Will 2022 be the year that cloud FinOps finally becomes a full-time job for many people?
Cloud FinOps has become a buzzword over the last couple of years. This has led to many people now doing some parts of the cloud FinOps function. But this is mostly as an adjunct to their normal job, and often has a low priority and visibility within the business.
In 2022, we hope to see more people with specific responsibilities for the many aspects of cloud FinOps. This role could fit into a SecOps/DevOps/FinOps structure or a Cloud Service Management, Cloud Architecture, or Infrastructure Operations team. By becoming a role within the business, it provides focus and demonstrates its importance to the business, which can aid the development and growth of a strong cloud FinOps culture.
Cloud FinOps roles that need to be adopted
- Governance: Setting a cloud FinOps strategy, assigning cloud FinOps roles, developing business metrics and leading wider cloud FinOps conversations
- Planning: Establishing budget owners, forecasting costs and then tracking and allocating spend
- Optimising: Guiding technical optimisation and delivering financial optimisation
- Mitigating: Controlling costs, monitoring and alerting for cost anomalies and responding to alerts
Most of the current focus has been optimising cloud costs either through technical processes of removing, reducing or refactoring cloud services. Or through financial rate optimisation using spot instances, scheduling and commitments. We expect that there will be a strong move towards establishing or enhancing existing Cloud Governance processes. This will allow more people to take responsibility for their cloud costs and provide greater recognition for cloud FinOps.
The second step in the development of Cloud Governance is to improve cost planning and cloud value visibility. By relating one or more business metrics, such as unique users per day or user transactions per hour, to cloud cost, a business value (or unit economics) process can be established. This value-based approach enables reporting on long-term cloud cost efficiency. This means you can track the value of the cloud rather than the cost. Hopefully, this will show that the value is increasing!