Visibility
| KPI | Formula | Indicative target |
|---|---|---|
| Tagging | Cost tied to a CMDB application / total cost | ≥ 95% |
| Metric coverage | VMs reporting usage metrics / total VMs | 100% |
| Scopes under budget alert | Scopes with an active alert / total scopes | 100% |
Efficiency
| KPI | Formula | Indicative target |
|---|---|---|
| Commitment coverage | Eligible compute covered by an RI or savings plan / eligible compute | ≥ 80% |
| Commitment utilization | Commitment consumed / commitment purchased | ≥ 95% |
| Effective Savings Rate | 1 − actual compute cost / on-demand cost | Increasing |
| Rightsizing | Correctly sized VMs / total VMs | ≥ 90% |
| Non-prod and VDI Stop/Start | Non-prod VMs running less than half the time / non-prod VMs | ≥ 80% |
| Realized / identified savings | Savings measured on the bill / savings recommended | Increasing |
Steering
| KPI | Formula | Indicative target |
|---|---|---|
| Forecast accuracy | Gap between forecast and actual, in % | Under 5 to 10% |
| Unit cost (unit economics) | Cloud cost / business unit (customer, order, transaction) | Stable or decreasing |
| Average cost per VM | Full monthly VM cost, disks included / number of VMs | Decreasing |
| Anomaly detection time | Time between the start of a drift and the alert | Under a day |
| FinOps scoring | Maturity score out of 100, per application or business unit | Increasing |
| Carbon intensity | kg CO₂e per VM or per business unit | Decreasing |
How to keep them alive
- A dashboard refreshed daily, with each KPI overall and by business unit: see our FinOps dashboard.
- A monthly SteerCo that looks at the gaps to targets and decides on actions.
- Few indicators: ten tracked KPIs beat forty ignored ones.
The targets above are orders of magnitude observed in our engagements. They adjust to your maturity: the aim isn't “Run” everywhere.