FinOps Trends: A Glimpse into 2024

2024 is well underway already, but it is never too late to look at where we are headed in the cloud spend. Gartner Forecasts Worldwide Public Cloud End-User Spending to Reach Nearly $600 Billion in 2024, so making sure you do not overspend can reap significant benefits.

In the world of FinOps, finance meets DevOps in the most delightful way! A common misunderstanding is that FinOps is a mix of Finance and Operations. The FinOps Foundation has said it is actually meant to be a marriage between Finance and DevOps. We will dive into the exciting realm of FinOps and explore how it brings a cheerful twist to the traditionally monotonous world of finance. From cost optimization to streamlined processes, FinOps promises to bring visibility, efficiency, and a touch of whimsy to your financial endeavors. 

To be successful, FinOps needs the support and collaboration of multiple stakeholders, especially DevOps and ITOps teams and site-reliability engineers (SREs) on cloud spending decisions even though these teams are typically not experts in cost management nor is it their top priority. Sadly, the responsibility of FinOps often falls into an existing role, of which 68% live within Engineering, DevOps or IT- according to FinOps Foundation.

A FinOps framework is often split into four:

  • Analysis. Audit cloud expenses, with visibility into IT budgets and allocations by team. This is often done by cloud providers’ native tools. 
  • Benchmarking. Measure performance of cloud instances to detect over- and underprovisioning. Set limits and buffers to make sure that potential auto-scaling does not cost too much.
  • Optimization. Rightsize instances (choose spots where applicable), reposition workloads, and tune applications to improve cost/performance. This is usually done by DevOps, where Cloud FinOps helps to automate some or all of the rate optimization while giving higher discounts, freeing up devops teams time for more value-adding activities. 
  • Negotiation. Consolidate cloud services provider (CSP) purchases and align cloud service allocations with organizational strategy.

These steps should be repeated periodically to maintain efficiency and enable innovation while reducing costs.

Future trends: 

  • A general lack of cost transparency drives the need for better cloud cost management 

There is a lot of room for better visibility with a growing demand for simplified cloud cost management tools. The expectation within Ops teams is that in addition to visibility and recommendations, there should also be a built in automation layer to apply to suggested optimisation strategies without extensive continuous manual labor.  

We all know that managing finances can sometimes feel like navigating a maze blindfolded, but when it comes to FinOps, things can get even trickier. Picture this: you’re trying to make sense of your expenses, but instead of clear and concise information, you’re met with a jumble of numbers and cryptic jargon. It’s like trying to decipher a secret code without the decoder ring! And let’s not forget those hidden fees that lurk in the shadows, ready to pounce on your budget unsuspectingly. It’s enough to make anyone want to throw their hands up in exasperation! 

So, why is cost transparency so vital in the world of FinOps? Well, it’s all about enabling you to make informed decisions. When you can see the true costs and understand where your money is going, you’re better equipped to optimize your spending and cut those unnecessary expenses. So, let’s get more clarity, more openness, and more straightforwardness in FinOps. After all, knowledge is power, and a little transparency can go a long way in making our financial adventures a whole lot less confusing.

  • Real-time cloud infrastructure

Real-time cloud architecture is probably already one of the more prominent cloud computing trends in 2024. Businesses crave real-time data processing and action. Architecture designed for dynamic, immediate access to resources and services. This is achieved through a combination of a few of the following technologies:

  1. Serverless computing: No need for server management, allowing your code to run instantly upon the trigger which is perfect for real-time processing.
  2. Edge computing: Brings data processing closer to the source, reduces latency and bandwidth usage for your time-sensitive applications.
  3. Flash and solid-state storage: Delivers fantastic data access speeds, empowering real-time analysis and decision-making.

Real-time cloud architecture therefore offers several advantages: dynamic scaling to handle ever-changing data loads, immediate responses for enhanced client service, and quick decision-making powered by real-time insights. This can enable early anomaly detection, leading to increased safety and accelerated technology adoption.

  • The use of AI algorithms for real-time cost analysis and predictions is predicted to be a major trend in 2024 and beyond

AI brings a whole new level of efficiency to FinOps. With the ability to automate repetitive and time-consuming tasks, AI enables teams to focus on more strategic and value-added activities. From streamlining financial reporting processes to optimize cash flow management, AI is a game-changer for boosting productivity within finance departments.

But it doesn’t stop there! AI also empowers businesses to make smarter and more informed financial decisions (not only help write blog posts 😉 ). By analyzing vast amounts of data in real-time, AI systems can provide valuable insights and predictions. This means that not only the ITOps team, but also the CFOs and financial analysts can rely on AI-powered solutions to access accurate forecasts, identify potential risks, and seize profitable opportunities. It’s like having a super-smart financial advisor at your fingertips!

Moreover, AI helps in tackling fraud and cybersecurity threats. Its advanced algorithms can detect suspicious patterns, flagging potential fraud attempts before they cause significant damage. With AI’s assistance, FinOps teams can enhance their security measures and ensure the integrity of financial transactions.

AI is a friendly ally in the realm of FinOps. Its ability to automate tasks, provide valuable insights, and bolster security has transformed the way we manage finances. So, embrace the power of AI and let it take your financial operations to new heights. With AI on your side, you’ll be navigating the financial landscape with ease and agility. 

To sum up

  • It is important to stay ahead of these trends to optimize cloud costs effectively and when IT teams embrace these trends you can enjoy the benefits of paying less for your cloud.
  • The collaboration of DevOps and FinOps enhances cost awareness, while recent industry progressions showcase significant cost reductions through innovative automation platforms. 
  • Cloud FinOps, a dynamic discipline, empowers businesses to maximize cloud returns, emphasizing the evolving role of AI and advanced analytics in shaping the future of financial operations. 

Happy FinOps-ing!

Reach out to us to find out how Cloud FinOps could help you pay less for your cloud.