Levering the immense power of cloud technology for your startup is a prerequisite for developing an efficient and scalable foundation for further growth. No good things come easy, which is why adequate management of your cloud resources comes with the territory. By “adequate” we mean strategic, tactical and well-planned.
Getting the most out of every cent with FinOps
Many startups begin their journey with low-cost resources, but rapid growth introduces new budget concerns and complexities. And as startups scale, managing cloud costs becomes more demanding and critical. This is why you need to place your cost optimization strategy from “nice to have” right to the “must have” box, alongside a tag “continuous”.
How do you plan cloud costs in a way that prevents a budget overrun in every phase of your startup expansion? By adopting FinOps best practices as soon as possible, as this framework is a strong business’ best friend – no matter the business size.
These practices include:
1. Adopt a FinOps culture early
Startups must build a culture of cost awareness. Establish cross-functional teams involving finance, engineering, and leadership to align cloud costs with business goals from the beginning.
2. Understand your usage patterns
Growth brings variability in cloud needs. Invest in usage tracking tools that offer real-time insights into consumption, identifying waste and opportunities for optimization. Know what resources you need today and how that might change tomorrow.
3. Leverage scalability features
Use cloud-native scalability features like auto-scaling to match demand and optimize resources. For example, when traffic spikes, auto-scaling can add instances dynamically, avoiding the need for over-provisioning and wasted resources during low-demand periods.
4. Maximize the use of discounted cloud resources
For predictable workloads, consider savings plans, reserved instances or volume discounts. Leverage spot instances for short-term, non-critical tasks to save significantly on cloud spend without compromising performance.
5. Set cost alerts and budgets
Implement cloud cost governance by setting alerts, thresholds, and budgets. Tools like AWS Budgets and Google Cloud’s Budget Alerts can notify you when spend is nearing a pre-defined limit, allowing for quick adjustments before costs spiral.
6. Consider a multi-cloud strategy
Diversifying your cloud providers can give your startup more flexibility. However, be mindful of potential added complexity, and only adopt a multi-cloud strategy when it aligns with your growth trajectory and budget.
7. Plan for the future
As your startup scales, your cloud costs will increase. Regularly review your architecture and make adjustments. Anticipate future needs like higher traffic, new features, or expansion into new markets and plan your cloud investments accordingly.
FinOps practices are there to help you identify what brings the greatest value from your cloud. So stay proactive, use the right tools, and align costs with growth – stick to these essential steps towards efficient scaling and long-term growth.
