The Ultimate Azure FinOps Guide: From Visibility to Optimization

This blog post looks at a recent podcast episode from the FinOps on Azure series. The host Michael Stephenson talked with Anderson Oliveira, who wrote a book on handling costs and value in Azure. If you are new to FinOps or working on cloud spending, the podcast has some helpful ideas. Here is a breakdown of what they covered.

Who is Anderson Oliveira and How He Got into FinOps

Anderson started as a chemical engineer but moved to IT projects early in his career. He worked on many tech areas, from software development to data projects and setting up data centers. Over 25 years, he became a project manager, with a focus on costs and teams. This experience helped him see FinOps as a way to mix finance, operations, and tech.

He got into FinOps while working on Azure projects. He saw patterns in how companies use the cloud and how it fits with their setup. That led to his book, “FinOps Ultimate Guide for Azure,” from Ava Orange. The book is for people leading FinOps teams or building centers of excellence.

What the Book Covers

The book is not just about cutting costs; it is about the full picture. Anderson talks about splitting your tech setup into clear groups, measuring costs, and tracking value. He covers basic steps like watching problems, reporting, and setting up ways to share info across teams. He also includes simple ways to find cost-saving opportunities, like using tools in Azure.

The main part of the book is on value. Anderson explains how to measure what your systems provide, not just how much they cost. He shares examples of “unit economics,” which are ways to link costs to results. For example, cost per customer or cost per gigabyte. This helps teams see if they are getting good returns.

Advice for People New to FinOps

If you are starting out, Anderson says to look at your company’s setup first. Find your business units and make sure people are responsible for costs. This can be hard because it means talking to different groups, like finance, engineering, and leadership. Costs can feel personal, so expect some pushbacks.

He notes that changing from old IT (where you buy big hardware upfront) to cloud (where you pay as you go) changes things. Choices now affect costs quickly, so teams need better ways to talk.

The Shift to Value Over Just Saving Money

Anderson sees a trend where many FinOps teams start looking for quick savings, but that does not last. He wants people to focus on value, getting more from what you spend. For example, instead of just lowering costs, ask how to make your apps give better results for the same money.

He gives examples like an HR system: Measure value by employees managed not just total company profit. This makes it easier to see if costs match benefits.

Trends and Tips for the Future

Anderson says FinOps is still growing. Many teams are stuck on basic savings, but he wants people to think bigger. He suggests planning apps with value in mind from the start, including ways to track metrics early.

For architects, his tips are: Set clear cost limits, assign responsibility, and add value tracking. This way, you can show progress by improving efficiency, not just cutting bills.

Wrapping It Up

This talk with Anderson is a good reminder that FinOps is about balance, costs and value together.