. That’s a huge blast radius for such a common problem.

A practical solution to memory-error impacts

You can see why managing this problem is a big deal for Google Cloud. While we know that some failures are inevitable, we have developed another way to tackle the problem. Google Cloud already maintains some unique and valuable tools, such as Live Migration, that help our customers minimize unplanned downtime.When we integrate these tools with recent work that leverages error-handling capabilities built into CPUs (courtesy of Intel) and into certain applications (in particular, SAP HANA), we get a solution that dramatically reduces downtime and disruptions related to memory errors — in many cases, to the point where customers won’t even know there was a problem.

The Google Cloud solution: Memory poisoning recovery

At a big picture level, we refer to our solution as Memory Poisoning Recovery (MPR). It combines some existing Google Cloud capabilities, some new capabilities, and some important third-party capabilities at the CPU (Intel) and application (SAP HANA) levels. MPR can be broken down into two main processes:

Memory Error Isolation 

• Step 1: We hardened our VM technology to be more robust against memory errors. We intercept and analyse the memory error coming from the system. Then we flag the signaled region of a memory DIMM with an uncorrectable error as “poisoned”. 
• Step 2: Then we trigger processes to keep track of these “poisoned” regions and the VMs they affect so they can’t affect data integrity. 

Memory Error Recovery

• Step 3: Then we notify the Guest OS & the MCE-aware applications that a memory error has been recorded, in a manner that allows the applications to execute application relevant memory error handling.
• Step 4: At the same time we communicate with Google Cloud Live Migration to begin moving guest VMs off the affected host. This ensures customers are running on a healthy host which reduces the probability of more uncorrectable errors happening and avoids further downtime.

Below is a simple visual of how this all works:

How MPR makes life better for customers

Let’s look again at the different groups of Google Cloud customers involved in a memory error scenario and how we can help them achieve a happier ending after a crash — starting with the customer running the VM and application that actually triggered the memory error. 

Customer Group: MCE-Aware SAP HANA with Fast Restart enabled on a VM directly affected by a memory error.

Customer Group: Customers running other, non MCE Aware applications on a VM directly affected by a memory error

Next, our “victim neighbors” group probably won’t even know there was a problem with the host system. Google Cloud Live Migration will move them to a new host, instantly and automatically, and avoid the crash-and-restart scenario.

Customer Group: Customers running other, any application on a VM not directly affected by a memory error

Simple steps for taking advantage of MPR

Our MPR capabilities will be available on our Google Cloud memory-optimized Compute Engine second generation instances in Q4 of 2021. We’ll continue to roll out the capability during the months ahead to additional instances and look for new ways to work with applications that adopt a MCE Aware architecture.

Most customers in the “victim neighbor” category will not need to lift a finger to experience the benefits. By marrying our Live Migration feature to some awareness of those MCE signals, we ensure that it hears the alarm first and gets a critical head start on the migration process before issues begin with the guest VMs. Our customers land safely on a new host, and their applications keep running.

For our SAP customers running HANA, MPR is all about protecting against loss. Unplanned downtime for a HANA environment is incredibly expensive, the recovery process from a hard crash is extremely long, and the business disruptions can be truly damaging to the business. Thanks to MPR, all of that cost and worry can get compressed almost to nothing — with Fast Restart reducing what can be an hour or more of downtime to a matter of seconds.

But our SAP customers have to take a critical first step to claim these benefits. Fast Restart is a crucial piece of the MPR solution, and it is not enabled by default. Configuring your SAP HANA instance for Fast Restart involves changing a few configuration settings; the process is fast, easy, and doesn’t involve risk. 

Finally, if you’re not running your workloads — SAP or otherwise — on Google Cloud, consider the benefits of running on a cloud that mitigates a hardware reliability issue affecting businesses of every size and industry. And consider the value of tools like Live Migration that already help Google Cloud customers improve uptime and reduce risk.

