Highlights from the State of FinOps 2024 Report

The latest State of FinOps report was unveiled during the FinOps Summit yesterday. The 2024 report unveils significant changes, reflecting the broader economic landscape and the adaptive strategies of organizations to navigate through uncertainties.

Additionally, the report sheds light on other critical areas such as forecasting, automation, AI costs, and sustainability, suggesting a broadening scope of FinOps practices to include forward-looking and technologically advanced considerations​​.

2023: A Retrospective Look

Reflecting on the 2023 State of FinOps report, we observe a concentration on tooling, reporting clarity, and cloud sustainability. The report emphasized the essential role of collaborative culture over mere tool adoption, highlighting the importance of understanding the ‘why’ behind tool usage. It also marked a significant progression in clarifying reporting lines within FinOps practices, indicating a move towards a more integrated approach involving IT, finance, business, and procurement departments. Cloud sustainability emerged as a natural extension of FinOps, aligning operational efficiency with environmental goals​​.

Challenges and Cultural Shifts

The report continues to underscore the ongoing challenge of bridging the gap between providing insights and encouraging actionable steps among engineers​​.

Evolving Community and Corporate Engagement

The 2024 report reflects not only changes in operational focus but also an expanding FinOps community and corporate engagement. The participation of major cloud service providers, such as Microsoft joining the FinOps Foundation, signifies a growing recognition of FinOps practices as essential for cloud cost management. This expansion underscores the increasing relevance of FinOps in the broader IT and business landscapes​​.

Conclusion

The contrast between the 2024 and 2023 State of FinOps reports illustrates a dynamic field that is rapidly adapting to economic pressures, technological advancements, and sustainability goals. The shift towards prioritizing waste reduction and commitment management in 2024, from the tooling and collaborative culture focus in 2023, highlights the FinOps community’s response to immediate economic challenges while still aiming for long-term operational and environmental sustainability.

These insights not only offer a roadmap for organizations navigating the complexities of cloud financial management but also underscore the critical role of cultural shifts, community engagement, and corporate participation in advancing FinOps practices.

As the FinOps landscape continues to evolve, these annual reports serve as vital benchmarks for the community, offering a reflective and forward-looking view on how to navigate the complexities of cloud finance with agility, foresight, and a commitment to sustainability.