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FinOps: The art and science of cloud cost optimisation for sustainable growth
Introduction:
The cloud has revolutionized business agility and innovation, but it has also brought a new era of financial complexity. Unmanaged cloud costs can quickly spiral out of control, impacting growth and sustainability efforts. Enter FinOps—a cultural shift, a collaborative practice, and a data-driven discipline that empowers organizations to master their cloud finances. This blog post, inspired by London Tech Week's focus on future-proofing businesses, explores FinOps as a strategic imperative for achieving sustainable cloud growth.
The Cloud Cost Conundrum: A Double-Edged Sword
The cloud, has undeniably transformed the business landscape. Its promise of on-demand scalability, flexibility, and agility has empowered organizations to innovate at an unprecedented pace. However, like a double-edged sword, the cloud's very strengths can also become its Achilles' heel when it comes to cost management.
A recent report by Flexera paints a sobering picture: on average, organizations waste a staggering 30% of their cloud spend. The environmental impact of this waste cannot be ignored.
FinOps Defined: A Cultural Shift, Not Just a Toolset
To reduce costs, organizations are turning to FinOps, a portmanteau of "finance" and "operations." .
At its core, FinOps is about breaking down the silos that traditionally exist between finance, technology, and business teams. FinOps is not a one-time project; it's an ongoing journey of continuous improvement, where organizations strive to optimize their cloud spending while maintaining the agility and innovation that the cloud enables.
The Illusion of "Infinite" Resources: The Perils of Overprovisioning
Overprovisioning is a common pitfall in cloud environments. It's driven by a desire to be prepared for any eventuality, but it often leads to a significant amount of wasted spend.
Gartner estimates that up to 70% of cloud resources are underutilized, highlighting the prevalence of overprovisioning. This not only impacts your bottom line but also contributes to the cloud's environmental footprint.
Hidden Costs Lurking in Your Cloud Bill
When managing your cloud costs, it's crucial to be aware of all potential expenses beyond standard compute and storage charges. Data transfer fees, ancillary services like load balancers, backups, and monitoring can significantly impact your overall cloud spending. Understanding and accounting for these hidden costs is essential for effective cost management and preventing budget overruns.
FinOps as a Green Initiative
FinOps offers a powerful solution to mitigate the cloud's environmental impact by optimizing resource utilization, which reduces energy consumption and carbon emissions. This aligns with sustainability goals and leads to significant cost savings.
VE3: Your FinOps Sherpas
Navigating the complexities of cloud financial management requires expertise and experience. VE3, with its deep understanding of cloud technologies and financial principles, is your trusted partner in this journey.
- A Holistic Approach to Cloud Financial Management: VE3's FinOps approach optimizes cloud investment for business value, considering cost, performance, security, and compliance.
- Expertise Across Cloud Platforms: Our certified cloud experts bring extensive experience across major cloud platforms, including AWS, Azure, and Google Cloud, to help you choose cost-effective solutions.
- Partnering with VE3: Partnering with VE3 provides access to FinOps experts who will help develop a customized roadmap for cloud financial success, establish best practices, implement the right tools and processes, and empower your teams to make data-driven decisions.
Conclusion
FinOps is not a mere trend, but a transformative force that empowers businesses to harness the cloud's full potential while navigating its financial complexities. By embracing FinOps as a strategic imperative, organizations can unlock cost savings, drive efficiency, and foster a more sustainable future.
Join the conversation at London Tech Week 2024 to explore the latest innovations in cloud financial management.
Want to learn more about how VE3 can help you achieve your FinOps goals? We are hosting a FinOps webinar to help you gain more knowledge and take control of your cloud spend. Register now and visit our website for more details.
Author: Madhura Sonegaonkar, Product Marketing, VE3
techUK and TechSkills at London Tech Week
techUK is proud to once again be a strategic partner of London Tech Week. The event is a fantastic showcase for UK tech, and we’re pleased that techUK members and colleagues are represented on the agenda.
We are pleased to be working with 20 techUK members at London Tech Week to highlight the positive impact of the tech industry in the UK.
You can find more details on the author of this blog, below:
London Tech Week: Fringe events
techUK is leading several fringe events across the week on topics as varied as Justice and Emergency Services, Local Public Services, Digital ID, and international trade. Visit the pages below to register:
