1.

Apropriação & Responsabilidade

Identifique um responsável nomeado (indivíduo ou equipe) por
conduzir as atividades de gerenciamento financeiro da nuvem

2. Parceria
Crie uma parceria de Finanças / Tecnologia e estabeleça uma
cadência de comunicação regular para criar e manter o alinhamento
3. Capacitação na Alocação de Custos
Implementee uma estrutura de contsa (usando AWS Organizations)
e estratégia de Tags e/ou Categoria de Custos para permitir a
alocação de custos para linhas de negócios
A jornada de Cloud 4. Visibilidade de Custos
Estabeleça KPIs de eficiência e monitore os custos da nuvem
Financial Management (usando o AWS Cost Explorer, Dashboards Cost Intelligence) para as
equipes de TI aumentarem a conscientização sobre os custos

5. Otimização de Custos
Aproveite as ferramentas (AWS Cost Explorer, AWS Compute
Optimizer, Trusted Advisor) para identificar e executar
oportunidades de otimização de custos

6. Previsão & Forecast

Melhore a previsilbilidade dos gastos (AWS Budgets)
Educação
Identifique as ofertas de treinamento com foco na AWS Training
and Certification para eliminar pontos cegos de conhecimento
para todas as partes interessadas
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 Revisiting how the finance
organization operates

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 Refresher: Traditional technology consumption

TECHNOLOGY
TEAMS Request PROCUREMENT Model
› Siloed procurement
› Upfront estimates of cost and
Rack Approve capacity
and stack and track
› Long procurement cycles

› High cost of failure

OPERATIONS SUPPLY CHAIN

› Unfavorable experimentation
Procure conditions

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 Refresher: Cloud technology consumption

Model
Deploy Operate
› Democratized access
to resources

TECHNOLOGY & FINANCE &

› Variable usage matches
PRODUCT TEAMS BUSINESS TEAMS demand
› Instant procurement

› Low cost of failure

› Experiment and create value
Optimize

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 Finance organization: cloud-related responsibilities
Role Responsibility 1 Responsibility 2 Responsibility 3 …

Approve large (upfront)

Chief Finance Officer Negotiate AWS contracts Establish AWS partnerships …
commitment-based purchases

Define and/or apply

Chief Accounting Officer accounting policies relating Ensure AWS invoices Perform cloud performance
/Financial Controller to AWS spend (i.e., are paid on time indicator analysis
capitalization, chargebacks)

Financial Planning Forecast and budget Analyze and mitigate AWS Define and monitor cloud
…
& Analysis AWS spend spend variances performance indicators

Set up AWS in Create cloud

Procurement Managers Negotiate AWS contracts …
procurement system purchase orders

Identify opportunities to
Financial Analysts Analyze cost and usage reduce spend through Define tagging dictionary …
commitment-based purchases

Record AWS invoices against

Accounts Payable Reconcile AWS invoices Pay AWS invoices …
purchase orders

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 Technology organization: cloud-related responsibilities

Participate
Design Identify and Build
Implement Identify and in cost
cost-aware Use EC2 mitigate automation,
AWS Tag cloud eliminate estimation
products Spot sources of governance,
account resources resource and
and Instances cloud cost tools, and
structure waste forecasting
solutions variances guardrails
exercises

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 Example: Finance and Engineering partnership
REAGroup: Driving cost governance and good cost behavior
through Finance working with Engineering

https://bit.ly/3dX9Xd1

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 Organizational models
for CFM

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 Organizational models

Hybrid

Centralized

Decentralized

Maturity
- +
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 Decentralized models

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 Decentralized CFM

Overview Example

› Occurs in organizations of › Individual team purchasing Savings

varying sizes
› Uneven application of CFM best
practices across teams
› Duplicative effort,
suboptimal results
› Requires unwinding of accrued
technical debt
Plans, which are applied to other
team’s resources
› Inconsistent tag values
› Punitive measures applied to
cost-aware teams

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 Centralized models

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 AWS Partner (Consulting, ISV, etc.)

