Today, at the Cloud Economic Summit in San Francisco, Cloudability, along with many of the world’s largest cloud consumers, introduced FinOps — a new operating model that brings financial accountability to the variable spend of cloud.
FinOps Brings Accountability to Cloud Spend
Cloud consumption has reached a tipping point. It’s scaling rapidly, forcing companies to shift from the fixed cost model associated with the data center to the variable spend model of the cloud. As new research shows, this leaves organizations unprepared to manage cloud spending.
And while the rise of high-speed DevOps teams (ones wielding credit cards and empowered to consume cloud at will) have brought their companies into the digital age, they’ve also created buying centers that have become decentralized and siloed from Finance and Central IT.
Cloudability’s customers, some of the largest and most sophisticated cloud adopters, have blazed a trail to address these challenges and achieve success in the cloud. Those customers, Cloudability and industry leaders have come together to codify these successes into FinOps.
FinOps is a combination of best practices, culture and systems that enable distributed IT, finance and business teams to tune cloud deployments for speed, cost or quality. The FinOps journey consists of three iterative phases — Inform, Optimize, Operate.
Inform delivers visibility for allocation and for creating shared accountability by showing teams what they’re spending and why.
Optimize enables real-time decision-making and predicting, planning and purchasing capacity. This phase empowers teams to take the right optimization actions, such as rightsizing or improving RI coverage based on the company’s goals.
Operate refines those shared IT, finance and business goals to focus and scale operational efforts through continuous improvement.
The FinOps Foundation. Join the movement!
To foster FinOps best practices and market standards, dozens of companies today announced the launch of The FinOps Foundation – a non-profit community organization chartered by the largest and most sophisticated cloud spenders in the world, including Atlassian, Autodesk, HERE Technologies, Just Eat, Nationwide, Gannett and Spotify. Grounded in real-world experience, the FinOps Foundation is focused on codifying and promoting cloud financial management best practices and standards to help the community members and their teams become better at cloud financial management.
Functioning as a hub for the FinOps Foundation and all things FinOps, the FinOps.org website will provide access to cloud economic research, articles, commentary, FinOps success stories, news, events, FinOps training and meetup groups. Launching the FinOps community is a pivotal moment in the industry and Cloudability is thrilled to be part of it.
FinOps has the potential to dramatically change organizations. We want to help you tap into that power, which is why Cloudability is hosting the first ever user conference for FinOps — CloudyCon.
Taking place Sept 10-12, CloudyCon will deliver real world stories, expertise and inspiration for and by FinOps leaders and practitioners – all aimed at helping the community members and their teams become better at cloud financial management. Find out more at CloudyCon.com.
We hope to see you there!
Learn More about FinOps
Read FinOps: A New Approach to Cloud Financial Management for more information about FinOps, including its five guiding principles and the three phases that make up the FinOps journey.