Cross-functional cloud cost management is the key to success
Is a dedicated financial operations (FinOps) team the answer to cloud cost governance? Many organizations advocate for this approach, but in fact, Gartner notes that, "Executive leaders should sponsor a cloud operating model that implements a cross-functional cloud economics practice that encompasses the three key IT finance pillars of IT financial management, cost management and demonstrating the business value of IT. Cloud financial operations (FinOps) is only part of what is necessary to ensure that the organization maximizes the business value it receives from its cloud expenditures."
According to Gartner, "operationally, cloud cost management is a process that is part of an ongoing life cycle, driven by monthly cloud provider billing." The report also states that, "a well-defined cloud cost governance model enables cloud stakeholders to own their cloud costs and manage the trade-offs between increased cloud costs and an improved customer experience (CX) through greater feature velocity or better response times."
Another element of this necessary shift to cross-functional activity is for IT executives to make cloud economics a cultural imperative, one that establishes accountability across teams — especially the teams most likely to accrue cloud costs.
Download this complimentary Gartner Report to discover if FinOps really is the answer to cloud cost governance and uncover:
- How IT executives can drive business priorities that make cloud cost governance a priority
- How to minimize wasteful use of cloud resources
- Why it’s critical to balance cost-optimization with adding new application capabilities
...and more.