Shift Left

Embracing the "Shift Left" Approach in FinOps: A Key to Cloud Cost Optimisation

In the world of FinOps, “Shift Left” has emerged as a powerful strategy to optimise cloud costs. This approach, which involves integrating financial operations and cost management earlier in the development lifecycle, is increasingly popular among financial institutions, tech firms, and enterprises looking to cut down cloud expenses. But what does "Shift Left" actually entail, and how does it intersect with FinOps and cloud cost management? Let’s delve into this strategy, its processes, and its outcomes to understand how it can benefit organisations aiming for efficient cloud usage.

Understanding the Shift Left Initiative

At its core, "Shift Left" means bringing essential processes, often relegated to later stages, into the initial phases of development. Traditionally, cost management practices within FinOps (short for Financial Operations) were applied after a product or service was deployed in the cloud. This delay often led to unforeseen costs and inefficiencies, as resources were not optimally sized, configured, or managed for cost-effectiveness. The Shift Left approach, however, integrates these cost considerations early on, thereby allowing for a more controlled and cost-efficient cloud migration.

For organisations, this shift is crucial. Moving cost management to earlier stages of the cloud adoption journey allows developers and financial managers to evaluate, plan, and design for cost efficiency from the start. This proactive strategy can result in significant savings, as it prevents the common practice of over-provisioning resources by basing cloud architecture on actual needs rather than a one-size-fits-all approach.

The Shift Left Process: A Step-by-Step Approach

To successfully implement Shift Left within a FinOps framework, organisations can follow a structured process that ensures cost management is embedded in each phase of the cloud development lifecycle:

1. Planning and Requirements Gathering
   During the initial planning stage, teams work to define cloud requirements based on historical data, anticipated workloads, and future scalability needs. Instead of merely replicating on-premises resources in the cloud, FinOps practitioners evaluate actual usage patterns, allowing for leaner resource allocation from the outset.

2. Resource Sizing and Optimisation
   Once requirements are defined, resource sizing becomes the focus. Leveraging insights from historical data, FinOps practitioners can identify opportunities for cost savings by right-sizing resources—an approach that typically results in over 95% of resources being optimised, with many reduced by as much as 50%. This right-sizing ensures that resources align with workload demands, avoiding the waste and costs of excessive provisioning.

3. Selecting Cost-Effective Services
   The Shift Left approach also involves guiding engineers to choose the most cost-effective cloud services for storage, compute power, and data processing. By understanding the financial implications of each choice early on, engineers can select configurations that deliver required performance without inflating costs.

4. Embedding Continuous Cost Management
   Cost management doesn’t stop at launch; instead, Shift Left promotes a culture of continuous monitoring and adjustment. Using FinOps tools, teams can keep track of cloud expenditure, ensuring that usage remains within budget and aligned with business needs.

Outcomes of the Shift Left Approach in FinOps

The Shift Left strategy yields numerous benefits for organisations focused on cloud efficiency and financial control. Some of the key outcomes include:

• Enhanced Cost Predictability and Control
  By embedding cost considerations in the design phase, organisations can better anticipate expenses and avoid unpredictable budget overruns. When cost control is applied after deployment, it often leads to rework, delays, and a cycle of inefficiency. The Shift Left approach eliminates these issues, as budgets are managed and expectations set early on.

• Faster Time to Market
  Because teams have clear financial parameters from the beginning, they can proceed with confidence, knowing they are within budget constraints. This proactive approach minimises the back-and-forth over resource allocation and budgeting issues, enabling faster product releases and enhancing an organisation’s competitiveness in the market.

• Responsible Cloud Usage and Reduced Waste
  Shift Left doesn’t just save money; it cultivates a culture of responsible cloud usage. Engineers become more conscious of their decisions, focusing on performance requirements while respecting cost limits. This approach significantly reduces cloud waste, which can occur when resources are left idle, oversized, or inefficiently configured.

• Improved Collaboration Across Teams
  The Shift Left approach fosters cross-functional collaboration between finance, engineering, and operations teams. Through early engagement, these teams work together on cost-optimised solutions, establishing a shared understanding of budget constraints and resource requirements that reduces friction later on.

The Relationship Between Shift Left and FinOps

FinOps is a cultural and operational shift that encourages organisations to take control of their cloud expenditure by aligning teams on cost-efficient practices. Shift Left is a natural extension of the FinOps philosophy, as it drives cost awareness even further upstream. While FinOps establishes the discipline of cost management, Shift Left operationalises it by embedding these practices into the development lifecycle, from planning to deployment.

The FinOps framework is built on three principles: inform, optimise, and operate. Shift Left supports each of these pillars:

• Inform: By educating teams early on about the financial impact of their design choices, Shift Left ensures cost awareness is integrated into the design and development stages.

• Optimise: By right-sizing resources and selecting cost-effective configurations from the start, Shift Left prevents the need for post-deployment optimisation that could lead to downtime or degraded performance.

• Operate: Shift Left enables continuous improvement and cost management as part of the operational life-cycle, ensuring that cloud usage remains efficient and within budget.

How FinOps Culture Drives Shift Left Success

For Shift Left to be successful, organisations need a strong FinOps culture that emphasises continuous improvement and accountability. This cultural foundation ensures that all stakeholders—engineers, finance professionals, and product managers—are aligned on the importance of cloud cost management. FinOps promotes transparency, allowing each team member to see the financial implications of their actions and to make informed decisions that benefit the organisation as a whole.

By establishing a FinOps culture, organisations can streamline their Shift Left initiatives and realise the full potential of this approach. With everyone contributing to responsible cloud usage and optimised resource allocation, the Shift Left process becomes a natural part of the development lifecycle, leading to sustainable cost savings and operational efficiency.

Conclusion: Is the Shift Left Approach Right for Your Organisation?

The Shift Left approach represents a forward-thinking strategy that not only optimises cloud costs but also promotes a culture of responsibility and accountability in cloud usage. By embedding FinOps principles into the development lifecycle, organisations can achieve cost savings, reduce cloud waste, and deliver products to market faster.

For organisations still grappling with cloud costs and budget overruns, Shift Left offers a proactive solution. Moving cost management to the forefront of cloud adoption is a step towards financial control, operational efficiency, and long-term sustainability. By investing in this approach and fostering a FinOps culture, organisations can stay competitive in today’s fast-paced digital landscape, equipped with a cloud strategy that supports growth, innovation, and profitability.

Ready to Learn More?

If you're interested in how a Shift Left strategy can optimise your organisation’s cloud spend, FinOps Culture is here to help. Arrange a free, no-obligation discussion with our team to explore how we can tailor a FinOps approach to suit your business needs. Connect with us today and take control of your cloud journey from the start.