Cloud Cost Optimization & Analysis Flashcards

What is the primary goal of cloud cost optimization in FinOps?

Answer: To maximize business value while controlling costs

FinOps focuses on aligning cloud spending with business value while maintaining performance.

Which of the following is a key benefit of implementing Reserved Instances (RIs) in AWS?

Answer: Cost savings for steady-state workloads

RIs provide significant cost savings compared to On-Demand pricing for predictable workloads.

What is the purpose of a cloud cost allocation model?

Answer: To provide visibility and accountability for cloud usage

Cost allocation helps organizations track and assign cloud expenses to appropriate business units.

Which metric is most important for evaluating the efficiency of cloud spending?

Answer: Cost per unit of business value

Cost per unit of business value measures the return on cloud investments.

What is the primary purpose of implementing auto-scaling in cloud cost optimization?

Answer: To align resource capacity with actual demand

Auto-scaling matches resources to actual demand, reducing waste during low usage periods.

Which FinOps practice involves comparing cloud costs against business metrics?

Answer: Unit economics analysis

Unit economics analysis helps understand the cost to deliver specific business capabilities.

What is the benefit of implementing storage lifecycle policies in cloud cost optimization?

Answer: To automatically transition data to cost-optimal storage tiers

Lifecycle policies automatically move data to cheaper storage tiers when appropriate.

Which technique helps identify underutilized cloud resources?

Answer: Analyzing resource utilization metrics

Utilization metrics reveal resources that are provisioned but not actively used.

What is the purpose of implementing budget alerts in cloud cost management?

Answer: To notify teams when spending approaches thresholds

Budget alerts provide early warnings when spending approaches defined thresholds.