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The Future of FinOps: Engineering Excellence Over Cost Cutting with Etsy's Dany Daya

Last updated

February 18, 2025

Published
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Last updated

February 18, 2025

Published
Topics
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CONTENTS

The Future of FinOps: Engineering Excellence Over Cost Cutting  with Etsy's Dany Daya

Introduction

When discussing cloud optimization, the conversation often gravitates toward cost reduction. However, as Dany Daya, Director of FinOps and Cloud Strategy at Etsy, explains, this approach might be missing the forest for the trees. In this enlightening episode of the Future of Cloud Optimization podcast, I sat down with Dany to explore how Etsy, a global marketplace connecting over 96.7 million buyers with 8.5 million sellers, approaches FinOps through an engineering-first lens.

Transforming FinOps: Beyond Cost Savings

Dany's impact at Etsy has been transformative, with his team negotiating provider agreements worth over $500 million and implementing innovative approaches to cloud optimization. But what sets their approach apart isn't just the impressive numbers – it's the fundamental shift in how they view the relationship between costs and engineering excellence.

"Cost is not the problem – it's a symptom of deeper engineering challenges," Dany emphasizes. This perspective has helped Etsy achieve remarkable results, including reducing storage costs below levels from two years ago by aligning data lifecycles with business needs.

Key Insights from Our Conversation

Engineering-First Mindset

The traditional approach to FinOps often focuses on cost-cutting metrics. However, Etsy's approach recognizes that cost inefficiencies usually point to larger engineering opportunities. This shift in perspective has allowed their teams to address root causes rather than symptoms, leading to more sustainable improvements in both performance and cost efficiency.

Trust and Visibility in Engineering Culture

One of the most striking aspects of Etsy's approach is their trust in their engineering culture. Rather than implementing strict cost control policies, they focus on providing visibility into resource usage. This transparency naturally drives optimization efforts as engineers better understand the impact of their decisions.

"When engineers have clear visibility into their resource utilization, they make better architectural decisions automatically," Dany explains. This approach maintains focus on innovation while ensuring efficiency.

Data-Driven Performance Optimization

Etsy's success in balancing performance and cost comes from their sophisticated, data-driven approach. By thoroughly understanding customer latency requirements and establishing appropriate thresholds, teams can optimize costs without compromising user experience. This methodical approach ensures that optimization efforts align with business objectives.

Pioneering Sustainable Computing

Perhaps one of the most forward-thinking aspects of Etsy's FinOps journey is their commitment to sustainable computing. Starting with basic energy metrics in 2016, they've evolved to implement a comprehensive CO2-based approach. This initiative demonstrates how environmental responsibility can be seamlessly integrated into FinOps practices while supporting cost optimization goals.

Starting Your FinOps Journey

For organizations looking to enhance their cloud optimization practices, Dany offers several fundamental principles:

  1. Start with basic metrics like cost variance and CPU utilization
  2. Maintain transparent communication across teams
  3. Get comfortable with uncertainty
  4. Set reasonable error margins that allow for natural cost fluctuations

Looking Ahead: The Role of AI and AutomationOur conversation concluded with an exploration of how AI and automation will shape the future of cloud optimization. While specific details about these emerging technologies are evolving rapidly, the fundamental principles of engineering excellence and data-driven decision-making will remain crucial.ConclusionThe conversation with Dany Daya reveals that successful FinOps is about much more than cost reduction. It's about fostering an engineering culture that naturally drives efficiency, sustainability, and innovation. By focusing on engineering excellence rather than pure cost metrics, organizations can build more sustainable and efficient cloud operations that support long-term business growth.

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CONTENTS

The Future of FinOps: Engineering Excellence Over Cost Cutting with Etsy's Dany Daya

Published on
Last updated on

February 18, 2025

Max 3 min
The Future of FinOps: Engineering Excellence Over Cost Cutting  with Etsy's Dany Daya

Introduction

When discussing cloud optimization, the conversation often gravitates toward cost reduction. However, as Dany Daya, Director of FinOps and Cloud Strategy at Etsy, explains, this approach might be missing the forest for the trees. In this enlightening episode of the Future of Cloud Optimization podcast, I sat down with Dany to explore how Etsy, a global marketplace connecting over 96.7 million buyers with 8.5 million sellers, approaches FinOps through an engineering-first lens.

Transforming FinOps: Beyond Cost Savings

Dany's impact at Etsy has been transformative, with his team negotiating provider agreements worth over $500 million and implementing innovative approaches to cloud optimization. But what sets their approach apart isn't just the impressive numbers – it's the fundamental shift in how they view the relationship between costs and engineering excellence.

"Cost is not the problem – it's a symptom of deeper engineering challenges," Dany emphasizes. This perspective has helped Etsy achieve remarkable results, including reducing storage costs below levels from two years ago by aligning data lifecycles with business needs.

Key Insights from Our Conversation

Engineering-First Mindset

The traditional approach to FinOps often focuses on cost-cutting metrics. However, Etsy's approach recognizes that cost inefficiencies usually point to larger engineering opportunities. This shift in perspective has allowed their teams to address root causes rather than symptoms, leading to more sustainable improvements in both performance and cost efficiency.

Trust and Visibility in Engineering Culture

One of the most striking aspects of Etsy's approach is their trust in their engineering culture. Rather than implementing strict cost control policies, they focus on providing visibility into resource usage. This transparency naturally drives optimization efforts as engineers better understand the impact of their decisions.

"When engineers have clear visibility into their resource utilization, they make better architectural decisions automatically," Dany explains. This approach maintains focus on innovation while ensuring efficiency.

Data-Driven Performance Optimization

Etsy's success in balancing performance and cost comes from their sophisticated, data-driven approach. By thoroughly understanding customer latency requirements and establishing appropriate thresholds, teams can optimize costs without compromising user experience. This methodical approach ensures that optimization efforts align with business objectives.

Pioneering Sustainable Computing

Perhaps one of the most forward-thinking aspects of Etsy's FinOps journey is their commitment to sustainable computing. Starting with basic energy metrics in 2016, they've evolved to implement a comprehensive CO2-based approach. This initiative demonstrates how environmental responsibility can be seamlessly integrated into FinOps practices while supporting cost optimization goals.

Starting Your FinOps Journey

For organizations looking to enhance their cloud optimization practices, Dany offers several fundamental principles:

  1. Start with basic metrics like cost variance and CPU utilization
  2. Maintain transparent communication across teams
  3. Get comfortable with uncertainty
  4. Set reasonable error margins that allow for natural cost fluctuations

Looking Ahead: The Role of AI and AutomationOur conversation concluded with an exploration of how AI and automation will shape the future of cloud optimization. While specific details about these emerging technologies are evolving rapidly, the fundamental principles of engineering excellence and data-driven decision-making will remain crucial.ConclusionThe conversation with Dany Daya reveals that successful FinOps is about much more than cost reduction. It's about fostering an engineering culture that naturally drives efficiency, sustainability, and innovation. By focusing on engineering excellence rather than pure cost metrics, organizations can build more sustainable and efficient cloud operations that support long-term business growth.

Was this content helpful?

Thank you for submitting your feedback.
Oops! Something went wrong while submitting the form.