AWS
AI Transforms AWS Cost Estimation

AWS cost estimation just got easier with AI. Two AWS developers show how to create a smart helper that gives quick, accurate price estimates for AWS services.

The traditional AWS Pricing Calculator needs lots of detailed inputs, making it hard for regular developers to use. The solution? Combining AI with Infracost, an open-source tool.

Here's how it works:

• A Lambda function uses Infracost to read Terraform files

• The function creates detailed cost breakdowns

• AI processes these reports into simple summaries

• Developers can ask questions in plain language

• The system gives fast, accurate cost estimates

The setup involves:

• Creating a Lambda function with Infracost

• Putting everything in a container

• Setting up API connections

• Using Amazon Bedrock for AI processing

The best part? Developers can now ask simple questions about costs and get clear answers in seconds. No more guessing or spending hours with complicated calculators.

See the complete video

FinOps Weekly Webinars
Tagging & Naming Conventions

Tagging, one of the most controversial topics in FinOps.

Naming conventions or the things that nobody does.

Yet two of the most powerful things in Cloud.

Automate those, and governance is done.

Forget about them, and chaos will reign.

We bring Alfonso San Miguel, author of the book "Efficient Cloud FinOps" to explain us the core concepts of tagging and naming conventions.

We’ll provide you with a surprise at the end of the webinar.

Something that will only be available for the ones attending.

Nobody else will have it.

Literally nobody.

So earn the privilege and register today.

Get ahead of everyone in FinOps Governance.

See you all March 6th, 6:30 PM Madrid Time

FinOps
Beginner’s Guide to FinOps

Cloud computing has changed how businesses handle their computing needs. Instead of buying and maintaining their own servers, companies now rent what they need from cloud providers.

In cloud, Companies pay based on what they use, which can lead to surprise bills. Teams might forget to turn off test servers or use more resources than needed. About 28% of cloud budgets are wasted each year on unused resources. This is where FinOps comes in. It's a way to track and control cloud spending by asking:

• How much are we spending?

• Why are we spending it?

• What benefits are we getting?

Success stories show how well this works, like Airbnb cut storage costs by 27%, Lyft reduced cloud costs by 40% in six months or Etsy decreased computing costs by 42%.

FinOps needs different teams working together:

• Leaders who set goals

• Finance teams who watch the budget

• Engineers who use the cloud services

• FinOps experts who help everyone work together

The role of a FinOps expert is growing more important as more businesses move to the cloud. They help teams use resources wisely while keeping costs down.

Read more

Azure
Microsoft FinOps Updates February 2025

1. For Enterprise Agreement customers, Microsoft added new fields for cost allocation. This includes an AccountId column and populated the InvoiceSectionID column with DepartmentId. These changes make it easier to alloculate costs based on departments and accounts.

2. Microsoft also added sample prompts to the Copilot assistant. These prompts help users interact with Copilot more effectively, guiding them through tasks like breaking down costs and forecasting.

3. The company introduced an open billing data format called FOCUS. This format aims to create a common language for understanding cost and usage across different cloud services.

4. Announced several new ways to save money, including changes to reserved instance flexibility for certain VM series and reduced minimum volume sizes for Azure NetApp Files.

5. Lastly, they made updates to documentation, including new guides on transitioning between APIs and creating subscriptions across tenants.

Read the complete content

GreenOps
AI Powers Cost-Effective and Green/Fin Ops

Financial companies are spending more money on cloud services than ever before. Over 58% of their IT budgets now go to the cloud, with spending reaching $78.2 billion in Q2 2024.

But there's a problem: This growth in cloud use creates more pollution. Data centers could produce 2.5 billion tonnes of CO2 by 2030.

They're using AI to make cloud operations better and cleaner. For example:

• AI helps predict when servers will be busy, cutting waste by 35%

• Smart tools track carbon emissions in real-time

• Better server management reduces energy use by 20%

Real success stories show this works:

• Goldman Sachs cut costs by 18% and energy use by 22%

• Lincoln Financial Group saved 75% on IT costs

• HSBC reduced computing costs by 40%

The results are clear: Companies using AI for cloud management can save 20-40% on costs while reducing emissions by 25%.

Read more

Big Companies
Capital One leads with FinOps in Cloud

Capital One's move to cloud computing through Amazon Web Services (AWS) shows how banks are changing how they handle their computer systems.

A new report looks at FinOps - a way for banks to manage their cloud costs and resources better. FinOps teams need to understand both banking and technology. They help different departments work together - from engineers to finance teams. The benefits are clear:

• Better control of computing resources

• Lower costs

• Less energy use

• Improved ability to use AI for tasks like checking customer identity

Capital One's success shows how this approach works. They made their systems more efficient by improving how they use computer chips and software. While big banks are leading this change, smaller banks use cloud services differently. They might not need as many complex features since they offer fewer services.

The main point: FinOps helps banks use cloud computing more effectively, save money, and work better as a team. See the complete story

🎖️ Mention of Honour
Psychology & FinOps

The psychology of how we handle cloud costs in big companies shows an interesting pattern: we tend to focus too much on today's small problems while ignoring bigger future issues.

This comes from our old survival instincts, making us pay more attention to immediate concerns rather than long-term risks. In cloud computing, this can lead to costly mistakes. Here's what often goes wrong:

• Companies rush to use cloud services without proper cost planning

• Teams prioritize speed over financial efficiency

• Long-term expenses get overlooked during growth periods

Three key points to consider:

1. Balance speed, quality, and cost - you can't ignore any of these without consequences

2. Plan for success - higher demand means higher costs, so track your spending per unit

3. Think about future changes - fixing an expensive system later costs more than building it right from the start

The best approach is to ask questions that make people think about future results, rather than forcing rules on them. This helps teams understand why cost management matters from the beginning.

Smart planning today prevents expensive fixes tomorrow. Amazing reflection by Narcisonts expensive fixes tomorrow. Amazing reflection by Narciso

🏆 Quick Wins

Announcements

Cost Optimization Hub supports more EC2 Auto Scaling group recommendations - AWS → Read

Articles & Podcasts

Control your SaaS costs with unit economics → Read

Tech execs grapple with budget sinkholes as AI drives up spend → Read

📺️ VIDEO
Shadow Waste Uncovered Webinar: Recording

The Insider trying to save your money in AWS, interviewed by the team of FinOps Weekly about how to optimize AWS Service costs.

Professional Spotlight
Jez Back

The FinOps Consultant

Jez has been super welcoming with me since I started in the community. He along with his team in Capgemini do an amazing work (and read my newsletter a lot, which I love). A great one to connect to!

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