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How It Works
The FinOps Framework defines three iterative phases: Inform, Optimize, and Operate. In the Optimize Phase, teams move from visibility to action. They use the cost data, allocation reports, and efficiency metrics gathered during the Inform Phase to make concrete changes. Common actions include purchasing Reserved Instances or Savings Plans to lock in discounted rates, rightsizing over-provisioned compute resources, eliminating unused capacity, and improving commitment coverage across AWS, Azure, and GCP. On AWS, this means selecting the right Savings Plan or Reserved Instance type. On Azure, it means evaluating Reservations and Azure Savings Plans. On GCP, it means applying Committed Use Discounts. The Optimize Phase is not a one-time event; it feeds directly into the Operate Phase, where governance processes embed these improvements into standard workflows.
Why It Matters for Cloud Cost
Without the Optimize Phase, cost visibility produces no savings. Teams may know they are overspending but lack the structured process to act on that knowledge. The result is discount programs left unpurchased, over-provisioned instances left running, and waste that compounds month over month. The Optimize Phase creates the forcing function that converts data into financial outcomes. For finance and engineering leaders, it is the phase where cloud cost analysis translates into budget relief.
Usage AI’s Autopilot mode operationalizes the Optimize Phase continuously, purchasing and adjusting commitment-based discounts across AWS, GCP, and Azure with 24-hour recommendation refresh and no human approval required.