Broadcom’s Andy Nallappan on what cloud success really looks like
With
on-prem,
the
mentality
is
around
allocation
and
sunk
costs.
In
this
model,
software
engineers
are
not
motivated
to
keep
costs
down
because
they
think
of
the
allocation
as
a
tax.
‘My
LOB
paid
the
tax,
so
it
doesn’t
matter
if
I
waste
money.
With
on-prem,
the
mentality
is
around
allocation
and
sunk
costs.
In
this
model,
software
engineers
are
not
motivated
to
keep
costs
down
because
they
think
of
the
allocation
as
a
tax.
‘My
LOB
paid
the
tax,
so
it
doesn’t
matter
if
I
waste
money.’
But
in
the
cloud,
that
mindset
needs
to
change.
Software
engineers
should
know
how
much
the
cloud
costs
for
their
area,
have
visibility
into
where
they
spend
money,
and
be
equipped
to
manage
those
costs,
because
the
cloud
is
a
land
of
opportunity.
Allocation
doesn’t
work
in
the
cloud.
Can
you
walk
through
an
example
of
FinOps
in
action?
Our
on-prem
software
testing
labs
were
running
different
operating
systems
and
hardware
combinations,
because
every
customer
is
unique.
We
had
to
test
each
combination,
and
we
were
allocating
those
costs
to
the
software
businesses.
When
I
moved
the
labs
to
the
cloud,
I
told
the
engineers
to
move
only
what
they
are
working
on
right
now.
When
they
need
more
cloud
services,
they
are
empowered
to
get
them;
they
don’t
need
to
ask
my
permission.
But
I
also
gave
them
financial
goals
and
visibility
into
the
costs
of
the
tools.
I
do
control
the
costs.
I
govern
the
costs.
When
we
were
in
data
centers,
IT
would
buy
the
hardware,
and
because
they
knew
they
needed
headroom,
they
would
overbuy
and
allocate
those
costs
to
the
businesses.
Today,
the
engineers
themselves
are
empowered
to
buy
only
what
they
need,
and
to
hit
their
own
financial
goals.
Those
savings
are
a
part
of
the
P&L
and
have
a
positive
impact
on
the
engineers’
bonuses.
FinOps
has
helped
to
change
the
sunk
cost
mentality.
The
engineers
know
that
if
they
bring
cloud
costs
down,
they
are
contributing
to
their
business’s
P&L
and
their
bonus
goes
up.
They
are
excited
by
the
new
model.
‘As
long
as
I
save
money
and
align
with
my
business
model,
I
can
use
the
cool
services
in
the
cloud.
I
don’t
have
to
ask
permission.’
What
are
other
mistakes
companies
should
avoid
when
moving
to
the
cloud?
Companies
should
avoid
the
lift-and-shift
approach
and
understand
that
you
cannot
refactor
every
application
on
day
one.
To
rightsize
your
move
to
the
cloud,
you
need
people
who
know
the
cloud,
but
these
are
not
the
same
people
who
have
been
managing
your
on-prem
environment
for
the
last
20
years.
It
is
also
important
to
understand
that
in
your
first
year
in
the
cloud,
your
costs
will
be
higher
than
in
years
two,
three,
and
four,
but
you
will
be
able
to
do
incremental
innovations.
With
on-prem
data
centers,
you
innovate
once
in
five
years
because
that’s
how
data
center
technology
refresh
works.
With
the
cloud,
you
innovate
every
quarter,
month,
and
week.
That’s
the
beauty
of
the
cloud.
What
is
your
advice
to
companies
moving
to
the
cloud?
Moving
to
the
cloud
is
all
about
changing
the
culture,
rightsizing
your
approach,
and
having
a
roadmap
to
get
into
a
dynamic
architecture
that
scales
up
and
down
during
the
week,
and
comes
way
down
on
the
weekends
when
people
are
not
working.
That’s
how
you
can
scale.
But
you
cannot
put
the
same
wine
in
the
new
bottle
and
call
it
new
wine.
You
need
to
develop
a
cloud-conscious
culture
by
bringing
in
new
leaders
who
have
a
FinOps
mindset
and
a
focus
on
security.
It
is
also
important
to
bring
the
software
groups
together.
We
have
consortia
for
DevOps,
security,
and
cloud,
so
that
the
developers
can
talk
to
each
other
and
not
reinvent
every
time.
Developers
love
to
build
their
own
tools,
but
that’s
not
necessary
in
the
cloud.
We
bring
the
developers
together
so
that
they
can
be
proud
of
what
they
are
doing
and
share
it.
With
FinOps,
we
shift
their
pride
to
saving
money
and
contributing
to
customer
outcomes.
It’s
not
about
showing
them
a
PowerPoint
that
says,
‘Cloud
Conscious
Culture.’
It
is
about
showing
them
the
outcome
of
their
work.
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