Hardware failures happen, and they probably always will. But we’re proving how valuable it can be to avoid the bad things that usually happen when memory failures occur. Right now, only Google Cloud has a practical solution to this very difficult problem.    

Learn more about Fast Restart for SAP HANA, Live Migration and other key Google Cloud capabilities for your SAP environment.

Editor’s note: February is Black History Month—a time for us to come together to celebrate the diverse set of experiences, perspectives and identities that make up the Black experience. Over the next few weeks, we will highlight Black-led startups and how they use Google Cloud to grow their businesses. Today’s feature highlights Acclinate and its founders, Del and Tiffany. 

As patients, as caregivers, and as parents taking our own children to the doctor, we want recommended medications to be safe and effective. It’s a right everyone deserves.

It’s known that certain medications don’t work in the same way in all populations. For example, Albuterol, a medication often prescribed for asthma, is less effective in 67% of all Puerto Ricans and 47% of Black Americans. These problems—which can have deadly consequences—result from historically limited diversity in pharmaceutical clinical trials. 

We founded our startup Acclinate to integrate culture and technology to achieve more inclusive clinical research. Help pharmaceutical companies and healthcare organizations access and engage communities of color so research is more inclusive.

Bridging the health equity gap by building trust

It’s important that health research organizations access and engage communities of color so their efforts reflect all the people they serve. Take a disease like diabetes, which affects a significantly higher proportion of Black Americans. When you look at even recent clinical trials for diabetic drugs, the representation of Black Americans among participants is only in the low single digits, despite comprising 13 percent of the U.S. population and more than 40 percent of diabetes patients in this country. Industry leaders have been aware of the lack of diversity issue, but some have chosen to ignore it or brush it aside. The biggest problem, in our opinion, is that there have been no penalties for not achieving higher diversity figures in clinical trials, and only minor financial repercussions to pharma/biotech companies when their treatments either do not work across all groups once approved, or there is a lack of uptake by all groups due to the lack of testing in those groups. The lack of clinical trial diversity has adversely impacted the reputation of the industry and the ability to recruit diverse populations in the future. 

Acclinate integrates culture and technology to promote diverse patient representation in medical research. Our approach is not transactional. We build trust through our  #NOWINCLUDED community, which is an ongoing, ever-expanding digital platform that educates and engages with communities of color on health issues.

#NOWINCLUDED includes a website app, and social media presence where members can learn information about diseases, particularly those with greater negative impacts on people of color, such as cancer, diabetes, and cardiovascular diseases. Members can share stories and ask questions. By providing access to trusted resources about these health issues and the latest clinical research, we empower Black people to take control of their health and consider  participating in research that is shaping the future of healthcare.  

For healthcare-related organizations, we offer the opportunity to better understand the attitudes, aspirations, and unmet needs of underrepresented minority communities. Data from #NOWINCLUDED feeds our HIPAA-compliant SaaS platform, e-DICT™ (Enhanced Diversity in Clinical Trials), which uses predictive analytics and machine learning to identify individuals matching the requirements and most likely to be receptive to participation in a particular clinical trial.

Acclinate scales its platform with Google Cloud

We rely on Google Cloud services, including Vertex AI, to know whom to ask, when to ask, and how to ask for clinical trial participation. With Vertex AI, we enjoy a unified platform for developing our artificial intelligence models, including tools for preparing and storing our datasets. We can easily train and compare models using AutoML, which requires minimal ML expertise or effort with its intuitive graphical interface. This allows us to leverage more than ten ordinal and categorical data points to determine in real time a community member’s likelihood to enroll, which we call our Participation Probability Index (PPI). Our models evolve in an iterative process the more we interact with, and learn about, our community members.

We follow the pay-per-use Google Cloud Platform architecture model using serverless technology, which helps reduce infrastructure management costs and lets us focus on product development and engaging with communities across the U.S.

