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.

Editor’s note: In honor of Mother’s Day, we look at how 1-800-FLOWERS.COM, Inc. migrated to Google Cloud as part of its digital transformation to quickly deploy seamless and convenient customer experiences across multiple brands on Mother’s Day and every day. 

As a leading provider of gifts designed to help customers express, connect, and celebrate,  1-800-FLOWERS.COM, Inc. has embraced cloud technologies to grow and transform its business through constant innovation. As part of our digital transformation, we recently completed the migration of our ecommerce platform and other services to Google Cloud. We’ve transitioned from a monolithic to a microservices platform, moved many workloads from our on-premises data centers to our Google Cloud environment, and scaled both horizontally and vertically. 

Since our migration, we’ve developed efficient processes to launch new brands, improved the customer experience across all brands, and seen significantly increased site traffic. 

Nurturing a more delightful customer journey

Customer delight is at the core of everything we do. Whether it be with a flower bouquet, a sweet treat, or a personalized keepsake, our mission is to deliver smiles. With the rise of the COVID-19 pandemic, we’ve all been challenged to find unique and safe ways to continue honoring the special connections in our lives and celebrating occasions with loved ones. Our customers have adapted by doing things such as sending gifts to isolated loved ones, sharing the same meal together virtually, or using video to engage with others through group activities like flower arranging and building charcuterie boards. 

The customer experience is a top priority for us, and we constantly look for innovative ways to enhance the customer journey across our ecommerce platform of more than a dozen brands. As a result, we’ve continued to see a rise in demand as customers enjoy the ease and convenience of our site and discover our full family of brands. 

Migrating to a cloud-first mindset

As we’ve continued to innovate and iterate on the customer experience, we knew we wanted to evolve our platform. We wanted to shift to a microservices platform, which would allow our team the opportunity to release updates to our site more often and set up the right continuous integration/continuous deployment (CI/CD) practices. 

Working with Google Cloud, we were able to move our ecommerce platform to the cloud and standardize our site and brand deployment by building one release that could then be repeated across all of our brands. We built everything in a modular fashion, including microservices and      code libraries, so that sites could be easily constructed and replicated for each brand. And because of this, we were able to launch Shari’s Berries extremely quickly after we acquired the brand in 2019.   

Moving our platform to a completely homegrown solution of microservices was a daunting task. But our team handled it beautifully through load-testing, stress-testing, and building new monitoring tools. And with Google Cloud supporting us all along the way, managing the migration process was simple and easy from start to finish. 

Arranging a better bouquet of services

Currently, we’ve migrated every customer-facing touchpoint for all of our brands to Google Cloud—whether it’s on the web or mobile, our AI bots, or our chat interfaces. 

• We run on Google Kubernetes Engine and Istio.
• We have nearly 200 microservices built to help power our entire ecommerce stack across several cloud services running on Google Cloud. 
• We’re utilizing BigQuery for our offline intelligence.

Results are coming up roses

Our new stack on Google Cloud has benefits for both us and our customers. We moved from a session-based to a token-based system, which provides enhanced security as well as a consistent, convenient experience across all our brands. Using service workers and a single-page app, we are able to download all the relevant site content to the browser in under two seconds to create an instant-click experience for each and every customer. We also use Google Analytics to measure our user interactions and provide personalized results to each customer. Our hope is that with this new system, we can learn from customer behavior to offer gift givers a more personalized shopping experience during each visit. 

The benefits of our new tech stack have not only helped us enhance the solutions we offer to customers today, they’ve also enabled us to offer new ones at lightning speed. With our legacy system, we used to release new code once a week or once a month. Now, even during our peak periods, we’re able to release 10 to 15 times a day and can deploy and pivot quickly to create new microservices and microsites on the fly—often without having to touch any code. 

Efficiencies abound     

The benefits of moving our platform to Google Cloud have extended to our internal teams as well. Before the migration, we had only two environments for developing and testing, which made it time-consuming to test updates before they went into production. Now with Google Cloud, we have several different journey teams—which are made up of developers, product owners, and technical owners—all working in several different environments, solving problems, and creating new solutions together. 

Everyone is now empowered to be self-sufficient, developing and releasing microservices on their own when they’re ready. This has given our developers more time to take part in continued development and learning opportunities. For example, we offer lunch-and-learn sessions as well as other resources for everyone to take advantage of so they can continue to learn and refine their skills.

Planting the seeds for future growth

As we look to the future and think about how we help our customers express, connect, and celebrate, we’ll continue to collaborate across teams to deliver solutions that spread smiles. Specifically, we’re exploring additional use of AI to help us better serve our customers across all our brands. 

We’ve enjoyed the ongoing support we’ve received from the Google Cloud team as they help us build new solutions and design a road map for the future. Their support has helped the 1-800-FLOWERS.COM, Inc. team to realize the power of the cloud and bring the very best experience to our customers.

Learn more about 1-800-FLOWERS.COM, Inc., or check out our recent blog about cloud migration for the real world.

To fuel the breakthroughs of the future, today’s researchers need easy access to the most innovative cloud technologies. That’s why we are delighted to announce the latest expansion of Google Cloud research credits beyond its previous scope of government and academic research institutions to researchers at nonprofit institutions. This initiative is part of our ongoing efforts to make the advantages of cloud research available to more people everywhere–and to drive more discoveries faster. 

To serve researchers outside of academia, we are now offering nonprofit institutions access to Google’s research credit program. Leading centers of scientific knowledge like the New York Genome Center, Scripps Research Institute, the Vector Institute in Toronto, the Ontario Institute for Cancer Research, and the Allen Institute for AI (AI2) have already benefited from the efficiencies of managing and analyzing their datasets on Google Cloud.

Michael Schmitz, Director of Engineering at AI2, reports that “Google Cloud has been essential for our research program. While we have an on-premise installation for custom hardware, the ability to use Google Cloud for isolated workstations (where researchers always have guaranteed access to a development environment) and bursting with increased need (such as our summer intern surge or a hyperparameter tuning just before our deadline) has been a critical part of conducting our research.”

Also, to better support Ph.D. students, we are updating the terms of Google Cloud credits for use toward advanced research. Now, Ph.D. students can apply for up to $1,000 grants that are renewable over the five years of their programs. We know that the researchers of the future need the best resources now.

Hassaan Maan, Ph.D. student at the University of Toronto/Vector Institute, says “when the pandemic started, I began working on a web-based platform to help researchers analyze genome sequences of the COVID-19 virus in real time and compare with data from labs around the world. Deploying the Covid Genotyping Tool (CGT) platform was challenging, as I had minimal experience hosting web applications and we required a scalable and fine-tuned deployment. Google Cloud’s comprehensive user interface and thorough documentation made for a seamless deployment, and I was able to get the platform up and running in less than two weeks. Google Cloud was a huge factor in the success of this project, and I hope to be able to use it further during my Ph.D. studies.”

To ramp up your own research project with Google Cloud, apply now for free credits in selected countries. To supplement your own learning on Google Cloud, sign up to earn four Google Cloud skills badges that you can share on your social platforms.