FinOps

Definition:

FinOps is short for Financial Operations and is a collaborative management approach for controlling and optimizing cloud costs through close cooperation between IT, finance and business departments.

Relevance for Enterprise Modernization:

FinOps empowers organizations to economically manage the dynamic use of cloud resources. It creates cost transparency, promotes accountability for expenditure and makes cloud usage plannable and controllable. It is therefore a central element of modern IT strategies.

Example / use case:

A company notices that cloud costs fluctuate and rise sharply over a period of months. A FinOps approach is used to introduce responsibilities for expenditure, create dashboards for cost transparency and identify and eliminate optimization potential such as unused instances or incorrectly dimensioned resources.