‍

Cloud spending is forecasted to reach over $330 billion by 2022. Organizations and their finance teams no longer continue to stick to their traditional financial and procurement practices. 

Some of the significant cloud finance challenges that organizations run into are:

- Your cloud spend is higher than expected

- Your license and services spend is higher than you can control

- Your cost-benefit is shifting

This is precisely where FinOps comes into the picture.

What is FinOps?

FinOps is a transformational cloud framework that brings technology, finance, operations, and business together to drive financial accountability and accelerate business value realization. This introduces a whole new way company looks at the cloud. 

FinOps breaks down organizational silos. An ideal organization is where different teams work together to reduce cloud waste. The four principles that make FinOps work are :

Visibility

This means identifying organizational units and mapping them to their cloud resources while preserving historical data for further trend analysis.‍

Optimization

With FinOps, you can have the best results for cloud optimization. An organization needs to constantly work on its culture to keep this factor going up. The most critical factor in establishing an intelligent resource consumption process is to make the internal processes more streamlined.‍

Control 

With FinOps adoption, you get control over your optimization needs. You need to create a separate budget for each team, assign an owner to a specific budget, set TTL rules, create a cleanup script and educate your team. 

Collaboration

The fourth principle of FinOps is collaboration. Proper use and optimization of the cloud require you to have efficient collaboration. Interacting with teams of engineering amongst different departments helps you to have a cross-functional collaboration.

Understanding and providing real-time data and visibility on your cloud spend will also help them understand the implications and make better decisions.

Scope and Opportunities

The increasing scope of FinOps lies in the fact that it helps you deliver maximum business value. It is best for the organization when decisions are made according to the business perspective. FinOps, when rooted in your organization, ensure revenue-driving, investments, and more.

How can you maximize your cloud investment through FinOps?

There are multiple ways you can use FinOps to enhance your cloud investment. Let’s look at these advantages below: 

- Improved Decision Making

- Tracking of Decisions and their impact

- Empowered product teams

In all, streamlining the IT infrastructure of your company with FinOps will ensure cost reduction, especially of how well the cloud cost policy is being adhered to and give maximum output. 

As experts from the field, we at Cogent Infotech can help your organization get the most value from your cloud. If you need any further information/help, please get in touch with us today.