The formation of DevOps brought together two distinct worlds, causing a shift in IT culture that can only be made better (and more cost effective) by the integration of financial strategy – enter DevFinOps. We say this partially in jest… yeah, we know, you’ve had enough of the Dev-blank-blank mashups. But really, this is something that we’ve been preaching about since the start of ParkMyCloud. As long as the public cloud remains a utility, everyone should be responsible for controlling the cost of their cloud use, meaning “continuous cost control” should be integrated into the processes of continuous integration and delivery.
What is DevFinOps?
Hear us out — you at least need to start thinking of financial management as an element in the DevOps process. Time and time again, we see DevOps teams overspend and face major organizational challenges when inevitably the Finance team (or the CTO) starts enforcing a stricter budget. Cost control becomes a project, derailing forward development motion by rerouting valuable resources toward implementing spend management processes.
It doesn’t need to be this way.
As financial resources are finite, they should be an integrated element from the very beginning when possible, and otherwise as soon as possible. Our product manager, Andy Richman, recently discussed this concept further in a podcast for The CloudCast.
There are a number of ways that finance can be integrated into DevOps, but one near and dear to our hearts is with automated cloud cost control. A mental disconnect between cloud resources and their costs causes strain on budgets and top-down pressure to get spending under control.
Changing the Mindset: Cloud is a Utility
The reason for this disconnect is that as development and operations have moved to the cloud, the way we assess costs has changed profoundly in the same way that infrastructure has changed. A move to the cloud is a move to pay-as-you-go compute resources.
This is due to the change in pricing structure and mindset that happened with the shift from traditional infrastructure to public cloud. As one of our customers put it:
“It’s been a challenge educating our team on the cloud model. They’re learning that there’s a direct monetary impact for every hour that an idle instance is running. The world of physical servers was all CapEx driven, requiring big up-front costs, and ending in systems running full time. Now the model is OpEx, and getting our people to see the benefits of the new cost-per-hour model has been challenging but rewarding.”
In a world where IT costs already tend to exceed budgets, there’s an added struggle to calculating long-term cost estimates for applications that are developed, built and run on a utility. But wasn’t the public cloud supposed to be more cost effective? Yes, but only if every team and individual is aware of their usage, accountable for it, and empowered with tools that will give them insight and control over what they use. The public cloud needs to be thought of like any other utility.
Take your monthly electric bill, for example. If everyone in the office left the lights on 24 hours a day and 7 days a week, those costs would add up rather quickly. Meanwhile, you’d be wasting money on all those nights and weekends that your beautifully lit office is completely empty. But that doesn’t happen because in most cases, people understand that lights cost money, so people have automated this process in the office by using sensors either based on motion (usage) or time-based schedules. Now apply that same thinking to the cloud and it’s easy to see why cost-effectiveness goes down the drain when individuals and teams aren’t aware or accountable for the resources they’re using.
Financial decisions regarding IT infrastructure fall into the category of IT asset management (ITAM), an area that merges the financial, contractual and inventory components of an IT project to support lifecycle management and strategic decision-making. That brings us back to DevFinOps: an expansion of ITAM, fixing financial cost and value of IT assets directly into IT infrastructure, updating calculations in real time and simplifying the budgeting process.
Why this is important now that you’re on cloud
DevFinOps proposes a more effective way to estimate costs is by breaking them down into smaller estimates over time as parts of the work get completed, integrating financial planning directly into IT and cloud development operations. To do this, the DevOps team needs visibility into how and when resources are being used and an understanding on opportunities for saving.
Like we’ve been saying: the public cloud is a utility – you pay for what you use. And with that in mind, the easiest way to waste money is by leaving your instances or VMs running 24 hours a day and 7 days a week, and the easiest way to save money is just as simple: turn them off when they’re idle. In a future post, we’ll discuss further on how you can implement this process for your organization using automated cost control – stay tuned.
Dear Daniel Ek,
Congrats on Spotify’s IPO! It’s certainly an exciting time for you and the whole company. We’re a startup ourselves, and it’s inspiring to see you shaking up the norms and succeeding on your first day on the stock exchange.
Of course, with big growth comes big operational changes. Makes sense. As cloud enthusiasts ourselves, we were particularly interested to see that you committed to 365 million euros/$447 million in Google Cloud spend over the next three years.
Congrats on choosing an innovative cloud provider that will surely serve your infrastructure needs well.
But we’d like to issue a word of warning. No, not about competing with Google – about something that hits the bottom line more directly, which I’m sure will concern you.
Maybe a playlist on our favorite music streaming service is the best way to say this:
What do we mean when we say not to waste money on Google Cloud resources you don’t need?
In fact, we estimate that up to $90 million of that spend could be on compute hours that no one is actually using – meaning it’s complete wasted.
How did we get there? On average, ⅔ of cloud spend is spent on compute. Of that, 44% is on non-production resources such as those used for development, testing, staging, and QA. Typically, those resources are only needed for about 35% of hours during the week (a 40- hour work week plus a margin of error), meaning the other 65% of hours in the week are not needed. More here.
That’s not to mention potential waste on oversized resources, orphaned volumes, PaaS services, and more.
Companies like McDonald’s, Unilever, and Sysco have chosen ParkMyCloud to reduce that waste by automatically detecting usage and then turning those resources off when they’re not needed – all while providing simple, governed access to their end users.
Daniel, we know you won’t want your team to waste money on your Google Cloud spend.
We’re here when you’re ready.
