FinOps is a discipline that helps organizations optimize the value of their cloud. It is important for all organizations, but it is especially critical for large enterprises. By following a FinOps approach, large enterprises can reduce their cloud costs, improve their cloud efficiency, and make better decisions about their cloud investments.
Large enterprises face unique challenges when it comes to cloud cost management, such as their size and complexity, multi-cloud environments, and disparate teams and cultures.
Size and complexity: Large enterprises are sprawling, complex organizations with more information to sift through, more moving parts to manage, and more stakeholders to engage with. This can make it difficult to develop and implement a cloud cost management strategy.
Multi-cloud environments: Large enterprises are more likely to use multiple cloud platforms, each with its own pricing models and service offerings. This can make it difficult to monitor costs uniformly and consistently.
Disparate teams and cultures: Large enterprises are often made up of disparate teams and cultures, which can lead to communication challenges and a lack of alignment on cloud cost management goals.
How to Overcome FinOps Challenges in Large Organizations
Despite these challenges, there are a number of things that large enterprises can do to overcome them and implement a successful FinOps strategy. Here are a few tips:
1. Establish a FinOps team, and set clear goals and expectations
Your FinOps team should be responsible for developing and implementing your cloud cost management strategy. The team should be made up of representatives from different departments, such as IT, Finance, Development and Operations. When setting up this team, you need to answer this question: What do you want to achieve with FinOps? Once you know your goals, you can develop a plan to achieve them.
2. Focus on big-ticket inefficiencies
Don't waste time on small-scale cost-optimization measures. Instead, focus on identifying and addressing the biggest cost inefficiencies in your cloud environment.
3. Negotiate enterprise pricing discounts
Your large size and cloud consumption volumes give you negotiating power with cloud providers, so use it to negotiate enterprise pricing discounts that can save you a significant amount of money.
4. Educate your workforce about FinOps
Make sure that all stakeholders, from developers to finance executives, understand the cost implications of their decisions. Each stakeholder group has different needs and priorities, so it's important to get everyone on the same page. This will help to create a culture of FinOps and Cloud Optimization throughout the organization.
5. Set up a process, instrumented with a ticketing tool like Jira, to communicate, validate and track the execution of the FinOps recommendations.
While such a process and tool might not be necessary in small organizations, they become mandatory in larger organizations where you want to scale your finops practice.
6. Deploy cost-monitoring solutions
Invest in solutions to monitor your cloud costs on an ongoing basis. This will help you to identify and address cost inefficiencies early on before they lead to significant losses.
7. Measuring the success
To measure the success of your FinOps efforts, you can track metrics such as total cloud cost savings, tagging adoption, or Reservations utilization and coverage. One particularly useful KPI is the Effective Savings Rate (ESR), which gives you a good idea of how efficient you are at getting the best Cloud Rate, or overall discount on your cloud utilization.
8. Sharing the success and the importance of achieving 'Quick Wins':
It's important to share your success across the organization, and at the board level, to gain or confirm executive sponsorship for your FinOps initiatives. Quick wins are a great way to show progress and build momentum. Be sure to share your quick wins with all stakeholders, and highlight the impact they are having on the bottom line.
FinOps is important for all organizations, but it's especially critical for large enterprises. By following the tips above, large enterprises can overcome their unique challenges and achieve significant cloud cost savings.
OptimNow.io uses a three-phase framework Inform-Optimize-Operate for FinOps implementation that is specifically designed for large enterprises. If you need expertise and guidance on how to implement FinOps in your organization, please reach out to us: we offer a variety of FinOps services, including FinOps strategy development, cost monitoring and optimization tools selection, and FinOps training. We can help you overcome the unique challenges that large enterprises face when it comes to FinOps and implement a successful strategy that will maximize the value of your cloud.