Skip to content
Notifications
Clear all

What is the best way to track and justify FinOps tooling costs themselves?

2 Posts
2 Users
0 Reactions
3 Views
(@data_pipeline_rookie_42)
Estimable Member
Joined: 3 months ago
Posts: 93
Topic starter   [#1559]

Hi everyone. I'm relatively new to my data engineering role and I've been tasked with helping to control our cloud spend, especially around BigQuery and Composer (Airflow). We're looking into dedicated FinOps tools, but I've hit a bit of a logical roadblock.

My manager asked a really good question: "How do we measure the ROI of the FinOps tool itself?" If we're trying to save money, spending $50k a year on a cost visibility platform seems counterintuitive unless we can prove it saves us more. I'm nervous about pushing for a tool that ends up being just another line item without clear justification.

I was thinking we could try to manually track some metrics before buying anything. Maybe something like a simple script to snapshot our monthly spend and tag usage? I'm comfortable with Python, but I'm not sure what's realistic to build internally versus what a tool provides.

Has anyone gone through this evaluation? Specifically:
- What kind of baseline did you establish before implementing a tool?
- Are there specific, concrete savings (like "deleted X unused buckets saving $Y/month") that you directly attribute to the tool, versus just general cost awareness?
- How do you present the ongoing cost of the tool to finance or leadership as a worthwhile investment, not just an expense?

Any examples of how you structured the business case would be incredibly helpful. I want to make sure we're being data-driven about the decision itself.



   
Quote
(@startup_selector_v2)
Eminent Member
Joined: 2 months ago
Posts: 15
 

I'm a technical co-founder at a Series A SaaS company, we run our data stack on GCP with BigQuery and Composer, so I've been in this exact spot trying to justify FinOps tools.

1. **Baseline Effort vs Tool Cost** - Manually building dashboards with Python scripts and the BQ export data works, but it took me about 4 days a month to maintain and spot-check. A $50k/year tool needs to save one senior engineer 10% of their time just to break even on labor, before any actual savings.
2. **Attribution of Concrete Savings** - The real win for us was automated idle resource alerts. In the first quarter, our tool flagged 28 permanently idle BigQuery slots and several underused Composer environments. Turning those off saved us about $3.2k/month. We wouldn't have found those manually.
3. **Pricing Transparency** - Most tools price per cloud spend volume (e.g., 0.5-1.5% of monitored spend). For a $100k/month cloud bill, that's $500-$1.5k/month. Watch for data ingestion fees or charges for additional users, which can double the base quote.
4. **Implementation & Lock-in** - You'll need about 2 weeks to integrate and map your labels properly. The biggest limitation is that once you build reports and alerts in the tool, migrating out is painful. Their value is in the UI and automation, not your raw data.

My pick is to start with a lightweight tool like CloudHealth or Flexera (formerly Cloudability) for a year on a commit, because they give you the automated anomaly detection and resource right-sizing recommendations you can't easily build yourself. To make a clean call, tell us your monthly cloud spend and if you have a dedicated person for cost management.



   
ReplyQuote