Global end-user spending on public cloud services this year projects to total $494.7 billion, which is a 20.4% growth rate. With this increase, financial institutions need the best practices that can manage, monitor, allocate and forecast cloud spend to maintain operational stability.
These processes and procedures are the foundation of Financial Operations (FinOps). Adopting a FinOps framework for your cloud needs can evolve your enterprise into one that always makes the right financial decisions at the right times.
What Is FinOps?
Financial Operations through cloud managed services (CMS) is a framework that helps organizations maximize cloud services while minimizing unnecessary cloud spend by proactively preventing cost overruns and eliminating waste via data-backed decisions. By bringing teams together to coordinate cloud spend, this practice is an integral part of using cloud services.
A cloud managed FinOps framework is vital for companies that use cloud services because it offers:
- Reliable and modern security and infrastructure for your data.
- Rapid and round-the-clock support for issues or concerns.
- Improved efficiency by allowing your team to focus on other tasks.
- Up-to-date compliance for industry standards.
Financial Operations empowers your team to drive more revenue by guiding them to spend only when necessary. This model manages risk, maintains compliance and makes processes more efficient within your organization.
How Can a Cloud FinOps Framework Accelerate Your Business Agility?
Several companies usually fail in their digital transformation not because of lack of technical expertise, but from cost overspending, disconnected leadership and cultural problems.
A Financial Operations framework for your company can increase cloud computing business agility and optimize spend in the following ways:
1. Clear Cost Allocation
Cost allocation is how and what your organization is investing in. Cost allocation and cloud spend present many challenges for companies, especially when their teams don’t consistently collaborate on investment decisions.
A cloud financial management provider that helps your company with clear cost allocation can organize your team and merge investment data to prevent future dysfunction, low ROI and inefficient task management.
Additionally, a FinOps framework that provides visibility into cost data at all layers in your organization is crucial to long-term success in the cloud.
2. Accurate Forecasting
Financial Operations forecasting is the process of predicting potential spending opportunities. An accurate forecasting model helps to improve agile process and budget planning within IT by:
- Combining data, like historical spending and upcoming business operations.
- Accounting for future cloud infrastructure changes and how they may affect current budgets.
- Considering cloud application changes and how they can impact budget planning and determine future investment decisions for cloud spend.
3. Unified Operations Across Teams
Financial Operations provides more than cost-effective strategies. It also drives revenue by helping teams cooperate to make the best cloud spend decisions — like technology and cloud usage investment choices. The foundation of FinOps is to help your team make optimal investment decisions, not only cost-effective ones.
Empowering your teams with the best Financial Operations tools optimizes productivity and cloud spend. At Onix, our Cloud Specialists help financial institutions reduce cloud spend and maximize revenue while maintaining safe internal security practices.
4. Strengthen Client Relationships
As companies continue to use cloud services, it’s crucial to adopt a business operations framework that will help you stand out from the competition. Cloud FinOps gives you opportunities to provide both new and current customers with streamlined services, which can lead to repeat clients and an increase in new ones.
However, a framework is only as good as your team collaboration. An alignment of business goals and focus on cloud service growth within your teams is necessary to cultivate long-lasting relationships with both stakeholders and clients.
Because of the complex and tedious process behind implementing FinOps into organizations, a third-party provider with cloud spend expertise can help your company make more informed decisions without sacrificing vital resources.
How Onix Ascend Provides the Best FinOps Framework
As online transactions continue to increase, financial organizations need the right model in place to optimize their team, investment decisions and risk management.
Our Cloud Specialists offer the support and guidance to assist in cloud spend to scale your organization according to its needs.
Interested in learning how we can help you undergo a digital transformation to help you maximize your revenue and cloud services? Connect with an Onix Cloud Specialist today to learn how Onix Ascend can provide you with value-added services for your business.
