The cloud comes with unique considerations around governance and spending that simply are not present for on-premises solutions. However, with a little guidance, these challenges are by no means insurmountable. Let’s dive in.
1. Empowering IT to Take Ownership of the FinOps Initiative
FinOps is a crucial part of Software Lifecycle Management, which centers on IT taking ownership of the software lifecycle. This is easier said than done since many employees outside of IT use the agility and flexibility of the cloud to circumvent traditional procurement processes. Software Lifecycle Management, which centers on IT taking ownership of the software lifecycle. This is easier said than done since many employees outside of IT use the agility and flexibility of the cloud to circumvent traditional procurement processes.
Under a FinOps model, IT teams must take initiative to become well-versed on the rules and processes necessary to rein in extraneous software and resource consumption. They can start by examining what their current organizational structure looks like, how much budget each team has for cloud expenditures, and how to communicate with stakeholders across departments to ensure everyone understands the value of following FinOps processes.
For many IT teams, this is a tall order – don’t be afraid to phone in an expert if your team finds it difficult to get a firm grasp on all the moving parts.
2. Creating a Collaborative FinOps Strategy Across Business Units
Today, 94 percent of organizations use the cloud. If you’re part of that majority, it’s fair to say almost every individual in your organization is using the cloud in some capacity. So, while IT has ownership over your FinOps strategy, a smooth adoption strategy and ongoing collaboration with the rest of the organization will be key.
IT teams should start by becoming familiar with the responsibilities and budgets of each department in your organization. Then, identify the user champions that will help them kick-start your FinOps strategy – try to get at least one from each department. Once your IT team has found key stakeholders and understands how their team impacts cloud spend, it’s time to get those stakeholders up-to-speed on what FinOps is, and basic steps they must take to start the initiative.
For example, the IT team needs to educate stakeholders on how to use standardized tagging, tracking, and reporting processes to ensure all cloud spend is properly accounted for without undue delay. Then, those stakeholders need to ensure the concepts are well-understood and adhered to by every member of their team. However, this is not a solely top-down process – every employee in the organization should have a say in how the FinOps strategy develops.
3. Enabling the Culture Change Required to Continue Supporting FinOps
Getting teams to stay accountable for cloud spend can be a hard topic to breach. After all, employees will immediately see a short-term benefit to implementing new cloud services without prior authorization – they’re much less likely to realize how staying accountable ultimately benefits the entire business. While teams may initially commit to agreed-upon processes, ensuring they continue to follow through requires a dedicated, prolonged culture change.
Cultivating a culture that values FinOps is essential to achieving a balance of accountability and agility. IT teams need to drive forward a culture that enables communication and breaks down silos between teams that scarcely collaborate. Further, you must ensure they acquire FinOps-certified tools that make it easy for teams – even those without technological proficiency – to stay accountable. Finally, your team should follow up with relevant metrics and provide constructive feedback to help every team understand the impact of cloud financial management.
When every team feels they have an equitable impact on creating and optimizing your FinOps strategy, they’re much more likely to commit to following the protocols they helped put in place.