CloudSQL, a fully managed relational database service, integrates easily with BigQuery so we can glean insights for our clients in real time, all with Google Cloud’s robust security, governance, and reliability controls. Virtual Private Cloud (VPC) gives us scalable and flexible networking for our cloud-based resources and services. We also use Identity and Access Management (IAM) to simplify oversight of Google Cloud resource permissions for different user groups and roles, with appropriate security protections. 

API Gateway manages our APIs using Cloud Functions, which both use consumption-based pricing, plus give our developers consistent and highly secure access to our services through a well-defined REST API. We use Memorystore for Redis to reduce platform latency. This is done with a fully managed service powered by the Redis in-memory data store, which builds application caches for fast data access. All of this comes together to provide an outstanding experience for our platform’s users and contributors.

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Expanding influence with the Google for Startups Accelerator for Black Founders

Three months of one-on-one Google support and mentorship as part of the most recent Google for Startups Accelerator : Black Founders cohort not only helped us build our product, but also helped us earn external credibility. People use Google every day, so whether we’re trying to engage in conversations with industry experts or with somebody in a rural community, it is helpful to have the buy-in of a globally-recognized brand as we take on a historically difficult, systemic issue with challenges around trust. Getting access to the products, best practices, and people we need to build and grow through the Accelerator program has been priceless. For example, working with the Google AdWords team helped us generate important traffic from people interested in learning more about #NOWINCLUDED or sharing their story with us. Jason Scott, who leads the Google for Startups Accelerator: Black Founders program, is still connecting us to people in his network and identifying key opportunities for us months after the program wrapped. He continues to demonstrate that he is invested in seeing us succeed. 

Our company has made great progress against our goals, in part thanks to receiving capital from the Google for Startups Black Founders Fund. We received $100K in non-dilutive funding along with Google Cloud credits, Google.org Ads grants, and hands-on support. We used the funds to pay for the transition and development costs associated with moving to Google Cloud. The Google support and accountability has been incredible. After receiving the Google for Startups Black Founders Fund award, we’ve gone on to raise another $1M and moved our cloud from Salesforce to Google Cloud. 

We also had the amazing opportunity to be selected as one of six companies to take part in a face-to-face web conference with Sundar Pichai, Google’s CEO. We were thrilled to hear him explain his vision around health equity and the role Google plays. Ultimately, for us, it’s not just about the funding we get, but we are also gratified to receive support from an entity that truly believes in addressing this issue. We know Google is aligned with our mission of health and racial equity. 

Championing diversity in clinical trials

Our 2022 looks bright. We expanded our presence to Washington, D.C. as part of the Johnson & Johnson Innovation JLABS ecosystem. We were also selected to take part in the BLUE KNIGHT initiative created between Johnson & Johnson Innovation and the Biomedical Advanced Research and Development Authority (BARDA) under the U.S. Department of Health and Human Services. 

Acclinate is also on track to have contracts with five of the top 25 largest biopharmaceutical companies in the U.S this year. They’ve taken note, as has the Food and Drug Administration (FDA), that the lack of diversity in clinical trials represents a significant health concern—to the extent that the FDA has provided strong guidance for pharmaceutical companies to  diversify their clinical trials. At the same time, the industry is also responding to pressure from communities of people of color to make equitable representation a priority.

Today, we are in the fortunate but challenging position to have significant inbound opportunities coming our way. In response, we continue to recruit and hire talented people to join our team. On the technology side, we are happy to be aligned with Google Cloud to have powerful cloud infrastructure that will scale with us, as well as high-caliber champions united in partnership. With people’s lives at stake, we are passionate in our commitment to helping ensure medications do what they are supposed to do: heal and improve the quality of life for everyone who takes them. 

Hear Acclinate cofounders Del Smith and Tiffany Whitlow chat with Google’s Head of Startup Developer Ecosystem Jason Scott and fellow Black Founders Fund recipient Bobby Bryant about building on Google Cloud in a recent Google for Startups Instagram Live. 

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