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FinOps & Cost Optimization

The Hidden $44.5 Billion Problem: Why 21% of Your Cloud Spend is Wasted

Amar BilasNovember 5, 20248 min read
Organizations waste 21% of cloud spending—$44.5 billion globally. Here is how to fix it.

## The Real Cost of Cloud Waste

**Over-Provisioned Resources**: Dev/test at production scale burns $180K+ annually.
**Zombie Resources**: Forgotten instances costing $23K monthly with zero value.
**No Cost Allocation**: Teams with no spending visibility have no optimization incentive.

## 90-Day FinOps Framework

### Month 1: Visibility (Target: 15-20% savings)
- Tag everything by team, project, environment
- Weekly cost reports to teams
- Find zombie resources and over-provisioning

### Month 2: Optimization (Target: 10-15% savings)
- Rightsize compute to actual utilization
- Reserved instances for 40-60% discounts
- Auto-scaling for variable workloads

### Month 3: Culture (Target: Sustained 30-40% reduction)
- Real-time FinOps dashboard
- Budget alerts before overruns
- Quarterly optimization reviews

## Real Results

**SaaS Company**: $420K to $260K monthly (38% savings), 12:1 ROI
**Financial Institution**: $1.8M annual savings
**Manufacturing**: $280K waste found in 2 weeks

Tags

FinOpsCloud CostIT Budget

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