Controlling Cloud Costs with FinOps to Optimize Spending
This widespread increase in cloud operations conveys tangible business benefits, such as increased operational capacity, agility, scalability, and security. Along with those benefits, however, come increased costs and new levels of challenges in managing those costs. Many organizations struggle to manage their cloud spend or even to achieve a clear picture of what they are spending for cloud services or which parts of the company are consuming those cloud resources.
The traditional tactics of managing spending for on-premises IT do not apply to cloud spend. Forecasting for on-premises data centers focuses on ensuring capacity for the long term, and it often results in overprovisioning and overspending. Forecasting for the cloud focuses more on immediate and scalable needs. The flexible concept of capacity that the cloud engenders is leading to a tactical shift and giving rise to a relatively new function for cloud cost management—FinOps, short for financial operations. FinOps is a framework to help companies monitor, manage, and optimize their cloud-based operating expenses.