Driving success with FinOps: Optimising cloud costs to drive value

With the economic climate changing quickly, global companies increasingly face financial crises and have difficulties keeping their costs under control. While cloud computing brings enormous benefits across industries worldwide, according to a recent survey of 753 business leaders, more than 80% of respondents emphasise that managing cloud spend is the biggest challenge they still need to overcome. 

These companies lack a well-executed cloud strategy that will provide them with financial resilience, enable them to reduce unnecessary cloud expenses, and optimise operational expenses while simultaneously setting the ground for continuous innovation, growth, and the development of new services. 

We have been saying it for years — moving to the cloud is simply not enough. To achieve full cloud value, businesses must shift their mindsets and make necessary changes when it comes to their financial management practices. 

One of the best strategies companies should implement to turn this vision into reality is FinOps. 

What is FinOps?

FinOps is a combination of two key terms DevOps and Finance. It is a framework that combines people, technology, and processes to optimise financial performance of organisations’ cloud computing infrastructures and drive financial awareness and accountability. The key goal is to leverage the synergy of technology, business leaders, and engineering experts to drive the maximum business potential of the cloud. It is a cultural shift that promotes shared responsibility for cloud expenditures across different teams in the organisation. Here are the the key goals of FinOps:

  • Drive better business value
  • Optimise financial operations 
  • Help businesses make the most of their resources
  • Help companies manage their cloud costs effectively 
  • Improve decision making 
  • Continously enhance financial workflows across the organisation 
  • Align cloud expenditures with specific business goals

Five building blocks of FinOps

From implementing effective cost governance to making quick fixes to reduce cloud spending, FinOps can help businesses build a cost-effective strategy through these five pillars:

Tools

Businesses can track and effectively manage their cloud spending with tools designed specifically for managing cloud costs. 

Planning and forecasting 

Businesses can modernise budgeting and forecasting to enable innovative cost-effective development practices. 

Cost optimisation 

Providing recommendations on IT resource usage and methods for improved financial visibility to optimise cloud spending. 

Measurement 

Defining a set of KPIs and success metrics to drive financial accountability and realise value from the cloud. 

Accountability 

Defining key policies and establishing governance to manage cloud spend. 

Four key objectives oganisations should pursue with FinOps

Driving success with FinOps: Optimising cloud costs to drive value

Regardless of the approach you decide to take to build up FinOps capabilities, you should focus on these five critical goals on your FinOps journey:

Increase ownership: Build a culture of financial responsibility. Track and report data on your cloud spending to ensure that the people who manage it are accountable for it. 

Improve monitoring and reporting: Create data optimisation pipelines for cloud optimisation metrics, automatisation of controls, and leverage machine learning and human oversight to detect irregularities and find opportunities. 

Improve cost predictability: Plan and track cost metrics to optimise cloud resource use and use financial modelling powered by machine learning through loud providers to predict costs better. 

Enhance governance efficiency. Create a list of specific policies to make sure the provisioning of cloud services is governed. 

How to optimise cloud costs with FinOps?

Cloud FinOps practices do not allow you only to take responsibility for your cloud costs but also optimise them, allowing businesses to make data-informed decisions. Let’s explore some of the key FinOps cloud cost optimisation techniques:

Pay for the cloud resources you want to use

One of the best ways to optimise your cloud spending is to rightsize your cloud resources and make sure you pay for the resources you are actually using. While this may sound easy to accomplish, it can actually be surprisingly challenging if you are not using the right tools. 

Remove idle resources

There are many reasons why idle resources may occur. Whatever the reason, removing idle resources can help decrease unnecessary cloud spending. 

Leverage billing tools

How can your team know how much they are spending on cloud if they cannot see the numbers?

Utilise billing tools to have a clear overview of your cloud spending. Use the tools offered by cloud providers to gain visibility into budgets, spend and costs and drive better forecasts and results in future. 

How can Deployflow help accelerate your Cloud FinOps journey?

Deployflow’s FinOps approach focuses on three key areas:

  1. We help you plan your cloud strategy to find the best cloud environment and platform for your operations.
  2. We measure usage and costs, report the results, and analyze those results to uncover opportunities for improvement.
  3. We implement these insights to optimize your cloud environment, enhancing performance and reducing costs. 

Implementing a FinOps model requires time and expertise many organisations might not readily have available. Deployflow’s specialists possess deep knowledge and experience with cloud providers, products, and services and have a proven track record in developing and implementing tailored cloud financial management strategies. Through our work, we have created an effective roadmap for transitioning to a FinOps model and identifying and eliminating excess costs in existing cloud environments.

When engaged, Deployflow professionals can quickly assess your cloud footprint and identify immediate cost-reduction opportunities. We also assist in implementing these recommendations and driving further savings through broader operational enhancements over time.

Explore Deployflow cloud consulting services to see how we can help you maximise your cloud investment—interested in partnering with Deployflow to develop your cloud optimisation strategy? Reach out to our team of experts.


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maya.budinski

Published on June 21, 2024