FinOps Reference Architecture

Huawei Cloud has developed a set of FinOps references based on the FinOps Foundation's framework and Huawei's own practices. The references mainly cover four phases: cost planning, control, analysis, and optimization, as shown in the following figure.

Figure 1 Huawei Cloud FinOps reference architecture

Huawei Cloud also provides various cost management tools to help enterprises practice FinOps on Huawei Cloud and continuously improve cloud cost-effectiveness.

**Table 1** Huawei Cloud cloud cost management tools
Category	Tool	Scenario
Cost planning	Price calculator	Estimating the cost of migrating any combination of new services to the cloud
	Cost and usage forecasting	Forecasting future expenditures of installed base services
	Enterprise organization	Isolating resources and costs for accounts created by large enterprises and group companies
	Enterprise project	Grouping costs based on the organizational structure of small- or medium-sized enterprises which may use individual accounts
	Cost tag	Grouping costs in a fine-grained, more flexible manner, with multiple dimensions supported
	Budget management (including budget reports)	Budgeting or tracking cloud expenditures at different granularities, receiving budget overrun notifications in a timely manner, and regularly learning your latest expenditures
Bill management and cost control	Fund management	Monitoring available amount and tracking unusual expenditures
	Resource package management	Checking whether a resource package is about to be used up
	Bill management	Learning the actual expenditures for each billing cycle and performing multi-dimensional reconciliation
	Cost monitoring	Identifying unexpected cost spikes and reducing cost anomalies
Cost allocation and visualization	Cost analysis (including analysis reports)	Learning cost trends and distributions and gaining insight into the drivers of cost changes
	Cost category	Allocating costs to meaningful categories and splitting shared costs based on your business needs
	Cost details	Obtaining cost allocation details (download and OBS subscription)
	Bill storage	Storing bill details in an OBS bucket
	Cloud intelligence dashboard (CXO dashboard)	Dashboard collection provided for CXOs, executives, and organization managers
Cost savings and optimization	Optimization option of changing pay-per-use to yearly/monthly	Finding cost-savings opportunities for pay-per-use resources
	Resource package usage/coverage analysis	Learning the usage of purchased resource packages
	Resource package recommendations	Getting recommendations for purchasing resource packages
	Resource optimization	Identifying idle resources
	Optimization Advisor	Identifying underutilized or idle cloud resources