The words ‘cloud cost optimisation’ may be enough to make any CFO and CIO’s heart skip a beat in a world where every organisation is using cloud, or in most cases, multiple clouds. Cloud promises to be more agile, accelerate scalability, improve productivity and achieve business goals, however, in reality it also presents many challenges, one of the most prominent of which is financial management and governance. To avoid experiencing bill shock and maximise your investment in cloud, it’s important to understand new trends in cloud consumption.
This blog presents our top 6 trends and predictions for FinOps in 2023 and explains why this framework is a must-have for enterprises that want to avoid unnecessary cloud sprawl.
1. FinOps to top cloud initiatives list again, for the 7th year running
The cloud has become a vital tool in many industries as companies continue to pursue digital transformation in an effort to improve reliability, modernise environments and support new work models.
Short for financial operations, FinOps is an operating framework designed to accelerate business value and drive financial accountability by increasing organisation’s ability to understand cloud costs and make smarter, result-based decisions. Far from being a buzzword, the fundamental premise behind FinOps is to help enterprises make the most optimal investment decision by bringing technology, finance and business together and embrace more economically efficient cloud models.
As economic uncertainty continues to build and organisational cloud wastage exceeds 30%, cloud cost optimisation will present a quick win scenario to organisations who are looking to reduce costs, fund other critical initiatives such as security, and increase profitability.