Statement of work, ROI-driven

Requires oversight and management

(i.e., tracking actual vs. plan)

Access to cloud environments and product

Centralized model: owners/teams
AWS Partner Partner onboarding requirements (product,
internal operating models, access controls)

Accelerates CFM outcomes

© 2021, Amazon Web Services, Inc. or its Affiliates.

 New hire, or re-tasked from
technology organization

Single point of contact for finance,

business, and product teams

Responsible for centralized

implementation of CFM
Centralized model:
CFM Lead/Individual Manages interns or short-term
contracts with AWS partners

Suitable for small organizations

or single line of business

© 2021, Amazon Web Services, Inc. or its Affiliates.

 Centralized model: CFM Lead/Individual
Roles & responsibilities Characteristics & traits

Student &
teacher Curious
Data Software
scientist engineer Owner
Collaborator

Financial Infrastructure
analyst Influencer
engineer Efficient

Economist Operations
engineer Communicator Data-driven

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15
 Minimal changes to existing organizational
structure, dotted line org structure changes

Program managed portfolio of CFM projects

Centralized model:
Part-time CFM team Re-task fixed percentage of existing resources

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 Example: Part-time CFM team

R&D Finance
CFM Lead CFM Lead

Technical Financial
Data Science Product FP&A
Operations Analyst

Site reliability Product 1

team

Product 2

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 Newly launched, dedicated, standalone team

Point-in-time (Tiger Team) or permanent

Option 1: Form a new team using existing

Centralized model: employees from different organizations

Full-time CFM team Option 2: Convert an existing, high performing

team (i.e., A-team)

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 Example: Full-time CFM team

CFM Team
Data
Science

Commitment-
Cost and usage Usage Cost
Site based discount Automation
Reliability data visibility optimization estimation
analysis

Architecture Savings New

FP&A Reporting Tools
review board Plans & RIs workloads

Financial
Rightsizing & Existing
Analyst Monitoring Governance
Modernization workloads

Automation
Audit-based
optimizations

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 Hybrid models

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 Cloud Business Office (CBO)

Cloud Enablement Engine

› Part of the Cloud Enablement Engine team

› Aligns Cloud Platform Engineering deliverables

to the needs of the customers (i.e., business, and Cloud Cloud
operations) and other key stakeholders Platform Business
(i.e., finance, security) Engineering Office

› Ensure alignment of cloud goals to the business’s

goals and the strategic and tactical execution of
them across elements of people, process, and
technology in a well-governed and inclusive way

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 Cloud Business Office

“ The Cloud Business Office ensures the effective governance for the organization
to adopt and accelerate public cloud use across the business.
It does this through the holistic representation of key stakeholders from across the
business who form a quorum, who commit to be broadly educated on key cloud
differentiators across security, reliability, availability, cost, and time to market.
It will establish and agree bold objectives and principles to the same, and act positively
to encourage the enablement of the workforce to adopt cloud at scale and address
and remediate any risks or blockers that arise in its course.

© 2021, Amazon Web Services, Inc. or its Affiliates.

” —AWS Enterprise Strategy Team
 What products does the CBO provide?

1 2 3 4
Architecture Product Delivery Financial
alignment management management management

Cloud Business Office capabilities

Governance
Reference architecture Demand Agile execution Cost
alignment management support optimization

Technical work Functional work Status Reporting &

decomposition decomposition reporting forecasting

Engineering Prioritization Invoice

support and roadmap management

5 6 7
Customer Training Org change
onboarding management

Adoption Curriculum Strategy &

People

support strategy execution

Cloud Sourcing & Organizational

knowledge hub management alignment

Provisioning Integration Communications

© 2021, Amazon Web Services, Inc. or its Affiliates.

 What products does the CBO provide?

