What is FinOps and why is it important in cloud management

Question

Before I start implementing cost governance in our cloud environment, I wanted to understand what FinOps is and how it helps in aligning financial and operational goals.

Answer 1

FinOps is an acronym for "Financial Operations, " which refers to the inclusion of financial management with best practices around operations to facilitate teams in making informed cloud spending decisions.

Here's why FinOps is significant in cloud management:

• Cost Visibility: It gives you a clear picture of where and how your cloud budget is spent.

• Collaboration: This helps teams across IT, finance, and business units work in alignment to bring cloud spending in line with business goals.

• Optimization: It pays only for what is consumed through waste identification and elimination.

• Scalability: Enables businesses to scale up or down while keeping costs in check.

FinOps equips organizations to leverage cloud spending to achieve maximum value and tangible financial responsibility.

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