Today we’re excited to announce the latest cloud provider compatible with ParkMyCloud’s SmartParkingTM – Google Cloud Platform! In addition to AWS and Azure, Google users will now benefit from the use of SmartParking to get automatic, custom on/off schedules for cloud resources based actual usage metrics.
The method is simple: ParkMyCloud will import GCP metric data to look for usage patterns for your GCP virtual machine instances. With your utilization data, ParkMyCloud creates recommended schedules for each instance to turn off when they are typically idle, eliminating potential cloud waste and saving you money on your Google Cloud bill every month. You will no longer have to go through the process of creating your own schedule or manually shutting your VMs off – unless you want to. SmartParking automates the scheduling for you, minimizing idle time and cutting costs in the process.
Customized Scheduling – Not “One-Size-Fits-All”
SmartParking’s benefits are not “one-size-fits-all.” The recommended schedules can be customized like an investment portfolio – choose between “conservative”, “balanced”, or “aggressive” based on your preferences.
And like an investment, a bigger risk comes with a bigger reward. When receiving recommendations based on your GCP metric data, you’ll have the power to decide which of the custom schedules is best for you. If you’re going for maximum savings, aggressive SmartParking is your best bet since you’ll be parked most of the time, but with a small “risk” of occasionally finding an instance parked when needed. But in the event that this does happen – no fear! You can still use ParkMyCloud’s “snooze button” to override the schedule and get the instance turned back on — and you can give your team governed access to do the same.
If you’d rather completely avoid having your instances shut off when needed, you can opt for a conservative schedule. Conservative SmartParking only recommends a parking schedule during times that instances are never used, ensuring that you won’t miss a beat when it comes to having instances off during any given time that you’ve ever used them.
If you’re worried about the risk of aggressive parking for maximum savings, but want more opportunities to save than conservative schedules will give you, then a “balanced” SmartParking schedule is a happy medium.
What People are Saying: Save More, Easier than Ever
Since ParkMyCloud debuted SmartParking in January for AWS, adding Azure in March, customers have given positive feedback to the new functionality:
“ParkMyCloud has helped my team save so much on our AWS bill already, and SmartParking will make it even easier,” said Tosin Ojediran, DevOps Engineer at a FinTech company. “The automatic schedules will save us time and make sure our instances are never running when they don’t need to be.”
ParkMyCloud customer Sysco Foods has more than 500 users across 50 teams using ParkMyCloud to manage their AWS environments. “When I’m asked by a team how they should use the tool, they’re exceedingly happy that they can go in and see when systems are idle,” Kurt Brochu, Sysco Foods’ Senior Manager of the Cloud Enablement Team, said of SmartParking. “To me, the magic is that the platform empowers the end user to make decisions for the betterment of the business.”
Already a ParkMyCloud user? Log in to your account to try out the new SmartParking. Note that you will need to update the permissions that ParkMyCloud has to access your GCP metric data — see the user guide for instructions on that.
Not yet a ParkMyCloud user? Start a free trial here.
Cloud Cost Optimization Engine Automates Savings for “Big Three” Cloud Providers
Example of an automatically-generated SmartParking recommendation based on instance usage patterns.
April 3, 2018 (Dulles, VA) – ParkMyCloud, the leading enterprise platform for continuous cost control in public cloud, announced today that it has released SmartParkingTM for Google Cloud Platform (GCP), allowing GCP users to automate cloud cost optimization.
The ParkMyCloud platform helps customers of the “big three” cloud providers, Amazon Web Services (AWS), Microsoft Azure, and GCP, save money on cloud resources by automatically integrating cost control into their DevOps processes. ParkMyCloud does this by scheduling cloud resources to turn off when they are not needed – which they call “parking”.
This expansion of the SmartParking functionality to Google Cloud Platform comes on the heels of the release of SmartParking for Microsoft Azure in March. It uses Google Cloud Platform metric data to find patterns in instance utilization. ParkMyCloud then uses that data to automatically recommend specific parking schedules for each instance, designed to turn them off when they are typically idle. This maximizes savings on cloud resources by shutting the instances down when they are not being used. Using ParkMyCloud’s automated cost-saving technology, individual AWS and Azure customers have saved over $1 million on their cloud bills. Now, Google Cloud users, too, can eliminate wasted spend.
“We are consistently saving $15,000-25,000 a month using ParkMyCloud,” said Bill Gullicksen, Director of IT, QCentive. “It’s the perfect tool for what we needed, and in addition to the automation it also lets us provide access to developers, QA testers, and even data analysts and business folks to turn instances on and off without having to write a bunch of complex policies ”
“We’ve gotten great feedback on SmartParking from our AWS and Azure customers,” said ParkMyCloud CTO Bill Supernor. “Our Google customers have been looking forward to the same optimization opportunities, and we’re happy to deliver.”
Now that SmartParking has been achieved for all three major cloud providers, ParkMyCloud plans to develop cost-savings measures for other services within each cloud provider, and to expand to additional cloud providers.
ParkMyCloud is a SaaS platform that automatically identifies and eliminates public cloud resource waste, reducing spending by 65% or more — think “Nest for the cloud.” AWS, Azure and Google users such as McDonald’s, Sysco Foods, Unilever, Avid, and Sage Software have used ParkMyCloud to cut their cloud spending by millions of dollars. ParkMyCloud helps companies like these optimize and govern cloud usage by integrating cost control into their DevOps processes. For more information, visit https://www.parkmycloud.com.