Transitioning to the cloud means more than just migrating your workloads or building innovative new apps. While it’s a great first step for your organization, it’s just the beginning. To truly maximize the value of your cloud investments requires a fundamental shift in mindset and culture to rethink how your organization operates when imbued with technology. By Eric Lam and Pathik Sharma.
There are five core building blocks of Cloud FinOps:
- Accountability and enablement: Sets up a cross-functional team, standards, and enablement for managing cloud spend at scale
- Measurement and realization: Promotes cost transparency, using KPIs and value metrics to drive success
- Cost optimization: Drives continuous cost optimization effort focusing on resources, pricing, and architecture on cloud
- Planning and forecasting: Modernizes budgeting, allocation, forecasting, and chargeback methods to allow for cost effective development practices
- Tools and accelerators: Enables data-driven business decisions with near real-time cost reporting, automation, and tool integration
Cloud FinOps is an operational framework and cultural shift that brings technology, finance, and business together to drive financial accountability and accelerate business value realization through cloud transformation. Said differently, it’s a culture shift that promotes cost consciousness and agility in the cloud. Contrary to popular belief, Cloud FinOps isn’t just a practice in saving money. Rather, it’s about getting the most value out of the cloud to drive efficient growth. referred to by the FinOps Foundation. Good read!
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