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.

Since Aristocrat’s founding in 1953, technology has constantly transformed gaming and the digital demands on our gaming business are a far cry from challenges we faced when we started. As we continue to expand globally, security and compliance are top priorities.

Managing IT security for several gaming subsidiaries and our core business became more complex as we entered into new markets and scaled up our number of users. We needed a centralized platform that could give us full visibility into all of our systems and efficient monitoring capabilities to keep data and applications secure. We also needed the ability to secure our systems without compromising user experiences.

We turned to Google Cloud and Splunk to better manage complexity and support highly efficient, secure, and more dynamic gaming experiences for everyone. We are committed to using today’s modern technologies to give players more optimal experiences.

Bringing our digital footprint into the cloud

When we set out on our digital transformation, we looked to address many business requirements.

These requirements included:

• Regulation: We wanted a platform that could efficiently address our industry’s stringent and global regulatory compliance requirements.
• Player experience: Our IT environment must support smooth gaming experiences to keep users engaged and satisfied.
• Scalability: As we grow and diversify, meeting the changing demands of an increasingly global gaming community, we need an easily scalable platform to align with our current and future needs.

Google Cloud offered us the perfect foundation through solutions such as Compute Engine, Google Kubernetes Engine, BigQuery, and Google Cloud Storage. These acted as the right infrastructure components for us for the following reasons:

• Google Cloud is globally accessible and supports compliance, helping to streamline security and regulatory processes for our team.
• With Google Cloud, we can manage our entire development and delivery processes globally with fast and efficient reconciliation of regional compliance requirements.
• When we need to adjust existing infrastructure or deliver new capabilities, Google Cloud accelerates the process and takes the heavy lifting off of our team.
• Google Cloud allows us to support tens of thousands of players on each of our apps while experiencing minimal downtime and low latency. The importance of this support can’t be underestimated in an industry where players have little to no patience if lags in games occur.

We migrated our back-office IT stack alongside our consumer-facing production applications to Google Cloud given our positive experiences with compliance, security, scalability, and process management. This migration has significantly accelerated our digital transformation while streamlining our infrastructure for faster and more cost-effective performance.

In many ways, Google Cloud has been, with maybe a pun intended, a game-changer for us. For instance, when we suddenly had to support a lot of remote work during the COVID-19 pandemic, native identity and access management tools in Google Cloud allowed us to retire costly VPNs used for backend access and quickly adopt a more easily managed, cost-effective zero-trust security posture.

Accessing vital third-party partners and managed services

Aristocrat has many IT needs best addressed in a multi-cloud environment. Google Cloud is particularly attractive given its strong cloud interoperability, as well as the many products and services available on Google Cloud Marketplace. The marketplace accelerated our deployment of key third-party apps including Splunk and Qualys.

Given the personal information we store and the global regulatory compliance statutes we must oblige, security lies at the heart of our business. Splunk is a critical component of our digital transformation because it offers solutions that provide the enhanced monitoring capabilities and visibility we need. The integration between Splunk and Google Cloud gives us confidence that our data is secure. We know our data can be secure in Google Cloud, while simplified billing through Google Cloud Marketplace makes payments and license tracking easier for our procurement team.

As part of our protected environment, we use the Splunk platform as our security information and event management system, leveraging the InfoSec app for Splunk that provides continuous monitoring and advanced threat detection to significantly improve our security.

We can manipulate and present data in Splunk in a way that provides us with a single pane-of-glass for our hybrid, multi-cloud environment and our third-party apps and systems. Splunk observability tools have likewise helped us to track browser-based applications like our online gaming apps to monitor details related to security and performance.

Splunk and Google Cloud have transformed how we operate. We can now quickly ingest and analyze data at scale within our refined approach to security management by offloading software management to Splunk and Google Cloud. This ability enables us to approach security more strategically, and positions us to integrate more AI/ML capabilities into our products for even greater governance and performance.

This is just the beginning of our journey with Splunk and Google Cloud. We’re excited to see the innovation we can continue bringing to the gaming community worldwide.

If you’re looking to migrate and modernize your Microsoft and Windows workloads, Google Cloud is your premiere destination. No matter what migration strategy you’ve selected or what value you’re looking to achieve, with Google Cloud you’re able to:

• simplify your migration and modernization journey
• reduce your on-prem footprint and increase agility
• optimize license usage to reduce costs
• modernize to reduce single-vendor dependencies
• rely on enterprise-class support backed by Microsoft

Whether you’re looking to migrate applications running on Windows virtual machines, adopt Windows containers in Google Kubernetes Engine (GKE), convert SQL databases to Cloud SQL, or something else, Google Cloud offers you the first-class experience you need. 

But we don’t want you to take our word for it. Try it out yourself with our new online Microsoft and Windows on Google Cloud Demo Center without any commitment or friction.

The demo center uses hands-on guided simulations to walk you through several scenarios for solving business critical challenges with Google Cloud’s Microsoft and Windows solutions. Because these are all simulated, you’ll see how it works without any deployment, configuration, or commitment. It’s a seamless way for you to see exactly how Google Cloud can help you.

