Organisations are rapidly adopting cloud technologies to enhance agility, drive innovation, and scale operations. Gartner projects that global public cloud spending will reach AU$2 trillion by 2027, representing a compound annual growth rate (CAGR) of 19.6% from 2023. This growth highlights the strategic importance of the cloud while underscoring the complexities and costs of managing it effectively.
As the cloud footprint expands, businesses face challenges such as cost overruns, resource wastage, and misaligned investments. Cloud Financial Operations (Cloud FinOps) provides a critical framework for addressing these challenges, enabling organisations to maximise the value of their cloud investments by focusing on visibility, optimisation, and collaboration.
Implementing Cloud FinOps allows companies to transform the cloud from a cost centre into a strategic asset. Beyond financial oversight, FinOps promotes operational excellence by ensuring cloud resources align with business objectives. This structured approach helps organisations anticipate and mitigate financial risks, ensuring the cloud remains a driver of sustainable growth.
What Is Cloud FinOps?
Cloud FinOps combines financial management principles with cloud operations to create a culture of accountability and efficiency. It focuses on three pillars:
- Visibility: Providing real-time insights into cloud usage and costs.
- Optimisation: Refining resource allocation to eliminate waste.
- Collaboration: Aligning technology, finance, and business teams for informed decision-making.
A study by Gartner estimates that organisations without proactive cloud cost optimisation strategies overspend by 20% to 50% on their cloud budgets.
Why Cloud FinOps Matters
As organisations adopt cloud solutions with consumption-based pricing models, maintaining control over spending becomes increasingly challenging. According to Mckinsey & Company, a report indicates that companies with robust FinOps practices can reduce cloud costs by up to 30%. Here’s why Cloud FinOps is essential:
- Cost Transparency: Organisations need a clear view of where their cloud dollars are going.
- Proactive Management: By identifying cost spikes early, businesses can avoid unexpected financial strain.
- Business Value: Aligning costs with outcomes ensures every dollar contributes to measurable growth.
Oreta’s Approach to Cloud FinOps
Oreta specialises in turning cloud complexities into opportunities. Here’s how we enable our clients to achieve their cloud goals:
- Establishing Visibility: Using advanced tools, we provide real-time dashboards, detailed cost breakdowns, and trend analysis. These insights empower organisations to make data-driven decisions.
- Driving Optimisation: Our experts identify cost-saving opportunities through:
- Rightsizing resources.
- Automating scaling policies.
- Implementing reserved instances or savings plans.
- Eliminating unused assets.
According to AWS, businesses adopting these practices can save up to 40% on compute costs.
- Enabling Collaboration: Cloud FinOps thrives on collaboration. Oreta bridges gaps between IT, finance, and business units, fostering alignment through training and shared goals.
- Continuous Improvement: With the dynamic nature of cloud environments, Oreta provides ongoing support to adapt to changing workloads, pricing structures, and priorities.
A Timely Investment: Cloud FinOps Post-Migration
If your organisation has recently migrated to the cloud or undertaken modernisation efforts, now is the perfect time to adopt Cloud FinOps. Oreta ensures your cloud environment operates efficiently while delivering measurable value, turning migration efforts into sustained business success
Why Choose Oreta?
With a customer-first approach and deep expertise, Oreta ensures your Cloud FinOps journey delivers results. Our offerings include:
- Skilled consultants with proven cost optimisation experience.
- Frameworks to accelerate FinOps adoption.
- Tailored solutions that align with your business needs.
Partner with Oreta to turn cloud complexity into clarity, enabling your organisation to thrive in the digital age. Contact us today to learn more!
References
- Gartner. Optimising Cloud Costs: Strategies for Success. https://www.gartner.com/en/information-technology
- Mckinsey Digital. The FinOps way: How to avoid the pitfalls to realizing cloud’s value.
https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/the-finops-way-how-to-avoid-the-pitfalls-to-realizing-clouds-value - AWS. Cloud Cost Optimisation Best Practices.
https://aws.amazon.com/aws-cost-management/cost-optimization/
