It arguably shows some new level of maturity for cloud computing when execs start looking at managing cloud costs as an integral part of the larger information technology budget. That is a more-refined level of analysis than the earlier question of whether enterprises should move compute functions away from owned infrastructure and “to the cloud.”
As a practical matter, execs now confront the possibility that dispersed ordering of cloud capabilities is inefficient, as when multiple contracts for cloud resources are let by different organizations within a single enterprise, for example. In other cases the issue might revolve around which cloud features need to be purchased.
“FinOps is essentially an operating model for the cloud world,” says J.R. Storment, executive director of the FinOps Foundation. “It brings together a prescriptive set of actions, best practices and culture that enable disparate teams like engineering, finance, IT and business to come together to get the most value out of every dollar that they spend in cloud.”
Hybrid computing approaches add more weight to the value of FinOps, as computing operations become more decentralized.
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