basics

Question 1

Anomaly management

Answer 1

Ability to detect, alert, and manage unexpected cloud cost events in a timely manner.

Question 2

cloud cost anomalies

Answer 2

Unpredicted variations resulting in increases in cloud spending that are larger than would be expected given historical spending patterns.

Question 3

cost-driven anomalies

Answer 3

Process of identifying spending deviations from the expected norms.

Question 4

chargeback

Answer 4

Allocation strategy of actual consumption spend of IT services from finance systems back to user teams via an internal invoice. Holds business units directly accountable for IT spend.

Question 5

showback

Answer 5

Actual consumption of IT services is shown to business units, while the spend is being charged to a different business unit.

Question 6

amortized costs

Answer 6

distributes the up-front fees across each hour of billing.

Question 7

budgeting

Answer 7

Estimation of revenues and expenses companies plan to spend within a time period.

Question 8

budget vs actual

Answer 8

Reporting on BvA forecast to establish trends.

Question 9

capital expense

Answer 9

an asset of the company that benefits future periods.

Question 10

operational expense

Answer 10

only benefits the current period.

Question 11

cost allocation

Answer 11

splitting up a cloud bill and associating costs to each cost center.

Question 12

cost estimation

Answer 12

Process of quantifying every resource that will be required to complete a project also used to help create budgets.

Question 13

forecasting

Answer 13

Predicting future spending. History + plans.

Question 14

fully-loaded costs

Answer 14

actual discounted rates a company is paying for cloud. Factors in shared costs and mapped to business org structure.

Question 15

metrics

Answer 15

A formula for measuring something with the purpose of obtaining results.

Question 16

shared costs

Answer 16

Charges which are utilized or attributed to multiple owners, applications, or products.

Question 17

unblended rates

Answer 17

Reporting comparable costs without consideration to discounts.

Question 18

workload

Answer 18

amount of work performed or capable of being performed within a specific period. measured in compute / memory / storage.

Question 19

cloud center of excellence

Answer 19

A cloud center of excellence is a team that leads cloud strategy, governance, and best practices in an organization.

Question 20

FinOps

Answer 20

Operational framework and cultural practice which maximizes the business value of cloud, enables timely data-driven decision making, and creates financial accountability through collaboration between engineering, finance, and business teams.

Question 21

Objectives and Key Results (OKR)

Answer 21

Goal system to create alignment and engagement in a business around measurable goals.

Question 22

Amoritization

Answer 22

Retiring a payment of capital gradually over time on a schedule which reflects the benefits the capitcal provides in each period.

Question 23

resource-based commitment

Answer 23

Must be purchased in a single region or zone.

Question 24

break even definition

Answer 24

Estimated length of time to pay off the entire cost of commitment based discount (including upfront and ongoing charges) from the savings provided by that commitment.

Question 25

capacity reservation

Answer 25

secure compute capacity for your CSP instances in a particular region or zone.

Question 26

commitment length

Answer 26

the duration for which a customer commits to using a CB Discount for cloud services.

Question 27

commitment utilization

Answer 27

the percentage of active commitments utilized during the specified period.

Question 28

coverage

Answer 28

The percentage of eligible workloads that were covered by active commitments during the specified period.

Question 29

payment option

Answer 29

Commitment Based discounts can be paid in various predefined increments.

Question 30

queueing purchase

Answer 30

Plan the purchase of a commitment based discount ahead of time.

Question 31

tenancy

Answer 31

Describes if the hardware owned by the CSP that your cloud instances are running on is only able to be used by a single organization (dedicated) or if it could be used by multiple organizations (shared).

Question 32

corporate finance

Answer 32

company financial decisions to maximize shareholder value.

Question 33

operational efficiency

Answer 33

The difference between the input (costs/employees/time) required to keep the org running and the output (revenue/dev time/security/customer retention) it provides.

Question 34

capital efficiency

Answer 34

measures how much funds are invested versus how much revenue is generated.

Question 35

capex

Answer 35

cost to acquire or improve physical assets ( property, plant, equipment ).

Question 36

opex

Answer 36

Variable running costs.

Question 37

free cash flow

Answer 37

The measure of the amount of cash that a business generates after accounting for CapEx. A measure of the cash available to pay dividends, reduce debt, make acquisitions, or invest in new projects.