Understanding cloud costs can be challenging, but it's essential for maximizing value.

In this episode, hosts Lois Houston and Nikita Abraham speak with Oracle Cloud experts David Mills and Tijo Thomas about how Oracle Cloud Infrastructure offers predictable pricing, robust security, and high performance. They also introduce FinOps, a practical approach to tracking and optimizing cloud spending.

Cloud Business Jumpstart: https://mylearn.oracle.com/ou/course/cloud-business-jumpstart/152957 Oracle University Learning Community: https://education.oracle.com/ou-community LinkedIn: https://www.linkedin.com/showcase/oracle-university/ X: https://x.com/Oracle_Edu

Special thanks to Arijit Ghosh, David Wright, Kris-Ann Nansen, Radhika Banka, and the OU Studio Team for helping us create this episode.

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Episode Transcript:

00:00

Welcome to the Oracle University Podcast, the first stop on your cloud journey. During this series of informative podcasts, we'll bring you foundational training on the most popular Oracle technologies. Let's get started!

00:27

Nikita: Welcome back to another episode of the Oracle University Podcast! I'm Nikita Abraham, Team Lead of Editorial Services with Oracle University, and I'm joined by Lois Houston, Director of Communications and Adoption with Customer Success Services.

Lois: Hi everyone! Last week, we talked about how Oracle Cloud Infrastructure brings together developer tools, automation, and AI on a single platform. In today's episode, we're highlighting the real-world impact OCI can have on business outcomes.

00:58

Nikita: And to tell us about this, we have our experts David Mills and Tijo Thomas back with us. David is a Senior Principal PaaS Instructor and Tijo is a Principal OCI Instructor, and they're both from Oracle University. David, let's start with you. What makes Oracle Cloud Infrastructure the trusted choice for organizations across industries like banking, healthcare, retail, and government?

David: It all comes down to one thing. OCI was built for real businesses, not side projects, not hobby apps, not test servers, but mission-critical systems at scale.

Most clouds brag about their speed, but OCI is consistently fast, even under pressure. And that's because Oracle built OCI on a non-blocking network and bare metal infrastructure, with dedicated resources and no noisy neighbors.

So, whether you're running one application or 1,000, you get predictable, low latency, performance every time as OCI doesn't force you into any specific mold. You want full control? Spin up a virtual machine and configure everything. You need to move fast? Use a managed service like Autonomous Database or Kubernetes. Prefer to build your own containers, functions, APIs, or develop with low code or even no code tools? OCI supports all of it. And it plays nicely with your existing stack—on-prem or in another cloud. OCI adapts to how you already work instead of making you start over.

02:39

Lois: And when it comes to pricing, how does OCI help customers manage costs more effectively?

David: OCI is priced for real business use, not just the flashy low entry number. You only pay for what you use. No overprovisioning, no lock in.

Virtual machines can scale up and down automatically. Object storage automatically shifts to a lower cost tier based on frequency of access. Autonomous services don't need babysitting or patching. And unlike some providers, OCI doesn't charge you to get your own data back. It's enterprise grade cloud without enterprise grade sticker shock.

03:26

Lois: Security and flexibility are top priorities for many organizations. How does OCI address those challenges?

David: OCI treats security as a starting point, not an upsell. From the moment you create an account, every tenant is isolated. All data is encrypted. Admin activity is logged and security tools like Cloud Guard are ready to go. And if you need to prove compliance for GDRP, FedRAMP, HIPAA, or more, you're covered. OCI is trusted by the world's most regulated industries.

Most companies don't live in one cloud. They've got legacy systems, other cloud providers, and different teams doing different things. OCI is designed to work in hybrid and multi-cloud environments.

Connect to your on-prem apps with VPN or FastConnect. Run Oracle workloads in your data center with Cloud@Customer. Interconnect with Azure and Google Cloud or integrate with Amazon. OCI isn't trying to lock you in. It's seeking to meet you where you are and help you modernize without breaking what works.

04:40

Nikita: Can you share an example of a business that's seen measurable results with OCI?

David: A national health care provider was stuck on aging hardware with slow batch processing and manual upgrades. They migrated core patient systems to OCI and used Oracle Autonomous Database for faster, self-managed workloads.

They leveraged Oracle Integration to connect legacy electronic health records, OCI FastConnect to keep real-time sync with data in their on-prem systems, and they went from 12-hour downtime Windows to zero, from three weeks to launch a feature to three days, and they cut infrastructure cost by 38%. And that's what choosing OCI looks like.

05:37

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06:12

Nikita: Welcome back! Tijo, controlling costs while driving innovation is a tough balancing act for many organizations. What are the biggest challenges organizations face when trying to manage and optimize their cloud spending?

Tijo: The first one is unexpected cloud cost. Let's be honest. Cloud bills can be shocking.

You think you've got things under control, that the invoice shows up and you realize it is way over the budget. Without real-time visibility, it is quite hard to catch these surprises before they happen. The next one is with waste of resources and inefficiencies. It is quite common to find resources that are just sitting idle, such as unused storage, underutilized CPU, or overprovisioned memory.

It may not seem like there are much of resource wastage at first, but over time all that is really going to add up. Then there is no clear ownership of cloud spend. It is one of the big problem in cost management. If cost are not clearly tagged to a team or a project, nobody feels responsible, and that makes it really tough to manage or reduce the cloud spend.

