All lo that you must know about FinOps

FinOps It is a set of actions focused on the Cloud cost optimization, integrating the operations and finance areas of a company. It is becoming increasingly important, as the cloud is becoming an essential part of the IT strategies of most of these businesses. Therefore, here we want to explain what it is, what its main characteristics are and what benefits it brings.

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What is FinOps?

The FinOps concept arises from the combination of the terms Finance (“finance”) and DevOps (development of from software and IT operations).

According to the FinOps Foundation itself, it is defined as the cloud-based financial management discipline that provides companies with the possibility of Obtaining the maximum possible commercial value by helping their technology and financial teams. In this sense, it is especially useful when making spending decisions based on the available data.

Fundamental principles of FinOps

In order to achieve its objectives, the methodology marks six basic principlesIt should be noted that they are not hierarchical, but must be applied simultaneously:

• Collaboration. All teams that form part of the company must work together to achieve the proposed improvements in terms of innovation and efficiency.
• Liability. All employees and managers must take this responsibility when using the cloud. The concept covers everything from the responsible use of resources to cloud security. 
• Centralization. While all employees retain their share of responsibility, it should be the exclusive property of one team. This team will be responsible for choosing the best cloud service provider and ensuring their updates, taking advantage of their offers and discounts, etc.
• TechnicalIt must be accessible and timely. That is, reports must be available to all members of the organization in a timely manner according to the established objectives.
• Decisions. They will always be considered based on the business value of the cloud. This is because FinOps is not only about reducing costs, but also about increasing business value.
• Exploitation. Above all, the variable cost model of the cloud. Without a doubt, at this point it is especially important to properly size the needs of the organization and the services acquired.

For its part, this set of cost optimization practices in cloud It is usually applied using a three-phase model, which are:

1. Inform. We must start by training workers in the use of the cloud and making them understand the need to make decisions based on it.

2. Optimize. Find savings opportunities by periodically reviewing cloud resources and scaling or eliminating non-essential services. 

3. Operate. A constant evaluation of the different processes in the cloud must be carried out. The objective is to achieve the highest possible degree of optimization.

Benefits

In conclusion, we can say that the application of the FinOps concept in companies increases business value and its capacity for innovation. In addition, boost business visibility and makes it more financially responsible. It also squeezes the most out of the cloud and facilitates collaboration between organizations.