In today’s digital landscape, cloud computing has become an integral part of business operations, offering scalability, flexibility, and cost-efficiency. However, effectively managing cloud spending and optimizing costs can be challenging, especially for companies with dynamic and complex cloud environments. This is where FinOps comes into play.
According to McKinsey, in 2020, the pace of cloud migration accelerated by a factor of 24. This indicates a large area of spending that requires careful management. In this blog, we introduce you to FinOps by exploring the key practices that can be implemented using the FinOps framework. For more in-depth information and practical guides, we recommend visiting the FinOps Foundation website.
What is FinOps?
FinOps, short for Financial Operations, is a framework and set of practices designed to manage and optimize cloud costs within organizations. It involves the collaboration between finance, operations, and technology teams to gain better control over cloud spending while ensuring that resources are utilized efficiently to meet business objectives.
So, how do you know if your company needs FinOps? Here are some signs:
Where should you begin with implementing FinOps practices?
Incorporating FinOps practices into your organization’s cloud management strategy can significantly enhance cost optimization and resource efficiency. However, embarking on this journey requires careful planning and strategic implementation. Here are three essential tips to help your company kickstart its FinOps journey effectively:
The takeaway
FinOps is essential for organizations looking to maximize the value of their cloud investments. However, don’t prioritize saving money over getting the most out of what you spend. In FinOps, it’s about balancing cost savings with what you gain. For example, you might choose to use a free trial to save money or pay for a plan sooner to access more features. It depends on what’s best for your situation. Finally, to start building the right infrastructure for FinOps in your enterprise, seek out the right resources and find professionals who have gathered some experience in the field.