At the recent FinOps X 2024 conference, many cloud providers announced their support for the FinOps Open Cost and Usage Specification (FOCUS). Initiated by the FinOps Foundation, FOCUS is a new specification that simplifies cloud management by setting clear guidelines for how cloud vendors should report cost and usage data.
This specification aims to standardize billing data across different platforms, which can lead to more consistent financial management and operational insights. By adopting FOCUS, organizations can improve their initial handling of cloud financial data, potentially leading to better cost management.
In this article, we’ll discuss what FOCUS is, what advantages it can offer your organization, and how to get started.
What Is FinOps FOCUS?
FOCUS, which stands for FinOps Cost and Usage Specification, is an open-source specification initiated by the FinOps Foundation. It’s designed to standardize the way cloud billing and usage data are presented by different cloud vendors, aiming to reduce the complexity and variability that FinOps practitioners face.
Its primary aim is to simplify interactions with various cloud vendors by providing a unified framework.
Image Source: FinOps FOCUS
At its core, FOCUS delivers a specification, not a standard. This specification doesn’t just suggest guidelines — it sets precise requirements for how cloud service providers should report cost and usage data. By doing this, FOCUS enables organizations to better manage and understand their cloud spending and usage patterns.
FOCUS exists for two reasons:
- Consistency: Cloud providers often have their own unique formats for billing data, leading to confusion and inefficiency for multi-cloud users. FOCUS introduces a standard format that all providers can follow, which simplifies the analysis and comparison of costs across different vendors.
- Transparency: The standardized format ensures that data are clear and consistent, helping organizations make better-informed decisions about their cloud usage and spending.
According to the FinOps Foundation:
“The initial Specification introduces common taxonomy, terminology, and metrics for billing datasets produced by large IaaS providers. However, the Specification aims to be extensible to other cloud SaaS billing datasets, including networking, observability, and security tools.”
By adopting the FinOps FOCUS specification, your organization can streamline its cloud financial operations even more, making it easier to achieve cost efficiency and operational excellence. This is especially beneficial if you work with multi-cloud environments.
Which Cloud Service Providers Have Adopted FOCUS?
Four of the largest cloud service providers have already announced their support for the FOCUS specification to make cloud billing easier for their customers:
- Microsoft Azure
- Google Cloud
- Amazon Web Services (AWS)
- Oracle Cloud Infrastructure (OCI)
The adoption of FOCUS among these providers marks a significant step towards simplifying cloud management.
Adoption is expected to continue, according to the FinOps Foundation:
“As adoption continues, more vendors plan to support FOCUS data ingestion, adopt FOCUS terminology in their platforms, and align their APIs to the requirements in the Specification.”
This expanding support underscores the industry’s move towards more transparent and manageable cloud billing practices.
Who Should Use FOCUS?
FOCUS serves two primary groups within the cloud billing ecosystem: those who generate billing data and those who consume it.
Image Source: FOCUS 1.0
- Cloud vendors (generators): Cloud vendors, including Cloud Service Providers (CSPs), Cloud Software-as-a-Service (SaaS) Providers, and Independent Software Vendors (ISVs), generate detailed billing data for their customers.
FOCUS provides these vendors with a set of precise requirements for billing datasets, ensuring consistency in data presentation and simplifying customer understanding. This standardization helps reduce billing-related support queries and builds customer trust through transparent pricing.
- FinOps practitioners (consumers): FinOps practitioners use FOCUS to streamline the handling and analysis of billing data from various cloud services. The specification enables them to access standardized data, which simplifies reporting and analytics. This efficiency allows them to spend less time on data management and more on strategic activities like cost optimization.
- FinOps vendors (both): FinOps vendors develop tools that assist with financial operations on cloud platforms. These vendors both generate and consume billing data, and therefore, must have FOCUS-conforming tools and reports.
This dual role enhances their ability to offer a consistent user experience across multiple clouds and simplifies the integration of other services.
For more information on the use cases, refer to the FinOps 1.0 article by the FinOps Foundation.
What Are the Benefits of Adapting to FOCUS?
Adopting FOCUS can transform how you optimize your cloud cost savings and track your usage data, making it more efficient and consistent.
The specification simplifies cloud cost management, enhances analysis, reduces complexity, and brings greater transparency to cloud billing. Here’s how:
Unified Data Management
FOCUS standardizes datasets across cloud and on-premises environments, enabling accurate comparisons and more informed decisions. This uniformity reduces the need for manual data normalization, freeing up teams to focus on strategic analysis and cost optimization.
Enhanced Collaboration and Skill Portability
The consistent terminology and data structures simplify collaboration across IT, engineering, and finance teams. Additionally, the skills learned are transferable across various platforms and tools, increasing job flexibility and career growth opportunities for FinOps practitioners.
Increased Transparency and Strategic Insights
As an open-source specification, FOCUS ensures that billing practices are transparent and adaptable to changing industry needs. This leads to more predictable financial management and enables organizations to leverage cloud resources more effectively as strategic assets.
Consistency in Financial Reporting
By standardizing billing currencies and formats, FOCUS simplifies financial tracking and reporting. This uniformity helps streamline accounting processes, reduce errors, and enhance the overall accuracy of financial management.
Optimized Multi-Cloud Support
FOCUS facilitates easier management of multi-cloud environments by providing a common framework for all cloud services. This capability allows organizations to seamlessly integrate and analyze data across different cloud platforms, leading to better resource allocation, cost savings, and strategic flexibility in using multiple cloud providers.
For more details, you can explore the Open Source Repository.
How To Get Started With FOCUS: Training and Certifications
Whether you’re new to FinOps or looking to deepen your expertise, here’s how you can start leveraging FOCUS for better cost management:
1. Learn the Basics With Introduction to FOCUS
Start by enrolling in the FinOps Foundation’s free Introduction to FOCUS course. This introductory course covers the basics of FOCUS, including common use cases and key terminology. It’s an excellent first step for those who interact with FinOps reports or billing data, but do not manipulate the data directly.
2. Explore FOCUS Dataset Offerings
Once you understand the basics, explore the specific FOCUS billing datasets offered by major cloud providers such as AWS, Azure, Google Cloud, and Oracle. Each provider publishes documentation on how they structure their FOCUS-compliant data, which is crucial for effective application in your FinOps practices.
You can access their documentation here: AWS, Azure, Google Cloud, and Oracle.
3. Engage With the FinOps Community
Now that you know the basics and understand what each of the main cloud providers offer, consider taking the next step and contributing to the FOCUS project. Contributions can be in the form of code, suggestions, or community discussions.
You can also become a member of the FinOps Foundation. Members often have the opportunity to join the FOCUS Steering Committee, which guides the project’s development and implementation. This can be a great way to influence and shape the direction of FinOps standards.
4. Become a Certified FOCUS Analyst
For professional recognition, you can become a FinOps Certified FOCUS Analyst through the FinOps Foundation. The certification process includes training on FOCUS specifications and FinOps capabilities.
Passing the exam will enhance your credibility and demonstrate your expertise in FinOps and FOCUS methods. It’s a strategic move if you want to advance in your FinOps career and deliver more value to your FinOps team.
Adapting to initiatives like FOCUS isn’t merely following a trend — it’s embracing a shift that is set to redefine cloud cost management. Ultimately, the success of FOCUS will depend on future possibilities and emerging optimization trends.
Stay tuned for more updates as ProsperOps continues to monitor and adapt to these industry trends to help you more effectively manage your cloud costs!
