The cloud has revolutionized the way we work . Cloud Computing in all sectors offers flexibility, scalability and agility to companies in all sectors and more and more are making the migration. However, managing the performance and costs of cloud resources is also a challenge.
The FinOps methodology emerged in response to the need to optimize the use of the cloud without compromising the quality of the service offered by each company, aligning financial objectives with technical ones.
What is FinOps?
The FinOps concept arises from combining the terms Finance and DevOps . It consists of a methodology that highlights the need for engineering, business and finance teams to be on the same page and collaborate to obtain maximum performance and functionality from the possibilities offered by the cloud. The objective is that the best decisions can be made about the spending and investment made in the cloud based on reliable data and information available to all teams involved.
Public spending on software development services like Cloud services has had exponential growth in recent years. However, it is easy to fall into the trap of waste and invest more money than is necessary, or not take advantage of cloud services to their full potential. Avoiding these unnecessary expenses and optimizing the use of the cloud is the reason why FinOps was born.
It is about offering a complete view of the Cloud services that are being consumed in the cloud and achieving complete collaboration between departments to obtain maximum performance from these services.
What are FinOps services?
FinOps is a relatively new methodology so many companies, although they know the importance of implementing it, are not very clear about how to start doing it. This is when FinOps services come into play from agencies, specialized consultancies or the FinOps tools and solutions providers themselves, who advise companies and provide support so that they can begin to adopt FinOps practices.
FinOps services typically include:
- A general assessment that determines the level at which the organization is, or is not, currently implementing FinOps.
- Identification of the company's FinOps strengths and weaknesses.
- Design a FinOps strategy tailored to the company, based on its needs and the financial and cloud investment objectives it may have.
- Implementation and support during the transition to said strategy.
- Training services so that all members of the different teams involved know how the FinOps strategy works and transmit the FinOps culture.
- On many occasions, technical and financial assistance is also offered , as well as continuous monitoring of the project to guarantee its successful implementation.
When a company contracts FinOps services, the main benefit is the increase in the quality of custom software development services like cloud services and better performance. However, this also leads to other advantages, such as obtaining better transparency and visibility about the expenses that are being made in the cloud, speeding up the delivery of products, thanks to the increase in development speed or the reduction of costs. unnecessary .
The pillars of FinOps
Now that you know what FinOps is and how it can help your company, you are surely curious to know what exactly the FinOps culture and methodology consists of.
The FinOps Foundation has established 6 basic principles that would allow the FinOps methodology to be implemented. These principles must be implemented continuously, without an established hierarchy.
- Collaboration between teams . Teamwork and communication between different departments is crucial for the FinOps methodology to be effective. This collaboration is what allows us to design and implement different strategies effectively and obtain results. The objective is to find the perfect balance between the needs of the engineering team and those of the finance team, thus controlling costs without losing efficiency.
- Consumer responsibility . Each team must be transparent and take responsibility for their cloud consumption. It is necessary for the different work teams to consume responsibly and efficiently, taking into account global needs as well as the budget limit. To achieve this, team rather than individual goals are often set.
- Centralized leadership . Although the entire organization must participate and follow the FinOps methodology, the process must have a team that leads it, which is capable of evaluating providers and cloud services, as well as detecting possible discounts applicable to the project. This team will also be responsible for making any purchases.
- Clear reports . For FinOps to be successful, it is very important that teams have the ability to predict the needs for cloud services that will be necessary, understand the workflow and appropriately distribute all resources. And for this to be possible, the reports must be as clear and punctual as possible.
- The value of the cloud drives decisions . The goal of FinOps is not just the reduction of unnecessary expenses. It is a methodology aimed at increasing and maximizing the value of the organization. In this sense, it will be necessary to use tools that allow analyzing the increase in costs and establishing performance indicators. The value that the cloud brings at the business level will be key to making decisions.
- Leveraging costs . Cloud platforms and solutions offer many possibilities for scalable services, allowing the contracted services and solutions to be adjusted exactly to the needs of the company. It is part of FinOps to analyze, compare and adjust the acquisition of these cloud services, maximizing cost and minimizing waste.
Using the FinOps methodology , companies like custom software development company and other businesses are able to take full advantage of the advantages offered by the cloud, ensuring that financial and technical aspects are aligned.
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