What is cloud financial management?

Cloud Financial Management, or FinOps, is the operating model for cloud solutions. It combines tools, processes and best practices that enable an organization to better understand, manage and optimize its cloud usage and spending. In addition, cloud financial management fosters collaboration between management, IT, development, finance and procurement departments.

Change of approach to technology consumption with FinOps adoption

Until recent years a certain modus operandi was elaborated and used over the decades. It was based on a cycle that starts when engineering or IT teams request finance teams to procure IT infrastructure and ends when operation teams install it and hand it over to engineers.

This process raises CapEx, takes much time and effort, and increases the cost of failure for organizations due to its sluggishness. It also becomes a limiting factor to experimentation and innovation on behalf of IT teams, who can therefore become even incapacitated by dependencies from other departments.

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