A phased approach supporting FinOps adoption
In this article, I continue the topic to help drive and structure Cloud FinOps adoption. In my previous blog 4 dimensions for driving FinOps adoption I presented a simple and pragmatic structure on how to get started or move to the next phase implementing FinOps. The aim is now to provide an easy-to-use approach to facilitate creating and following up your strategy and action plan.
Disclaimer: I work at Google in the cloud team. Opinions are my own and not the views of my current employer.
1. Laying the Foundation: Assessing Your Current State
Before diving into execution, it’s crucial to understand your organization’s current context and establish an initial maturity level. This involves:
- Taking Inventory: Identify the teams involved in cloud spending, the activities they perform, and the tools and processes they use.
- Defining a Strategy: Develop a clear FinOps strategy aligned with your organization’s overall cloud strategy and business goals. This strategy should consider your specific context and outline how you’ll improve cloud financial management.
Think of this step as building a foundation. You need to understand the ground you’re building on before you can start constructing your FinOps framework. Examples to start from include the Google Cloud FinOps framework and the FinOps Foundation framework.
2. Building the Framework: Pragmatic Actions and Continuous Improvement
With a solid understanding of your starting point, it’s time to define actionable steps toward your desired FinOps maturity. This involves:
- Creating a Roadmap: Develop a plan with specific, measurable, achievable, relevant, and time-bound (SMART) actions.
- Iterative Approach: Regularly review and adapt your plan, ideally quarterly, to ensure it remains aligned with your organization’s evolving needs and priorities.
- Prioritize Completion: Focus on completing actions rather than creating an endless list. Consistent progress is key to building momentum.
This stage is about constructing the framework of your FinOps practice. Remember that agility is essential; your roadmap should be a living document that adapts to the changing cloud landscape.
3. Strengthening the Structure: Collaboration and Enablement
FinOps is not a solo endeavor. To truly succeed, you need to foster collaboration and enablement across your organization:
- Cloud Foundations Synergy: Align your FinOps initiatives with your Cloud Foundations or Landing Zone operations. This ensures consistency in how cloud resources are deployed, used, and scaled.
- Data-Driven Insights: Leverage your Landing Zone as a data platform to gather and analyze cloud spending information. This provides transparency and actionable insights for all stakeholders. Both domains will benefit from each other: for instance, a new project creation in the Landing Zone will include the definition of the business owner, workload estimation, project purpose, etc. — information that is key for FinOps.
- Empowerment through Education: Invest in training, workshops, and communication to build FinOps awareness and understanding across your organization. This empowers teams to make informed decisions about cloud costs.
Think of this as reinforcing your FinOps structure. By fostering collaboration and enabling your teams, you create a strong and sustainable FinOps culture.
Conclusion: Building a Sustainable Cloud Future
Cloud FinOps is not merely about cost reduction; it’s about maximizing the value of your cloud investments. By following this phase-by-phase approach, you can build a robust FinOps practice that drives financial accountability, optimizes cloud spending, and ultimately accelerates your business growth.
Remember that FinOps is a journey, not a destination. Continuous improvement, collaboration, and a data-driven approach are crucial for long-term success.
