3 predictions on FinOps for 2023

Do you want to know what is ahead for FinOps in 2023? This is Kostner’s take on what is ahead in the world of those managing  costs of a major cloud platform like Azure, AWS and GCP. 

Prefer video over text – scroll to the bottom of this page to see the full video.

The 3 major predictions are:

1. Cloud Cost Management on the CIO agenda - as well as the CFO

Cloud spend on major platforms like Azure, AWS, or GCP will eclipse all other IT expenditures to become the biggest cost item in IT. This will attract the attention of finance, in a way you likely haven’t been accustomed to. If IT can’t give credible answers to how it intends to manage and reduce what is to date on average 50% YoY growth, Finance is likely to take control – and that’s rarely a fun experience for IT.

2. Strategic Management of Commitments

Trading Agility for Affordability. I often joke that agility in cloud is 20% technology and 80% total lack of process. Well, going forward, expect to see more process. The hope is we can use a combination of the flexibility of cloud to allow after-the-fact cleanup, and the predictability and lifecycle of systems, to avoid the dreaded pre-approval processes. With the recent changes in policy, we need to be able to look at least 1 year into the future and make decisions about the stable portion of our environment. If we can’t, we’ll be missing out on at least half of savings.

3. Review, Spend and Clean-up

About half of all the attainable savings come from regularly reviewing the spend on installed environments with those who know that environment best. We regularly see identified savings of between 20 and 30% the first time this kind of spend review is performed, and making this a core process is a great way to keep that spend under control.

Next step?

So when your CFO realizes that your cloud spend has gone up a lot and it is looking like it is going to continue – having control over these two elements, presenting them, is a good way to make sure you get to keep as much agility and flexibility as possible – and still run as cost-efficiently as you possibly can.

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