Financial operations, or FinOps, emphasizes managing operating expenditures in the cloud. FinOps bridges the gap in financial accountability for distributed or cross-functional teams within the same organization.
Why adopt FinOps?
Managing cloud cost remains the top concern for most companies, and cloud spending accelerates during business disruptions. Companies across the globe strive to control costs despite accelerating their cloud strategies, especially in turbulent economic conditions.
Cloud spending is variable in nature, and it is imperative to adopt a holistic approach to financial management to make trade-offs between cost, quality, and speed.
How does FinOps work?
The FinOps foundation provides three iterative phases to manage the variable costs of cloud services. At a particular time, an organization may be in multiple phases, depending on the business team or application. The three phases are:
The first phase starts with people. Communicate and provide visibility into the operations, such as how much the organization is spending and earning, then allocate, benchmark, and forecast the cloud service needs for shared accountability.
Optimizing the cloud footprint is imperative in the FinOps journey. This phase deals with the real-time capacity for decision-making by utilizing options like on-demand cloud capacity, removing underutilized resources, or automating the resources. Organizations can leverage these options by rightsizing the capacity to eliminate unnecessary spending.
Organizations need to continuously assess cloud service performance against the operational objectives based on speed, cost, and quality. This includes the use of the right tools and platforms to enable teams to get the job done efficiently.
Plan, budget, and predict expenditure requirements for cloud usage by leveraging CloudSpend, our in-house cloud cost management tool and expedite your FinOps journey.