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Cloud Computing · Foundational

FinOps

Operational framework and cultural practice that maximizes the business value of cloud through collaboration between engineering, finance and business teams.

Definition

FinOps, as defined by the FinOps Foundation, creates financial accountability for variable cloud spend and enables timely, data-driven decisions. Its framework includes principles, personas, domains and capabilities, and an iterative lifecycle of three phases: Inform (visibility and allocation), Optimize (rates and usage) and Operate (continuous governance and improvement).

Example

Engineering teams review weekly cost dashboards per service and commit to rightsizing targets agreed with finance.

Exam tip

FinOps is not just cost cutting; it is about maximizing value. Remember the phases Inform, Optimize, Operate.

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