Key Terminology

As you complete the lab content, you may come across some unfamiliar terms. Here is a list of some key terminology to keep in mind when discussing Apptio Cloudability:

• FinOps – Cloud FinOps is an evolving cloud financial management discipline and cultural practice that enables organizations to get maximum business value by helping engineering, finance, and business teams to collaborate on data-driven spending decisions.
• Rightsizing – is a form of optimization where measurements are taken over time to assess the periodic requirements of a workload running on the cloud, and to match it to a virtual resource which is sized to run it efficiently with a minimum of waste. It is important to measure actual workload demand in small increments rather than using average load figures to be sure that workloads requiring larger instances for peak demand are accommodated. Rightsizing can be used as a technique to save cost but must always involve technology oversight as well.
• Savings Plan (SP) – Each cloud service provider (CSP) provides customers the ability to discount on demand rates for cloud services used in exchange for a commitment to use minimum level of resources for a specified term. Depending on the CSP and the cloud services used, this commitment may be based on an upfront payment for a certain number of resource units, time units, or monetary value; SPs come with various payment options and timeframes
• Reserved Instance (RI) – a commitment to use a cloud resource (usually of a specific type, location, and size) for a certain period of time (usually 1 or 3 years) in exchange for a discounted rate.