Recently, organizations have witnessed a massive shift in their structures and operations. It has become important for businesses to streamline their operations, finance, and technology to enhance business value and accelerate transformation.
Cloud FinOps plays an integral role in translating businesses’ challenges from operating as silos to opportunities to increase experiences. It is the foundation for change management. Let’s discuss Cloud FinOps and its benefits to businesses.
What is Cloud FinOps?
Cloud FinOps is a framework that collaborates technology and finance to enhance business culture and transform operations. This framework helps enhance financial accountability within the business by streamlining all aspects of accounts and finance. It accelerates transformation and offers better value to businesses. It is, however, important to hire a DevOps consulting firm to identify the best strategies and practices to implement the Cloud FinOps.
Benefits of Cloud FinOps
The question remains: why you should adopt cloud FinOps for your business transformation? Here, we will take you through the benefits of adopting the Cloud FinOps framework.
Helps Take Informed Decisions
As a business, you might take an instant and uninformed decision that can prove to be risky. As a result, you end up spending more on the cloud. You can avoid this by monitoring your cloud resources and identifying the requirements.
Cloud FinOps offers real-time insights into your enterprise’s cloud resources and how to utilize them. It helps identify the resource requirements for your business and allocate them properly.
This will give you a clear understanding of the cloud services you need, the amount you spend, and the returns you will get. As a result, you will prevent your business from overspending or taking decisions that aren’t backed by solid data.
Bring Cultural Transformation
When you operate in the cloud, understanding resource utilization and overall spending is necessary. It is important for businesses to study the data and identify the best practices to consume cloud and enhance operations. Migrating to the cloud could be challenging. Several businesses miss out on the opportunity because they don’t implement risk mitigation best practices. They also miss out on the best practices to implement cloud operations to transform organization-level functions.
As a result, the resource management teams face difficulty managing, allocating, and enhancing the cost-effectiveness of the resources. This, in turn, leads to overspending and under utilization of the resources as they are not aligned with your cloud goals.
A cultural shift is important when implementing the cloud. With cloud FinOps, businesses can manage their cloud consumption and align it to the business culture to gain maximum opportunities.
Build a Harmonious Ecosystem
When you implement cloud FinOps in your organization, you are bringing together the different facets of your organization. It improves the collaboration between finance, IT, DevOps, Engineering, and other important teams. As a result, you will observe a smooth flow of data and resources between these teams.
This seamless collaboration is essential because when they operate in silos, each team has a different process that the others are unaware of. When data or resource is exchanged, documentation and chaos follow. With the right implementation by an expert DevOps consulting firm, you can make the ecosystem harmonious and enable the teams to co-exist.
Aligned to Business Goals
What makes a business succeed? When all the departments and verticals within the organization work toward achieving a single goal, the business succeeds.
In the pre-cloud world, the operations were driven by individual processes. No two teams shared the same goal. As a result, the returns and outcomes were impacted.
That’s not the case with Cloud FinOps. This framework ensures that the business has a distinct mission and vision. The facets of the business are aligned with this vision and mission.
Cloud FinOps helps businesses identify the financial implications of moving to the cloud and make it more cost-effective.
The Pillars of Cloud FinOps
Cloud FinOps helps businesses transform their organizational culture by adopting agility and promoting accountability.
- Accountability: This pillar is important to establish the best practices and governance policies for the cross-functional teams to operate effectively.
- Measurement: This pillar will monitor and measure the KPIs that impact the business value to optimize the cost and ensure that the unit economics is calculated using the cost per transaction metric.
- Planning: This pillar considers the factors that impact cost, improve spend allocation, and enhance the efficiency of benchmarks for better value creation.
- Tools: This pillar will help implement the right tools and accelerators to manage business value measurement, track cloud spending, and improve cost data.
- Optimizing the Cost: This pillar proactively allocates the resources, identifies methods for price optimization, and enhances cloud consumption patterns.
Final Say…
Cloud FinOps is a framework that can improve cloud utilization, resource allocation, and overall spending. Beyond being an implementation framework, it helps businesses transform themselves completely. It streamlines the operations and induces cultural change that can enhance the results.
