FinOps Implementation

The Complete FinOps Implementation Checklist: Azure and OCI

A step-by-step action plan to transform your cloud financial management in 90 days

By CloudCostChefs Team | Published: 6/7/2025

FinOpsAzureOCIImplementationCost Optimization

Introduction: Your FinOps Transformation Roadmap

This comprehensive checklist consolidates all the strategies, tools, and techniques covered in our FinOps training materials into a practical, 90-day implementation plan. Whether you're starting from scratch or optimizing an existing cloud environment, this roadmap provides the specific actions needed to achieve sustainable cost optimization.

Organizations following this checklist typically achieve 20-40% cost reduction within the first 90 days while building the foundation for ongoing optimization. The key is systematic implementation, starting with high-impact, low-risk actions and progressing to more sophisticated optimization strategies.

Phase 1Days 1-30

Phase 2Days 31-60

Phase 3Days 61-90

Azure

OCI

Both

Foundation & Visibility (Days 1-30)

Establish baseline visibility into your cloud spending and set up the fundamental tools and processes for cost management.

1Baseline Assessment and Tool Setup

Environment Assessment

Azure: Access Azure Cost Management & Billing in Azure portal

OCI: Access FinOps Hub via Console → Billing & Cost Management → Overview

Document current monthly cloud spending by environment (production, development, testing)

Identify top 10 highest-cost services/resources in each cloud

Create inventory of all subscriptions (Azure) and compartments (OCI)

User Access and Permissions

Azure: Grant cost management reader access to key stakeholders

OCI: Provide FinOps Hub access to finance and engineering team leaders

Create shared mailbox for budget alerts and notifications

Document who needs access to which cost management functions

Set up cost management review meeting schedule (weekly recurring)

2Budgets and Alerting

🔷Azure Budget Implementation

Create master budget for overall Azure spend

Set up subscription-level budgets for each environment

Configure resource group budgets for major applications

Set alert thresholds at 70%, 90%, and 100% of budget

Configure both actual spend and forecast-based alerts

Test alert notifications to ensure proper delivery

🔶OCI Budget Implementation

Establish compartment-level budgets aligned with cost responsibility

Set up Universal Credits tracking (if applicable)

Configure machine learning-based forecast alerts

Create budget hierarchy: overall → compartment → project

Set up escalating alert recipients (team → manager → finance)

Document budget ownership and responsibility matrix

3Cost Allocation and Tagging

Tagging Strategy Development

Define mandatory tags: Department, Project, Environment, Owner, CostCenter

Azure: Create Azure Policy to enforce tagging compliance

OCI: Implement tagging via compartment structure and resource metadata

Document tagging standards and governance policies

Create automated tagging for new resource creation

Implementation and Cleanup

Tag all existing untagged resources

Create cost allocation views based on tags

Azure: Use Resource Graph to identify untagged resources

OCI: Leverage compartment structure for natural cost boundaries

Set up cost allocation reports for showback/chargeback

4Initial Optimization Identification

🔷Azure Advisor Implementation

Access Azure Advisor and filter by cost recommendations

Document all cost optimization recommendations

Prioritize recommendations by impact and risk level

Schedule implementation of top 3 low-risk recommendations

Set up weekly Advisor recommendation review process

🔶OCI Cloud Advisor Implementation

Review Cloud Advisor cost optimization recommendations

Filter recommendations by cost impact and implementation complexity

Create implementation plan for high-impact recommendations

Document baseline utilization metrics for future comparison

Schedule regular Cloud Advisor review sessions

Quick Wins and Immediate Optimization (Days 31-60)

Implement high-impact, low-risk optimizations to achieve immediate cost savings while building momentum.

5Idle and Underutilized Resources

Resource Cleanup Initiative

Azure: Use Azure Resource Graph to identify idle VMs (CPU < 5% for 7 days)

OCI: Identify underutilized compute instances using metrics data

Create inventory of orphaned resources (unattached disks, unused load balancers)

Document approval process for resource deletion

Execute cleanup of clearly unused resources

Development Environment Optimization

Implement auto-shutdown schedules for development VMs

Azure: Use Azure Automation for scheduled shutdown/startup

OCI: Create Functions for automated lifecycle management

Set up weekend shutdown policies (Friday 6 PM - Monday 8 AM)

Calculate and document savings from implementation

6Right-Sizing Analysis

Compute Right-Sizing

Azure: Analyze VM utilization using Azure Monitor

OCI: Leverage flexible compute shapes for precise sizing

Identify oversized virtual machines (average CPU < 25%, memory < 50%)

