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CLOUD-DIGITAL-LEADER · Question #72

A large organization is struggling to manage their cloud costs effectively. They want to increase vis-ibility into cloud costs. Which cost management approach should the organization use?

The correct answer is A. Establish a partnership between finance, technology, and business teams. Establishing a cross-functional partnership between finance, technology, and business teams is the foundational principle of FinOps (Cloud Financial Operations), the industry-standard approach to cloud cost management. Finance understands budgets and chargebacks, technology…

Cloud Financial Management

Question

A large organization is struggling to manage their cloud costs effectively. They want to increase vis-ibility into cloud costs. Which cost management approach should the organization use?

Options

  • AEstablish a partnership between finance, technology, and business teams.
  • BAppoint a single person to monitor cloud spending across the organization.
  • CReview any cloud spending that exceeds the organization's error budget.
  • DIncrease monitoring of on-premises infrastructure and services.

How the community answered

(37 responses)
  • A
    78% (29)
  • B
    8% (3)
  • C
    11% (4)
  • D
    3% (1)

Explanation

Establishing a cross-functional partnership between finance, technology, and business teams is the foundational principle of FinOps (Cloud Financial Operations), the industry-standard approach to cloud cost management. Finance understands budgets and chargebacks, technology teams understand what services are used and why, and business teams provide context on ROI and priorities. Together, they create shared accountability and visibility into cloud spending. Option B (single monitor) doesn't scale for large organizations and creates a bottleneck. Option C conflates error budgets-an SRE reliability concept-with cost management. Option D focuses on on-premises infrastructure, which is irrelevant to managing cloud costs.

Topics

#Cloud Cost Management#FinOps#Organizational Alignment#Cross-functional Collaboration

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