Cloud spend today impacts both the top and bottom lines for many organizations. The increased usage of cloud resources only accelerates the challenges for risings costs, visibility, and financing. With these challenges, it’s reasonably easy to stumble over a pitfall and suddenly find that your cloud spend has dramatically gone over budget.
The Challenges in Budgeting Cloud Costs
Budgets can quickly become out of date when finance teams base spending allocations by retroactively reporting on a quarterly or yearly basis. Likewise, procurement teams can only negotiate with their cloud service provider to get the best rates for what they know engineers have used. Presenting challenges as engineers introduce new tooling, services, and solutions that allow them to deliver faster. Organizations today are introducing FinOps teams and operating models to combat this latency and lack of visibility and to enable business operations to continue.
An Introduction to FinOps
In a FinOps team structure, technology and engineering teams work closely with finance teams to forecast costs based on the actions of engineers, who have not traditionally thought about cloud costs.
FinOps introduces new ways of working and thinking shifting the conversations technology executives have from “ensuring services have the capacity to ensuring that they’re spending the right amount of money for the job”. Allowing executive buyers to control how much is spent and to strategically influence where it is spent.
How Harness Helps You On Your FinOps Journey
Continuous Efficiency (CE) can help your organization manage cloud costs and achieve FinOps principles. Engineers will be able to show where, when, and why workloads costs exceed budgets. And leveraging this shared knowledge builds confidence, trust, and efficiency across your organization.
Shifting down clouds costs to developers gives allows everyone to take “ownership of their cloud usage.” This is a core principle of FinOps where “individual feature and product teams are empowered to manage their own usage of cloud against their budget.” Below is a screenshot of how our team at Harness uses CE to manage budgets across different business functions.
If you’d like to try Continuous Efficiency today, check out our cloud cost management software and request a meeting today!
Storment, J. R.. Cloud FinOps . O’Reilly Media. https://www.finops.org/cloud-finops-oreilly-book/