Practical reasons for adopting FinOps culture

Diversification has been a common practice in organizations seeking business continuity.

Innovation actions increasingly seek to focus on the distribution of revenue in different products and services, ensuring that the continuity of operations is free from the risks of interruptions caused by possible economic fluctuations.

When we take this scenario to the universe of cloud computing, we find the same need: to diversify.

However, this becomes a more complex action, since the governance of cloud environments requires much more care than just choosing new paths for new revenues.

The main reasons for this boil down to:

  • Cloud environments need to keep up with business needs, allowing them to flow unimpeded to meet demands;

  • The constant evolution of technologies requires IT managers to invest in tools capable of maintaining and monitoring these changes, thus avoiding the obsolescence of environments;

  • The different techniques of workload distribution require the adoption of new practices based on microservices, arranged in containers, which can quickly get out of control;

  • As diferentes ofertas de provedores de cloud causam incertezas na adoção das opções mais aderentes e mais econômicas, gerando impedimentos muitas vezes comprometedores. Observe que este cenário inseguro gera o que normalmente chamamos de descontrole de custos, provocando a retração dos investimentos e bloqueando as inovações que a diversificação obrigatoriamente vai trazer.

And how to avoid this?

The adoption of the FinOps culture (CFM-Cloud Financial Management) is undoubtedly the best option, allowing everything that comes from innovation, even if accompanied by the diversification of products and services, to be fully met without the worry of budget overflow.

In this way, some practical reasons for this adoption validate this statement:

1. Creating a cloud center of Excellence

Known as CCoE (Cloud Center of Excellence), it allows an operation center of cloud environments to be set up and take care of its continuity in accordance with the business rules, pre-established by the governance and compliance area.

2. Squads specializing in cost-based cloud operational management

Cloud environments need a team of cost governance experts who, according to FinOps guidelines, will stay within the budgets outlined, allowing growth to occur in an orderly and, often, previously known way.

3. A culture to follow

The adoption of the FinOps culture is essential for the best practices in cost management to be correctly implemented and administered according to the expectations of the center of Excellence. This ensures that definitions are effectively practiced.

  • FinOps Principles

The correct implementation of the culture begins based on the FinOps principles, which will give the necessary guidelines for the entire management model to be correctly adopted.

  • Key people

The definition of a cohesive team and aligned with the guidelines will be essential for the culture to have the guarantee of execution as it should.

  • Phase

The phases, regardless of the order to be followed, will allow an organization to stay aligned with the steps to be administered, facilitating decision-making regarding control and the optimizations necessary to keep the environment balanced with spending.

  • Domains

Domains are like disciplines that a FinOps squad keeps constantly evolving, making it easy for the necessary changes to happen without preventing business from flowing as it should.

All this makes the organization gain a maturity that remains in constant evolution, allowing innovation, accompanied by the diversification of products and services, not suffer impediments or hinder the new actions that will be promoted internally.

Given this, it is important to emphasize that nothing happens if there are no adequate tools for the management of all this.

The FinOps culture does not exist without a governance framework being configured so that both the architecture of acquisition and use of computational resources and the business metrics that must be followed, are properly demonstrated in dashboards that express in real time the operating scenario of a cloud environment.

And this validates one more reason for the adoption of FinOps culture in an organization: Control.

See what a FinOps framework can provide:

  • Definition of KPIs (key Performance indicators) that will help measure and suggest corrections in real time of scenarios that may put cost management at risk;

  • Billing conferencing of resources, even if multicloud, allowing a precise Conference of what is used with what is charged is always in accordance with reality;

  • Adoption of business metrics with proactive monitoring of compliance, enabling frequent compliance conferences;

  • Evaluation and verification of container costs, allowing the proper distribution of workloads according to the microservice allocation configuration.

Example of an architecture of a FinOps management framework:

The result of combining FinOps practices with the management tool will ensure optimal results in the cost governance of your cloud environments, going beyond economics, providing quick adjustment actions, as business rules require.

This will help ensure that the diversification of products and services in an organization is not hindered by fears of acquisition and use of cloud computing resources.

Adopt FinOps culture without fear!

PIER CLOUD- FinOps experts

As the FinOps practice is a culture developed by the FinOps Foundation, all phase credit informed in this model is, by right, hers, available at / and have been adapted for better understanding, faithfully following the concepts determined in their original publication.