Swimming with the Sharks@FinOps
“Pay as you go” “Lower IT costs” “No upfront hardware and software purchases”
These were the phrases that attracted lot of companies to cloud however post adoption they felt a steep rise in price instead of savings as expected.
Was this a trip we call swimming with the sharks?.. or was it lack of swimming experience?..
Here’s my understanding on what went wrong…
The key to these commonly growing issue with most of the companies is in cloud cost management and cloud governance. For more details around cloud governance pls refer to my previous blog; In this I would try and explain cloud cost management/ FinOps
What is FinOps and why is it important?
FinOps, short for Financial Operations, is the practice of managing the financial aspects of a business that uses cloud services. It involves optimizing the cost, usage, and performance of cloud resources to ensure that a company is getting the most value from its investment in cloud services.
In the past, IT and finance teams operated independently of each other, with IT focused on delivering new technologies and services and finance focused on controlling costs. However, as companies increasingly adopt cloud services, the lines between IT and finance have blurred, making it necessary for these teams to work together to manage the financial aspects of cloud services.
This is where FinOps comes in. It brings together IT and finance teams to collaborate on cloud service management, allowing them to optimize costs and usage while also ensuring that the business is getting the most value from its investment in cloud services.
FinOps also helps companies to monitor the cost of the resources they are using. With the rise of cloud computing, it's easy to get lost in the pay-as-you-go pricing structure, and end up spending more than you need to. By implementing FinOps practices, you can be sure to keep an eye on your costs and take action if they start to get out of hand
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By implementing FinOps practices, companies can ensure that they are getting the most value from their investment in cloud services while also controlling costs and managing usage.
There are several guidelines on how to implement or adopt FinOps. Some of the key practices of FinOps include:
The recipe to success of adopting FinOps is in creating tailored KPI's for the organization. It is important to track and analyze these KPIs on regular basis to ensure that the FinOps practices are having the desired effect and that the company is getting the most value from its investment in cloud services
Overall, FinOps is an essential practice for any company that uses cloud services. It allows IT and finance teams to collaborate on cloud service management, optimizing costs and usage while also ensuring that the business is getting the most value from its investment in cloud services.
Please let me know if you have any specific question or if you want me to elaborate on some specific aspect of FinOps.
Thank you for sharing
It's a great article. Cloud cost management is crucial to ensuring that an organization is maximizing the benefits of cloud computing while minimizing waste and unnecessary spending. Cloud computing can offer many benefits, such as increased flexibility and scalability, but it can also come with significant costs if not managed properly. To effectively manage cloud costs, it is important to follow the principles you've rightly highlighted. It's vital to plan ahead and establish clear cost governance policies and ensure that they are being followed.