Run dedicated hardware and optimize with sole tenant

Sometimes you might want to run your workloads on dedicated hardware (with oversubscription options) for compliance, licensing, and management. Google Cloud provides sole-tenant nodes that allow you to easily deploy your virtual machines onto dedicated machines to avoid “noisy neighbor” issues, address regulatory or licensing constraints, and optimize inter-VM communications.

Plus, the CPU Overcommit option allows oversubscribing sole-tenant node resources by up to 2x, therefore helping save on per-physical core licensing for many licensed workloads like SQL Server.

Learn how to set up a sole tenant group and node.

Optimize license costs with premium images & custom VMs

One of the easiest ways to optimize your cloud experience with virtual machines (VM) is to pick the right VM image. Google Cloud provides premium license-included VM images that are thoroughly tested and optimized, including SQL Server options with pay-as-you-go licensing. These are great for workloads that don’t need to run all the time or when you do not have spare licenses for bring your own license (BYOL). 

Explore some Windows & SQL images and learn how CPU/Memory options can help optimize deployment and save on licensing.

Modernize your databases with Managed SQL Server

Sometimes you need to manage your SQL Server instance to achieve certain business or operational goals. But more often, managing SQL Server deployments can be undifferentiated: backups, high-availability, updates, and patching are just some of the many things you have to take care of when going the do-it-yourself route. One way to modernize your database tier is to migrate to a managed service like Cloud SQL, which is a fully managed Relational Database service for SQL. 

Explore the process of creating an instance in just a few clicks!

Extract apps from VMs and move to containers in GKE with Migrate for Anthos

Many Windows workloads running on virtual machines such as Internet Information Services (IIS) are ideal candidates for migrating to containers without major changes like rewriting or rearchitecting. However, doing this migration manually can be tedious, which is why Migrate for Anthos can help easily re-platform a .NET app running on IIS into a container-based app. 

Simulate intelligently extracting, migrating, and modernizing applications to run natively on containers in GKE and Anthos clusters.

Move .NET applications to GKE on Windows without code changes

When you’re looking to go fully cloud native, you can leverage Windows containers in GKE without rewriting your .NET applications. Simply create clusters with Windows nodes and deploy containerized Windows workloads in a few clicks, even alongside Linux containers. These deployments reduce operational overhead with features such as auto-upgrade, auto-repair, and release channels. 

Learn  how easy it is to build a GKE cluster with a Windows node and deploy an app. 

Now that you’ve gotten a feel for what’s available, go check out the Demo Center. You can also visit us at Windows and Microsoft on Google Cloud to learn more.

Digital tools such as cloud computing are fueling economic transformation across the US, including Ohio. Google continues to invest across cities and communities in Ohio, bringing over 200 jobs to the state, and helping provide $12.85 billion of economic activity for tens of thousands of Ohio businesses, nonprofits, publishers, creators and developers. To further accelerate the transformation of all Ohioan businesses and technologists, we’re thrilled to announce our newest Google Cloud region in Columbus, Ohio is open. The Columbus cloud region brings a second region to the Midwest, the 10th region to North America, and grows our global cloud region count to 33.

A region for the Buckeye State

Now open to Google Cloud customers, the Columbus region (us-east5) provides you with the speed and availability you need to innovate faster, build high-performing applications, and serve local customers — all on the cleanest cloud in the industry. Additionally, the region gives you added flexibility to distribute your workloads across the central, midwest, and eastern US.

The Columbus region offers immediate access to three zones, for high availability workloads, and our standard set of products, including Compute Engine, Google Kubernetes Engine, Cloud Storage, Persistent Disk, CloudSQL, and Cloud Identity. Our private backbone connects Columbus to our global network more quickly and securely. In addition, you can integrate your on-premises workloads with our new region using Cloud Interconnect. This means that Columbus-based customers can expand globally from their front door, and those based outside the region can more easily reach their users in the Midwest.

What customers are saying

Industries including retail, financial services, and IT are investing in Columbus. Organizations across these verticals have turned to the Google Cloud to innovate faster and help solve their most complex challenges

“As Wendy’s continues to innovate in new ways to create fast, frictionless, and fun interactions that redefine the way customers visit and enjoy our restaurants, our partnership with Google Cloud is a key enabler to delivering on our AI/ML and data analytics strategies. The proximity of the new Google Cloud region to Wendy’s headquarters provides the ability for us to move and scale quickly as business needs evolve. Additionally, Google Cloud’s investment in Columbus positions central Ohio as a true technology hub, which further boosts Wendy’s and other regional employers’ ability to recruit innovative talent,” said Kevin Vasconi, Chief Information Officer, Wendy’s.

“Huntington National Bank’s API Architecture is a central component to our growth and technology strategy. As our business segments grow from an offering and geographic perspective, we must evolve our technology to provide the optimal experience for our customers and our partners. Collaborating directly with Google Cloud on the build out of their cloud region in Central Ohio, provides the access our technology teams need to innovatively scale our infrastructure to meet the demands of our business with increased availability, lower latency, and greater resiliency,” said Geoff Preston, Chief Architect, Huntington National Bank.

