As a managed service provider (MSP), reseller, or consultant, your customers rely on your expertise in all things cloud. But they need more than the right technology to receive a return on their cloud investment. Customers require a holistic approach to their cloud financial management to use their cloud budgets efficiently, continually optimize cloud spend, and drive the business value of the cloud over time.
What can you provide for your customers to help them optimize costs, standardize operations across the organization, and drive better business decisions at every step of their cloud journey?
The answer is FinOps.
What Is FinOps?
FinOps, short for Cloud Financial Operations, is a practice that combines data, organization, and culture to help companies manage their cloud spend.
More than simply managing and monitoring costs, FinOps takes a holistic view of the cloud’s business value tied in with an organization’s objectives. An effective FinOps practice aligns advanced cost management metrics with business metrics to help companies manage their cloud spend. These metrics may include:
- revenue and profit
- development schedules, requirements, and costs
- business units and operations
- growth projections
- other long-term analysis
Another key difference lies in who is involved in this practice. Day-to-day cloud cost management may fall squarely on the shoulders of DevOps engineers, cloud architects, and other technical personnel. FinOps, on the other hand, gathers stakeholders from the C-suite as well as leaders across technology, finance, and business to examine the data and make informed decisions that tie cloud usage to the objectives of the business.
As cloud costs become an increasingly material expense, FinOps is gaining momentum as a critical function and program within organizations. Anyone can potentially implement FinOps. Yet although it’s starting to gain traction, many IT organizations haven’t started down the FinOps journey yet. It’s not because they don’t have the need, but often because they may not yet understand the value of FinOps or have the skills to implement it.
This presents an opportunity for MSPs to lead the way.