Implementing FinOps is one thing, but implementing KPI goals can ensure your whole company is on the same page regarding financial goals and performance. Each KPI should not be a general goal; it should be specified to one team or individual, ensuring that it is on track to be accomplished, and if not, the FinOps team can move forward in creating a plan to get back on the right path. Implementing KPIs can help improve your margins, so here are three to keep in mind when strategizing your goals.

1. Try to Tag at Least 90% of Your Taggable Resources

Tagging resources is an essential step. It allows you to keep track of their location, uses, spending, security, and any other data you specify within each tag. By implementing a system for them to be categorized into certain environments, servers, spending allowances, and so on, you can have a clearer picture of where your time and money are being spent. You should aim to tag as many resources as possible to track them better.

This is where a good Tag Manager comes in handy. A Tag Manager that can provide data across multiple cloud providers and give you the ability to create, edit, and delete tags is the best way to ensure you are tagging as many as possible and tracking them appropriately. We provide our Tag Manager just for that occasion to ensure you save money, stay organized, and take the proper steps in your cloud journey.

2. Keep Spending Optimized During the Weekends Rather Than Weekdays

This might be reversed for some companies, but before deciding when to optimize, you must figure out when your business has the most activity. For some, this might be the weekdays, and for others, it might be the weekends. You must decipher the patterns within your business to ensure you are not spending a flat rate for all your days and wasting more money than it is worth. You’ll want to look at whether or not you are busiest on the weekends, holidays, or otherwise. When you have this information, you can slash costs and usage on the days and periods you expect there to be lower activity.

3. Try to Keep Orphaned Resources Below 5% of Your Total Used and Idle Resources at Zero

It is not unbelievable for businesses to have servers or resources they are not using, but if you do not keep track, these machines could be racking you up a lot of money that could be spent elsewhere. Having your engineers check back on servers and resources is crucial to ensure they are being used appropriately and deleting anything that is simply draining your budget. When done correctly, your orphaned machines and resources should be below 5% of your total used resources to ensure you are not overspending.

Additionally, idle resources could be taking up space that could be used for something more efficient. It is important to go through resources to find those that are not necessary anymore or implement schedules for certain resources to ensure you are giving attention and budget to the resources that need it.

These are only a few of the KPIs you should be prioritizing to improve your margins. If you have questions or want to implement FinOps into your business and save money on your public cloud, contact the team at FinOps Oversight.