There is also misaligned priorities across teams, and looking at different teams like finance, they may want to cut the cost while engineering want to move faster, operations want everything to be up and running. While every team is doing their best, but without a common approach to cost, it becomes challenging to prioritize tasks.

Slow and reactive decision making is another challenge. Most cost issues gets identified after the bill is invoiced, and by then the budget has been already spent. Without timely data, it becomes difficult to make real time changes. And then complex, multi-cloud and regional footprint. As businesses grow across regions and with multi-cloud deployment model, tracking where the budget is going gets really tricky. More services means there are more teams and more complexity. Now, all of these challenges have one thing in common. They need a better way to manage cloud cost together. And this is where FinOps comes in.

08:42

Lois: And what exactly is FinOps? How does it address these cloud cost challenges?

Tijo: FinOps stands for financial operations. It is a framework that brings teams like engineering, operations, finance, and beyond to work together so that the cloud spending becomes smarter, more visible, and better aligned towards business goals. And so FinOps is not just a tool, it is a way of working. According to FinOps Foundation, FinOps lifecycle happens in three phases: inform, optimize, and operate.

The inform phase is about visibility and allocation, which means you gather the cost, usage, and efficiency data in order to forecast and budget. The optimize phase is about rates and usage, and this is where you would take action to optimize or bring efficiencies. And then in operate, you turn those into continuous improvements through policies, trainings, and automation.

09:51

Nikita: Let's unpack FinOps a bit more. Why is understanding your cloud subscription model so fundamental in the Inform phase?

Tijo: Because cost visibility is very important while managing your Oracle Cloud subscription. There are two ways to purchase OCI services. The first one, we refer to it as pay as you go model, which means you pay for what you use, and the second one is called universal credit annual commitment model, where you can purchase a prepaid amount of universal credits, and the prepaid amount will be drawn down based on actual usage.

OCI provides a portal called FinOps Hub, where you can easily track how your usage has changed month by month over the past year. Through the Hub, you can monitor whether you have stayed within your credit allocation or not. You will also see how much of your committed credits have been used, how much is left, and when is your commitment set to expire. The next step is to gain visibility or to understand the cost. In Oracle Cloud Infrastructure, this starts with the service called cost analysis.

OCI Cost Analysis is a service that would help you to filter, group, and visualize your cloud cost in a way that makes sense for your business. You can compare cost over time. You can drill down the cost by services, and track those spending by specific teams or projects. And then finally export detailed reports for finance or leadership reviews. OCI Cost Analysis gives you an interactive, near real-time view of your cloud spending. So you're not just seeing the numbers, you are understanding what is driving them.

The next one is about setting up spending limits and this is done through OCI Budgets. For example, the organization can set up a monthly budget for the development team. If their usage, the cloud usage exceeds 80% of that limit, an alert will be triggered to notify the team. This means you can configure a threshold, send alerts, or even take actions automatically.

12:16

Lois: Tijo, what happens during the Optimize and Operate phases of the FinOps framework?

Tijo: The inform stage was more about awareness. In the optimize phase, you take that data you've collected, and use it to optimize resources and improve efficiency.

In OCI, we'll start with Cloud Advisor. OCI Cloud Advisor finds potential inefficiencies in your tenancy, and offers you guided solutions that explain how to address them. The recommendations help you to maximize cost savings. For example, it gives you personalized recommendations like deleting idle resources or resizing compute instances. Secondly, you can identify steps for performance improvements. And finally, enhance high availability and security with suggesting configurations for your cloud resources.

In the third phase, operate, it is about making optimization as a routine or continuous improvements, and this is done through incorporating FinOps into your organization. OCI provides cost and usage reports that can automatically generate daily reports. These reports would show detailed usage data for every OCI service that you're using. You can export cost reports in FOCUS format. FOCUS is an industry standard and it stands for FinOps Open Cost and Usage Specification.

13:52

Nikita: And what makes the FOCUS format important for organizations?

Tijo: The format enables the cost data to be consistent. It is well structured, and ready to use with other FinOps tools or dashboards. These reports can also ingest into Business Intelligence or analytics tools that will help you with better visualizations. Organizing your resources the right way is the key to get more accurate and simplified data. Without a clear structure, your cost data will be too complex.

In OCI, this structure starts with your tenancy. Tenancy is your top level OCI account, and it represents the presence of cloud for your entire organization. Next, you have compartments. Compartments help you to break down your cloud environment into logical groups, for example, by department or business unit or projects. Then there are tags, and this is where cost visibility gets more meaningful. Tags allow you to assign custom labels to each resources. Things like environment type, cost center, or the owner name. 15:06

Lois: Some people think cost visibility is a concern mainly for finance teams. What's your perspective on this?

Tijo: Cost visibility should be a shared responsibility, which means it shouldn't just be shared with the finance. Engineers, architects, and project owners all need to have access to the cost data that are relevant to them. Because when teams have visibility, they take ownership and that leads to better decisions which are faster, smarter, and more aligned to business goals.

15:42

Nikita: Thank you, David and Tijo, for joining us and sharing your insights.

Lois: If you'd like to learn more, visit mylearn.oracle.com and look for the Cloud Business Jumpstart course. Next week, we'll explore security and compliance in OCI. Until next time, this is Lois Houston…

Nikita: And Nikita Abraham signing off!

16:03

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