“Google Cloud has been instrumental in our ability to scale and optimize data management and compute resources. We prioritize scale, elasticity and resilience in cloud services and Google Cloud delivers all three globally and locally. With Google Cloud security, we can efficiently process the quantities of application data required to accelerate alert detection and reduce response times for the critical infrastructure our customers depend on to enable the continuity of their vital applications.” said Sheryl Haislet, Chief Information Officer at Vertiv, a global provider of critical digital infrastructure and continuity systems headquartered in Columbus, Ohio, that leverages Google Cloud solutions to provide resilience for its operations and to better support customers.

“The addition of the new cloud region in Ohio continues to demonstrate Google Cloud’s commitment to the enterprise space and their presence in the region,” said Chris Delong, Chief Technology Officer, Designer Brands Inc. / DSW

What’s next

We are thrilled to welcome you to our new cloud region in Columbus, and eagerly await to see what you build with our platform. Register here for our Cloud Study Jam in June – an event for local developers to get hands-on training with Google Cloud. Stay tuned for more region announcements and launches this year, including our next U.S. region in Dallas, TX. And for more information, contact sales to get started with Google Cloud today.

When IDC recently asked CEOs what single word most reflects what their organization needs to thrive in 2022, the overwhelming response was “technology.” CEOs want to acquire greater digital know-how as they recognize that technology will underpin the business model of the future.

Digital transformation, already well underway, is becoming digital first. 

In fact, an astonishing 95% of CEOs see the need to adopt a digital-first strategy, according to IDC, and the majority of organizations are down the path of executing their plans. Currently, they report that about 30% of their organization’s revenue comes from digital products, services and experiences, a figure that will reach past 40% by 2027. 

But what will power this digital-first enterprise? Successful large-scale digital transformations are executed by a diverse set of partners and vendors—including a cloud partner, valuable channel partners and resellers, independent software vendors (commonly called ISVs), and services partners; multiple cloud partners are even becoming quite common.

These networks of experts are increasingly the driver behind enterprise transformation. They help companies and organizations to establish an actively managed and governed cloud ecosystem that integrates native and third-party solutions, which can create shared value for all partners from the latest digital technologies. In fact, 85% of CEOs told IDC that actively participating in digital ecosystems is important to their revenue growth.

The new digital agenda is built on cloud ecosystems

Recently, I sat down with the author of the IDC CEO survey, Philip Carter. He’s the group vice president, European chief analyst, and worldwide C-suite tech research lead at IDC, and I wanted to better understand from him how executives are approaching their digital-first mission. 

He explained that CEOs are turning to cloud platforms as a primary partner to put in place new, industry-specific digital business models. These platforms are at the center of “industry value networks” that accelerate time to value and benefit from cloud architecture’s ability to deliver scale, extensibility, and AI-driven experiences to create new revenue streams. 

At Google Cloud, we have made building such industry value networks a priority, comprising of: 

• Google Cloud, which provides the infrastructure and develops industry-specific data and analytics capabilities using artificial intelligence.
• Broader Google product areas like Google Shopping, Ads, Maps, Pay, Assistant, Android and Chrome.
• Independent software vendors (ISVs) relevant to a specific industry, who co-innovate with Google to provide end-to-end solutions to industry problems.
• System integrators (SIs) with deep industry knowledge who build the strategy and implement the business transformation for customers.

As an example, Google Cloud customers across multiple industries are looking for digital transformation to reinvent their core functions, such as supply chain. They might be identifying new distribution channels or restructuring their inventory. Google Cloud understands how to link the enterprise ecosystem with the consumer ecosystem. We can help enterprises access this broader ecosystem while leveraging AI-driven insights from data to help inform decisions in real time, at the point of engagement.

Google Cloud’s partner ecosystem can help achieve multiple items on the C-suite tech agenda such as improving customer experience, powering enterprise intelligence, building trust, supporting a distributed workplace, driving innovation, and streamlining operations. 

According to IDC, 75% of all organizations will be completely digitally transformed by 2030. Google Cloud has been working hard with our partners to create an extensive ecosystem that can help your organization achieve its digital transformation ahead of competitors. This includes co-developing and co-innovating industry-specific solutions with a host of partners in key areas such as operations, enterprise intelligence, customer experience, workplace productivity, innovation, security, and trust. 

And over the next few years, Google Cloud will double its investment in its partner ecosystem with increased co-innovation resources, more incentives, and co-marketing campaigns and funding. We’ll also offer greater integration into the Google Cloud Marketplace and a larger commitment to training and enablement. 

For more insights on the C-suite “Future of Enterprise” agenda, you can watch my full IDC interview. You might also download our ebook featuring IDC data on the future of enterprise with ecosystem examples from partners like AMD, Confluent, Fortinet, Genesys, Informatica, and Workspot.

Our goal is to provide comprehensive best-in-class support for our mutual customers’ digital transformations. As we look toward that goal, one thing is for sure: Our ecosystem of partners will continue to grow, adding solutions to meet the needs of digital-first enterprises. Care to join us on that journey?