FinOps and Kubernetes cluster optimization brings significant savings to VW Group

Volkswagen Group has achieved significant cost reductions and resource efficiency in its Kubernetes clusters by implementing the FinOps approach designed by Aspecta. This project not only optimized operations, but also laid the foundation for long-term efficiency in cloud computing.

Key points:

✓ Reduction of cloud resource costs by tens of percent through the FinOps approach
✓ Effective real-time optimization and monitoring of Kubernetes clusters
✓ Improvement of performance and stability of applications on the AWS platform
✓ Flexible solutions tailored to complex IT infrastructures
✓ Long-term savings and technological readiness for future challenges

08. September 2024 ┃ 7 minutes reading

In today's automotive industry, the effective use of cloud technologies is key to staying competitive. Many companies face challenges associated with optimising their Kubernetes clusters, which often leads to over-utilization of resources and unnecessary costs. The trend of implementing FinOps approaches is becoming an increasingly important solution as it enables better cost management and more efficient use of cloud resources.

Client

The Volkswagen Group, one of the world's largest car manufacturers, is renowned for its innovation and technological advancement. The company operates an extensive IT infrastructure, including Kubernetes clusters on the Container as a Service (CaaS) platform in Amazon Web Services (AWS), which supports a wide range of applications and services across the Group.

Problem: Excessive use of resources and high costs

VW Group faced a serious issue with the overuse of resources in their Kubernetes clusters. The analysis revealed that the high memory and CPU usage in these clusters could be significantly reduced. This problem was especially evident during application scaling, unnecessarily consuming resources.

The identified inefficiency brought opportunities to reduce costs by millions of EUR annually, depending on the chosen AWS plan. Optimizing memory and CPU not only reduced operational costs but also enabled better capacity planning and more efficient infrastructure scaling.

The waste of resources has complicated the deployment of new services and prevented VW Group from realizing the full potential of their cloud infrastructure. Streamlining the use of cloud resources was key to strengthening competitiveness in the rapidly changing automotive industry.

The VW Group has set the following goals for optimizing its Kubernetes clusters:

Significantly reduce excessive resource usage in Kubernetes clusters.
Minimise unnecessary costs associated with unused resources.
Establish an effective system for monitoring and managing the use of cloud resources.
Implement a long-term strategy to optimise costs and resource utilisation.
Improve the overall efficiency and performance of the Kubernetes platform.

Solution: Implementation of the FinOps Approach

Aspecta proposed a comprehensive solution based on the implementation of the FinOps approach, which was divided into three phases:

Short-term phase involved the rapid deployment of FinOps tools and conducting an in-depth analysis of resource consumption. This phase was designed to begin immediately and lasted several weeks. During this period, the Aspecta team identified key areas of inefficiency and created a detailed resource usage map across all Kubernetes clusters of VW Group.

Mid-term phase focused on the adaptation of the FinOps approach within developer teams, application owners, and the CaaS team. This included a workshop aimed at shifting the culture and approach to cloud resource usage. Teams learned how to effectively plan and optimize resource usage for their applications and services.

The Long Term Phase focused on continuous improvement and implementing best practices for Kubernetes management. This included the implementation of automated monitoring and optimization tools, regular audits of resource utilization, and the creation of a system to continuously educate and update teams on the latest cloud optimization trends.

Short-term phase:

rapid deployment of FinOps tools and in-depth analysis of resource consumption
Identification of key areas of inefficiency
creation of a detailed map of resource usage across all Kubernetes clusters in the VW Group

Mid-term phase:

adoption of FinOps approach in development teams, application owners and CaaS team
training teams to effectively plan and optimize resources for applications and services

Long-term phase:

implementing best practices for Kubernetes management
automation of monitoring and optimization
creating a system for educating teams in the latest cloud optimization trends

Challenges were encountered during the implementation of the resulting solution, which we overcame as follows:

Initial resistance of teams: One of the main challenges was the initial resistance of some teams to changes in established practices. This problem was overcome through intensive communication and demonstration of the concrete benefits of the new approach.
Complexity of infrastructure: The complexity of the VW Group's existing infrastructure made it difficult to implement a unified approach to optimization. The Aspecta team created a flexible framework that was tailored to the specific needs of different parts of the organization.
Technical issues: Issues such as integration of the new FinOps tools with VW Group's existing systems were resolved by working closely with the client's IT team and phasing in changes that minimised disruption to operations.

Results: Cost reduction and efficient use of resources

The implementation of the FinOps approach and the optimization of Kubernetes clusters have yielded significant results for the VW Group:

✓ Savings on CPU and memory
CPU and memory expenses were reduced by tens of percent, resulting in monthly savings of tens of thousands of EUR.

✓ Improved performance and stability
Applications running on the CaaS platform are now more stable and performant.

✓ Better insight into resource usage
Teams gained more efficient tools for capacity planning and faster deployment of new services.

✓ Positive impact on organizational culture
Teams began actively optimizing resource usage, leading to increased overall efficiency of VW Group's IT operations.

Conclusion

The Kubernetes cluster optimization project for VW Group demonstrates how a strategic approach to cloud resource management can deliver significant financial savings and improve the overall efficiency of IT infrastructure.

The implementation of the FinOps approach has not only solved the acute problem of over-utilization of resources, but also laid the foundation for long-term optimization and effective cost management in cloud computing.

This project highlights the importance of continuous optimization and monitoring in a dynamic cloud computing environment. For the VW Group, this means not only immediate financial savings, but also better preparedness for future technological challenges in the rapidly changing automotive industry.

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