finops

The FinOps journey’s third phase, “Operate”, is the last step in the FinOps cycle. But it is by no means the end.

The first phase of the FinOps journey, Inform, is about gaining visibility into your cloud operations and creating accountability. Next, the Optimize phase focuses on discovering ways to optimize cloud services and resources, and creating frameworks designed to make spend more efficient.

In this article, we go deep into the Operate phase and discover its role in a FinOps transformation. This third phase contributes to the overall optimization of your cloud services, resources, and infrastructure.

The “Operate” Phase

Operate is all about acting on the goals set during the “Optimize”  phase. However, it is also about the constant evaluation of said strategies and processes, and their continued refinement. 

In the Operate phase, armed with reliable data, the IT, finance, and business departments are able to create tailored frameworks and processes, and establish informed goals. At this point, it is all about the execution of strategies and processes to see if these help enterprises achieve those goals.

Because every process is transparent and every team is held accountable, IT, finance, and business groups are empowered to collaborate and communicate. Finance moves at the speed of IT. More than just predicting and planning cloud spend, businesses can take a deep look at their use of cloud services and resources and discover more efficient ways to purchase and consume them.

At this stage of FinOps, every process, workflow, and element of strategy are evaluated thoroughly. Every evaluation helps organizations scale their operational endeavors, discover opportunities for improvement and innovation, and increase cloud efficiency.

Alignment of Finance, IT, Operations, and Governance

For FinOps to take root at the core of an enterprise’s cloud optimization strategy, there has to be frictionless cross-functional communication between teams. This communication must be driven by accurate and factual information.

The Operate phase not only involves the launch of quantified optimization efforts; it also allows teams to continuously evaluate their established objectives and set them against the indicators used and/or discovered during the information phase.

Giving financial, governance, and operational staff access to these evaluations encourages them to constantly find methods of innovation and improvement. Because they discover issues at the same time as other players, it makes it possible for them to explore solutions together. It drives them to establish a cross-functional team dedicated to FinOps, and ultimately become a solid group that addresses any and all cloud cost issues. 

Once this happens, the FinOps culture becomes rooted at a point where IT, Finance, Operations, and Governance meets. At this converging point, the alignment of their cloud-related objectives becomes simpler and smoother than ever before.

Controls and governance for cloud usage become well-defined as goals become clearer. Processes are scaled effortlessly to match cloud requirements. Cloud spending efficiency is achieved and maintained, driving profitability for any organization.

Learn more about FinOps with Opsani’s extensive guide to FinOps and Cloud Optimization.