The Collaborative Cloud Financial Management Practice
Discover FinOps, a set of standards and best practices developed to help cloud practitioners manage and optimize the variable economics of cloud to drive collaboration, informed decision-making, and value.
Control costs and deliver business value
Cloud financial management, also known as FinOps, enables you and your team to bring financial accountability to the variable spend model of cloud. By establishing a FinOps practice, distributed IT, finance and business teams are brought together to continuously fine tune cloud deployments to align to key business objectives, like speed, cost and quality.
Apptio is a proud member of the FinOps Foundation, a community of experts and cloud practitioners working to develop and maintain the standards for the cloud financial management practices. Learn more about this community and join their network at finops.org.
Financial Management for your Cloud Journey
The FinOps framework consists of three iterative phases — Inform, Optimize, Operate.
- Inform delivers cost visibility for all stakeholders by allocating fully burdened cloud costs back to the business and focuses on enabling team ownership of cloud spend with the goal of achieving financial accountability.
- Optimize is focused on reducing cloud costs by making intelligent decisions about resource usage and through effective use of financial levers to lower rates.
- Operate refines those shared IT, finance and business goals to focus and scale operational efforts through continuous improvement.
Three Phases of the FinOps Framework
Understand Fully Loaded Costs
- Visibility into IT spend
- Granular cost allocation
- Team-level budgets & tracking
- Trending & variance analysis
- Internal team benchmarking
- Industry peer-level benchmarking
Real-Time Decision Making
- Remove underutilized services
- Automation of resources
- Understand if resources are under or over-provisioned
Predict, Plan & Purchase Capacity
- Rightsizing instances & services
- Centralized RI buying process
- Comparing pricing
IT, Finance, & Lob Collaboration
- Finance moves at the speed of IT
- Continuously improve for efficiency & innovation
- Defined governance & controls for cloud usage
FinOps is the operating model for the cloud — a combination of systems, best practices, and culture to increase an organization’s ability to understand cloud costs and make tradeoffs.
Check out this poster for a brief introduction into the principles, phases, and domains that comprise a FinOps practice.
The phases are designed to provide a foundation for organizations to effectively manage cloud spend while still balancing business needs – maximizing the value they can generate from their cloud strategy. Cloudability was designed upon the same principles, uniquely tailored to support cloud financial management of multi-cloud, hybrid cloud, and SaaS ecosystems.
Interested in learning more? Start a free trial today and see first-hand how Cloudability can help you achieve your cloud goals.