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Interactive Explainer

Cloud economics (FinOps)

Using cloud resources efficiently so performance stays high and waste stays low.

Cloud economics (FinOps)

Using cloud resources efficiently so performance stays high and waste stays low.

~1 min read
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Cost as a design constraint

In the cloud, the meter is always running. Good architecture is not just fast and secure, it is also cost-aware.

FinOps brings financial accountability to engineering decisions: rightsizing instances, turning off idle environments, and choosing managed services where they save time and money.

Real-world scenario: viral traffic spike

Expert scenario

Scenario: Your app goes viral overnight and traffic increases 1000x. Auto-scaling keeps the app up, but your bill explodes.

Decision: A mature FinOps practice looks not only at scaling up but also at scaling back down after the spike. It also sets budgets, alerts, and cost guardrails so you are not surprised by a one-time marketing campaign or bot traffic.

Traffic spike → auto-scale up → bill explodes

1000x

Auto-scaling keeps the app up—but without scale-down and guardrails, the bill can explode.

Decision: what mature FinOps does

Scale back down

Mature FinOps scales down after the spike, not only up.

Budgets & alerts

Set budgets and cost alerts so you're not surprised by campaigns or bot traffic.

Cost guardrails

Guardrails prevent runaway spend from one-time viral or attack traffic.

Related concepts

Explore topics that connect to this one.

  • High availability (HA) & resilience
  • What is caching?
  • Observability

Practice with these scenarios

Apply this concept in hands-on scenarios.

  • Tag resources for cost allocation

Test yourself: 2 challenges

Apply this concept with scenario-based Q&A.

  • Migrate 50TB from AWS S3 to GCP Cloud Storage
  • Optimize cloud costs for unpredictable workload

Interview prep: 1 resource

Use these to reinforce this concept for interviews.

  • AWS Well-Architected Framework
View all interview resources →

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