1 2 3 4
Architecture Product Delivery Financial
alignment management management management

Cloud Business Office capabilities

Governance
Reference architecture Demand Agile execution Cost
alignment management support optimization

Technical work Functional work Status Reporting &

decomposition decomposition reporting forecasting

Engineering Prioritization Invoice

support and roadmap management

5 6 7
Customer Training Org change
onboarding management

Adoption Curriculum Strategy &

People

support strategy execution

Cloud Sourcing & Organizational

knowledge hub management alignment

Provisioning Integration Communications

© 2021, Amazon Web Services, Inc. or its Affiliates.

 Example: hybrid model

Central responsibilities Edge responsibilities

Central CFM Product Team

Function

Cost aware
Cost data Commitment- Forecast intake Cost reports Commitment- Cost
Automation product
service based discounts and review and monitoring based discounts estimation
development

Review and Submit Submit future

validate global Tools workload cloud usage
purchases requirements plans

Governance

© 2021, Amazon Web Services, Inc. or its Affiliates.

 CBO example: The Vanguard Group

The Vanguard Group formalized

its Cloud Financial Management
ownership through a Cloud
Business Office

Learn more: “Optimizing

Costs as You Scale on AWS”,
AWS re:Invent 2018:
https://bit.ly/2L8PKn2

© 2021, Amazon Web Services, Inc. or its Affiliates.

 CBO example: The Vanguard Group Actual EC2 hours

Amazon EC2 usage growth and migration count Forecasted EC2 hours
Migration count

400

2.5
CBO

Migration count
300
Million EC2 hours

2.0

1.5 200

1.0
100
0.5

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 Determining which
model to use

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 Considerations (non-exhaustive)

Organization Size of Level of cloud Time

size and age AWS spend maturity constraints

High Low
Startup $1M+/year Short-term
maturity maturity

Decentralized Partner / Part- Cloud Business Decentralized /

Partner
approach time CFM Lead Office CFM Lead

© 2021, Amazon Web Services, Inc. or its Affiliates.

 Establish a finance, and
technology partnership

Secure executive sponsorship and

integrate with goal-setting

How to establish Implement CFM as a program, measure ROI

a cost-aware Gamify (and innovate)
organizational culture
Continuous cloud education

Celebrate wins, but learn also from mistakes

© 2021, Amazon Web Services, Inc. or its Affiliates.

 Finance and technology partnership

Daily/weekly
› Variance analysis
Deploy Operate › Budget reviews
› Capital asks (upfront
commitment-based purchases)

TECHNOLOGY &
PRODUCT TEAMS
FINANCE &
BUSINESS TEAMS
Monthly
› Monthly close, cloud spend review
› New cloud workload reviews

As-needed
› Forecast preparation

Optimize

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 Executive sponsorship and goal-setting

Executive sponsor Goal-setting

› CFM program champion › CFM KPIs in organizational and/or

individual goal-setting
› Funding advocate
› Escalation path Example
Team A targets X% spend
Example reduction for App B
Actional list of optimizations
are not being implemented

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 Implement CFM as a program Example Program Overview

Generate a CFM project plan

Create a backlog
Prioritize backlog and schedule the work
› Resource availability
› Low hanging fruit
› Large ROI

© 2021, Amazon Web Services, Inc. or its Affiliates.

 Summary

› Finance organizations need to evolve their capabilities to be successful on

AWS
› Decentralized models for CFM provide agility for smaller organizations
but have inefficiencies associated with them
› Centralized models for CFM including AWS partners, single individual or
part-time and full-time CFM teams drive standardization, and widespread
best practice adoption
› Hybrid models such as Cloud Business Offices provide the best of both
decentralized and centralized models
› Celebrate CFM wins by recognizing and rewarding the individual/team
involved in delivering positive business outcomes

© 2021, Amazon Web Services, Inc. or its Affiliates.

 References

Building a Cloud Operating Model https://bit.ly/2FXb8g2

Cloud Enablement Engine (Whitepaper) https://bit.ly/3nKiiWh

Creating the Cloud Business Office (Blog Post) https://amzn.to/3iUQ5bC

AWS Learning Needs Analysis https://amzn.to/35BA8T1

CFM for Builders (AWS Course) https://amzn.to/2XRbOtp

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 Q&A

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 Thank you

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