FinOps in the Datacenter: Meta’s Approach to Infrastructure Optimization and ROI-Driven Decision Making

Meta has driven the integration of Operational Expenditure (OpEx) as a key metric for managing and optimizing the cost of running one of the largest private clouds in the world (the Datacenter that runs all the apps we use daily: Facebook, Instagram, What’s App). This talk will delve into Meta’s journey of establishing OpEx as a cornerstone for return on investment (ROI) driven decision making, and how they operate their private cloud like a Data Center using FinOps best practices, capabilities, and principles.

We will explore the comprehensive methodology behind calculating OpEx per resource, encompassing depreciation, variable, and fixed overheads. By attributing Meta’s total on-premises infrastructure expenses to each physical and virtual resource, we have developed a robust cost estimation model that informs our strategic planning and budgeting processes.

OpEx has empowered Meta to make informed ROI decisions across the organization. A case in point is Instagram Business, which leverages OpEx to identify projects with optimal ROI and serves as the currency for budgeting, resource allocation, deployment, and end-of-half ROI calculations, with insights feeding into the optimization of subsequent planning cycles. Furthermore, OpEx is integral in driving our org wide Efficiency initiatives.

Join us as we share Meta’s innovative use of OpEx to drive strategic planning and operational efficiency.

Speakers

Amit Mookerjee

Product Leader at Meta

Lu Zhang

Performance and Capacity Engineer at Meta