What Is FinOps?

FinOps - short for financial operations - is a game-changer. It's not just about crunching numbers; it's a mindset that brings finance, business, and technology teams together.

Here's how it works:

• • Visibility: Understand your spend at a granular level. Identify where resources are allocated and where optimizations are possible
• • Governance: Set policies and guidelines to ensure efficient resource utilization.
• • Forecasting: Predict future costs and plan accordingly.
• • Optimization: Continuously fine-tune your cloud usage to maximize value.

IT Savings: Fueling Innovation

In today's dynamic business landscape, every dollar saved matters. IT Savings isn't just about cost reduction; it's about creating opportunities for innovation. By optimizing your cloud spend, you can allocate resources strategically, fund new digital initiatives, and drive value creation.

FinOps: Bridging Finance and IT

Applying FinOps Principles

• • Visibility: Understand your entire IT spend, including hardware, software, and services. Use tools to track costs.
• • Governance: Set policies for IT spending. Define who can provision resources and under what conditions.
• • Budgeting and Forecasting: Create IT budgets aligned with business goals. Forecast future costs based on usage trends.
• • Optimization: Continuously review and optimize IT resources. Eliminate waste, right-size infrastructure, and automate processes.
• • Collaboration: Involve finance, IT, and business teams. Ensure everyone understands the financial impact of technology decisions.

Avoiding Common Pitfalls

• Delaying FinOps Implementation: Waiting until your annual cloud spend hits $1 million before establishing mature FinOps practices is a costly mistake. Start early - even before embarking on your cloud journey. The longer you wait, the harder it becomes to shift from a data center mindset to a cloud-first approach.
• Business Leaders' Engagement: Cloud isn't just an IT project; it's a business enabler. Waiting for cloud program costs to exceed $1 million before involving business leaders (CFOs, procurement officers, and business unit heads) is too late. Their engagement from the start is crucial.
• Silos: Break down silos between IT and finance. Collaboration is key.
• Reactive Cost Management: Don't wait for budget overruns. Proactively manage costs.
• Ignoring Legacy Systems: Legacy infrastructure can be costly. Assess its value and plan for modernization.

Reach out to DE Solutions to help with your FinOps Strategy Contact Us