Planning & Estimating Capability
Planning and Estimating in FinOps aids your organization in cloud cost predictions and investment strategies.
The planning and estimating capability of FinOps involves exploring and estimating the potential costs and values of cloud workloads, aiding organizations in decision-making for cloud investments, implementation, or modernization, using a variety of estimation techniques and tools.
Planning & Estimating Definition
In the complex world of cloud computing, accurately predicting costs is crucial. Companies must consider various factors, from minor service tweaks to moving entire systems to the cloud. By comparing different scenarios, they can make better budgeting decisions. This process requires a solid set of practices to navigate the myriad of services and updates in the cloud, ensuring companies can plan effectively and avoid financial surprises.
Estimation is a team effort, primarily involving engineers and FinOps teams, with additional insights from product, finance, and leadership when needed. This collaboration helps in creating detailed cost forecasts, guiding decisions on cloud migration and use. These estimates aren’t just about numbers; they help shape strategies for implementing and optimizing cloud services, ensuring investments are sound and aligned with the company’s goals.
Different strategies, like using cost calculators or analyzing past expenses, help businesses gauge cloud costs. It’s essential for engineering and FinOps to work closely, ensuring their estimates are accurate and relevant. This careful planning and collaboration help companies manage their cloud expenses wisely, aligning their cloud strategies with their financial and operational objectives.
