Cloud Cost · Tier 2 of 5

Cloud Cost — Aware.

You see the bill. You don’t yet control it. Visibility exists, tags exist, dashboards exist — behaviour hasn’t changed. Coverage of commitments and lifecycle policy are the next 15-30%, but ownership is the unlock.

~42% of orgs at this stage per FinOps Foundation State of FinOps 2024. Typical realised savings YoY: 5-12%. CFO has visibility; engineers don’t change behaviour yet.

What this tier actually looks like.

The CFO has a cloud-cost dashboard. The CIO presents trend slides quarterly. Per-team cost is visible somewhere — but nobody on the engineering team looks at it before designing the next service. Anomalies get flagged a week after they happen.

You probably have:

Why most teams get stuck here.

Aware-tier orgs typically stall because they treat cost as a finance problem. Three patterns that keep teams here:

The substrate move is changing where the cost signal lives: out of finance’s monthly report, into the engineer’s daily flow.

The three substrate moves to the next tier.

1. Per-service cost in the developer’s daily view.

Wire per-service cost into Backstage / Cortex / Slack / wherever engineers already look. OpenCost, Kubecost, CloudHealth, Vantage all do this.

2. Commitment coverage on a quarterly review cadence, target 70-90%.

FinOps Foundation guidance. Coverage above 70% buys 15-25% off on covered usage. Below 50%, you’re leaving real money on the table. Above 90%, you’re locked into the current spend shape; risky for orgs anticipating growth or divestiture.

3. Named owner per service spend. Cost regressions become incidents.

Every service has an owner attached to its monthly spend. Cost spike > 30%? Owner-alert, expected-response SLA, postmortem if not resolved within 48 hours. Cost becomes a reliability metric, not a finance ask.

What changes when you cross.

The Cloud Commitment Optimiser calculator is the tool for tuning the second move. The GenAI Cost-Per-Outcome calculator is the one to add when AI inference becomes >5% of cloud spend.

Run the diagnostic.

To find out whether your team scores at this tier or another, run Cloud Cost. It takes 2–4 minutes and surfaces both your overall tier and the capability breakdown that shows you where the move starts.

For the bigger picture: the compound diagnostic takes results from all six diagnostics and shows you the substrate gap that bounds your overall delivery, not the per-discipline symptom.