Create right-sizing plan prioritizing non-production environments

Execute right-sizing for development/testing environments first

Database and Storage Right-Sizing

Azure: Review SQL Database DTU/vCore utilization

OCI: Analyze Autonomous Database auto-scaling patterns

Identify oversized database instances

Review storage utilization and identify over-provisioned volumes

Plan right-sizing implementation for production environments

7Storage Optimization

Storage Lifecycle Implementation

Azure: Create storage lifecycle management policies

OCI: Implement Object Storage lifecycle policies

Set up automatic tiering: Hot → Cool → Archive based on access patterns

Review backup retention policies and adjust as appropriate

Delete unnecessary snapshots and old backups

Archive and Cleanup

Identify data eligible for archive storage tiers

Azure: Move infrequently accessed blobs to Cool or Archive tiers

OCI: Implement automatic archiving for older data

Clean up abandoned storage accounts and unused file shares

Document storage optimization savings

8Reservation and Commitment Analysis

Reserved Instance Planning

Azure: Use Azure Advisor to identify reservation candidates

OCI: Analyze usage patterns for Universal Credits optimization

Calculate potential savings from 1-year and 3-year commitments

Start with conservative reservations (70% of baseline usage)

Document reservation strategy and approval process

Implementation Preparation

Create business case for reserved instance purchases

Get necessary approvals for commitment spending

Plan reservation purchase timeline

Set up tracking for reservation utilization

Schedule regular reservation optimization reviews

Advanced Optimization and Automation (Days 61-90)

Implement sophisticated optimization strategies and automation to ensure sustainable cost management.

9Automation Implementation

Automated Scaling

Azure: Implement auto-scaling for Virtual Machine Scale Sets

OCI: Set up instance pool auto-scaling

Configure application-level auto-scaling where applicable

Test scaling policies in non-production environments first

Monitor scaling effectiveness and adjust policies

Automated Governance

Azure: Create Azure Policy for resource creation governance

OCI: Implement compartment quota policies

Set up automated compliance checking

Create approval workflows for high-cost resource creation

Implement automatic tagging for new resources

10Advanced Cost Monitoring

Anomaly Detection

Azure: Set up cost anomaly detection alerts

OCI: Configure budget forecast alerts with machine learning

Create dashboards for cost trend monitoring

Set up automated reporting for stakeholders

Implement cost spike investigation procedures

Advanced Analytics

Create executive-level cost reporting dashboards

Azure: Set up Power BI integration for advanced analytics

OCI: Leverage FinOps Hub for comprehensive reporting

Implement cost attribution and chargeback reporting

Create cost optimization KPI tracking

11Cultural and Process Integration

FinOps Team Establishment

Define FinOps team roles and responsibilities

Create cross-functional team with engineering, finance, and business representatives

Establish regular cost optimization review meetings

Create cost optimization success metrics and goals

Document FinOps processes and procedures

Training and Enablement

Create cost optimization training materials for development teams

Conduct FinOps awareness sessions across the organization

Establish cost optimization best practices documentation

Create cost-conscious development guidelines

Set up ongoing education and certification programs

12Advanced Optimization and Planning

Architectural Optimization

Review application architectures for cost optimization opportunities

Azure: Evaluate PaaS vs. IaaS cost trade-offs

OCI: Optimize Oracle workload placement for maximum savings

Plan microservices cost optimization strategies

Create cost-optimized reference architectures

Long-term Strategic Planning

Develop 12-month cost optimization roadmap

Plan advanced optimization initiatives (AI/ML for cost prediction)

