Introduction to FinOps
Moving towards consumption-based spending in the cloud, organizations are facing a transformation of their financial operating models.
The solution is FinOps – the operating model for the cloud that enables a shift; a combination of systems, best practices and culture in order to increase an organization’s ability to understand cloud costs and make tradeoffs.
Just like DevOps revolutionized development by breaking down silos and increasing agility, FinOps increases the business value of cloud by bringing together technology, business and finance professionals with a new set of processes.
Bringing financial accountability to the table, companies don’t have to wander in the dark anymore. Inhouse IT, finance and business teams are enabled to tune cloud costs and reduce unnecessary spending. You can make decisions and put them into action quickly, and speed is important.
FinOps could also be described as a “compound cost optimization,” as it is crucial when you migrate more computing functions from fixed-cost data centers to variable, consumption-based clouds. The market for public cloud services is growing with a rate of 16,6% per year and by 2022 it will top $360 billion, according to Gartner. Within this market, there remains a lot of waste of precious IT budgets and resource utilization. FinOps is the solution for these challenges.
The FinOps Foundation facilitates a community with access to the most transformational networking and sharing of FinOps best practices.
The FinOps journey consists of three iterative phases:
- Inform – empowering organizations and teams with visibility, allocation, benchmarking, budgeting and forecasting
- Optimize – once organizations and teams are empowered, they start to optimize their cloud footprint
- Operate – start to continuously evaluate business objectives and the metrics aligned with speed, quality and cost
How is Cloudvane helping you?
One of the main Cloudvane features is cost analysis, backed up with reporting and automation. With the tool you can tell and how your consumption compares to your commitment amount. Using trend lines to understand spending patters you can reallocate your funds and reduce overall cost.