The FinOps pyramid reflects different levels of cost optimisation capability.
In the foothills, it’s all about cost visibility and allocation. You need real-time, consolidated data on cloud costs – and to be able to handle showbacks and chargebacks.
Once you have the visibility and allocation, you’re equipped for the next stage: the ability to optimise cloud purchases based on accurate organisational requirements.
When allocation and buy optimisation are sorted, you have the information you need to accurately budget and forecast.
Finally, at the summit, there’s use optimisation. Usually this is what people think of as FinOps, but true FinOps actually requires the 3 previous levels, too. This final stage is where you have the essential foundation and can become a cost engineering champion – now and for the future.