Evaluate multi-cloud cost optimization strategies

Create cost optimization success celebration and recognition program

Plan quarterly cost optimization review and planning sessions

Specialized Checklists by Cloud Provider

AzureAzure-Specific Advanced Actions

🔷Azure-Native Tool Optimization

Set up Azure Resource Graph queries for cost optimization

Implement Azure Automation runbooks for cost management

Use Azure Logic Apps for automated budget response

Leverage Azure Monitor for custom cost alerting

Implement Azure Policy for cost governance

🔷Azure Hybrid Benefit Optimization

Inventory existing Windows Server and SQL Server licenses

Calculate Azure Hybrid Benefit savings potential

Plan license conversion strategy

Implement hybrid benefit for applicable workloads

Track hybrid benefit utilization and savings

🔷Azure Reserved Instance Optimization

Purchase compute reservations for stable workloads

Implement SQL Database reserved capacity

Consider Cosmos DB reserved capacity for applicable workloads

Set up reservation alerts and utilization monitoring

Plan reservation exchanges as usage patterns change

OCIOCI-Specific Advanced Actions

🔶OCI Always Free Tier Maximization

Migrate appropriate development workloads to Always Free tier

Use Always Free Autonomous Databases for development/testing

Leverage Always Free compute for monitoring and build agents

Optimize use of 10TB free monthly data transfer

Plan architecture to maximize Always Free tier utilization

🔶OCI Universal Credits Optimization

Analyze usage patterns across all OCI services

Model Universal Credits commitment scenarios

Purchase optimal level of Universal Credits for predictable savings

Set up Universal Credits utilization monitoring

Plan credit allocation across different services

🔶Oracle Licensing Optimization

Evaluate Bring Your Own License (BYOL) opportunities

Calculate Oracle Support Rewards potential

Plan Oracle workload consolidation for licensing efficiency

Optimize Autonomous Database licensing model selection

Leverage Oracle licensing mobility between on-premises and cloud

Success Metrics and KPIs

Financial Metrics

Track month-over-month cost reduction percentage

Monitor cost per application/service

Measure waste elimination (unused resources percentage)

Calculate ROI of cost optimization initiatives

Track budget variance and accuracy improvements

Operational Metrics

Monitor alert response time and effectiveness

Track FinOps team productivity and engagement

Measure cost optimization recommendation implementation rate

Monitor automated optimization process effectiveness

Track stakeholder satisfaction with cost visibility

Cultural Metrics

Measure cost optimization training completion rates

Track cost-conscious decision making in development processes

Monitor cross-team collaboration on cost optimization

Assess cost optimization awareness across the organization

Evaluate FinOps process adoption and maturity

Risk Mitigation and Troubleshooting

Common Implementation Challenges

Technical Challenges

Issue:

Inaccurate cost allocation due to poor tagging

Solution:

Implement mandatory tagging policies before resource creation

Issue:

Resistance to auto-shutdown policies

Solution:

Start with development environments and demonstrate savings

Issue:

Difficulty getting stakeholder engagement

Solution:

Show immediate savings and cost visibility improvements

Organizational Challenges

Issue:

Lack of cost ownership across teams

Solution:

Implement showback reporting and cost allocation

Issue:

Fear of performance impact from optimization

Solution:

Start with non-production environments and measure impact

Issue:

Conflicting priorities between cost and performance

Solution:

Establish cost-per-performance metrics and balanced objectives

Rollback Plans

Document all optimization changes for potential rollback

Create resource restoration procedures for accidentally deleted resources

Maintain performance monitoring during optimization implementation

Have escalation procedures for optimization-related issues

Create communication plan for stakeholders during optimization activities

Monthly Review and Continuous Improvement

Month 1 Review

Calculate total cost savings achieved in first 30 days

Review budget accuracy and adjust forecasts

Assess team adoption of new cost management processes

Identify top 3 optimization opportunities for next month

Document lessons learned and process improvements

Month 2 Review

Measure cumulative cost optimization impact

Review and adjust automation policies based on performance

Assess stakeholder satisfaction with cost visibility improvements

Plan advanced optimization initiatives

Evaluate need for additional training or resources

Month 3 Review

Conduct comprehensive 90-day transformation assessment

Calculate total ROI of FinOps implementation

Plan next quarter optimization roadmap

Create success story documentation for organizational sharing

Establish ongoing quarterly optimization planning process

Long-term Sustainment Strategy

Ongoing Process Integration

Integrate cost considerations into architecture review processes

Make cost optimization a standard part of project planning

Include cost efficiency metrics in team and individual goals

Establish cost optimization as a continuous improvement discipline

Create innovation time allocation for cost optimization initiatives

Technology Evolution Planning

Stay current with new cost management features from cloud providers

Evaluate emerging FinOps tools and technologies

Plan for integration of AI/ML for predictive cost optimization

Establish regular technology review cycles

Create feedback loops with cloud providers for feature requests

Conclusion: Your FinOps Journey

This comprehensive checklist provides a structured approach to implementing FinOps practices across your Azure and OCI environments. By following this 90-day roadmap, you'll establish the foundation for ongoing cloud cost optimization while achieving significant immediate savings.

Remember that FinOps is not a one-time project but a continuous journey. The most successful organizations integrate these practices into their everyday operations, creating a culture of cost awareness and optimization that evolves with their cloud usage.

Ready to implement your FinOps strategy?

Check out our collection of free FinOps tools designed to help you implement these strategies more efficiently, or explore our FinOps for Beginners guide if you're just getting started.

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