FinOps — Why or Why Not?

FinOps has become increasingly important in recent years as businesses have moved more and more of their workloads to the cloud. Cloud computing offers a number of advantages, such as scalability, flexibility, and cost savings. However, it can also be complex to manage and costs can quickly spiral out of control if not managed carefully.

FinOps is a framework that helps businesses manage their cloud costs effectively. It is a collaborative approach that involves finance, engineering, and product teams working together to understand, optimize, and forecast cloud costs.

There are a number of reasons why FinOps has become so important:

• Cloud costs are increasing: Cloud spending is growing at a rapid pace. According to Gartner, global cloud spending is expected to reach $591.8 billion in 2025.
• Cloud costs are complex: Cloud costs can be difficult to understand and manage. There are a variety of factors that can contribute to cloud costs, such as compute resources, storage, networking, and software licenses.
• Cloud costs can be wasted: Businesses can waste a significant amount of money on cloud costs if they are not managed carefully. For example, businesses may be overpaying for resources that they are not using, or they may be using the wrong resources for their workloads.
• Improved visibility into cloud costs: FinOps can help businesses to gain greater visibility into their cloud costs. This can help businesses to identify areas where they can save money.
• Reduced risk: FinOps can help businesses to reduce the risk of cloud cost overruns.
• Improved compliance: FinOps can help businesses to comply with cloud governance and compliance requirements.
• Increased agility: FinOps can help businesses to be more agile in their cloud usage. This can help businesses to respond quickly to changing market conditions.

FinOps can help businesses to overcome these challenges and manage their cloud costs effectively. By implementing FinOps practices, businesses can:

• Reduce cloud costs: FinOps can help businesses to identify and eliminate wasted cloud spending.
• Improve cloud efficiency: FinOps can help businesses to optimize their cloud resources and use them more efficiently.
• Forecast cloud costs: FinOps can help businesses to forecast their cloud costs more accurately.
• Improve cloud governance: FinOps can help businesses to establish and enforce cloud governance policies and procedures.

Overall, FinOps is a valuable tool for businesses that want to manage their cloud costs effectively. By implementing FinOps practices, businesses can reduce costs, improve efficiency, and forecast costs more accurately.

FinOps can help you to save money, improve efficiency, and reduce risk.