The implementation of a FinOps team will ensure that all FinOps efforts are aligned within your organization and drive your FinOps agenda from awareness to action.
If your company is using public cloud, you are probably well aware that there is a lot to manage – and as your cloud usage increases so does the assignments with managing cloud costs. Most C25 companies counter this increase by implementing a dedicated FinOps team to manage cloud costs. The FinOps team will be the link that assures the company is streamlined on their FinOps efforts.
The key take away’s of the FinOps journey
The FinOps journey makes it evident that the more money you spend on cloud the more effort you need to put into managing your cloud costs.
It shows what FinOps initiatives you should focus on depending on the size of your monthly cloud spend. It works as steps, and each time you go one step up you add on to the already existing assignments. The FinOps journey differs from company to company depending on the specifics of your organization, but for many the FinOps journey will look like the illustration above.
The central role of the FinOps team
The FinOps team is the glue that holds the FinOps initiatives together. They have an all-embracing role in helping the different departments with the aspects of FinOps that cannot be centralized i.e. helping management with reporting, business with quantity management, procurement with negotiation input, finance with reconciliation and chargeback and IT with cost architecture.
Added up it is a lot of tasks, yet it is simple if it is all centralized in the FinOps team.
When it comes to implementing a FinOps team some companies designate people that are already within the company and give them the resources to gather knowledge of the FinOps discipline either through self-learning or an external FinOps partner while other companies decide to recruit a whole new set of people.
The tasks that a FinOps team should be able to take charge of is invoice control, price optimization, quantity management, negotiation input, chargeback, management reporting, forecasting etc. Some of the tasks will be centralized in the FinOps team while others will be in cooperation with the rest of the organization. Which tasks is handled where also varies from organization to organization.
3 roles that are necessary for the FinOps team
In our work helping customers with cloud cost management, we’ve helped our fair share of companies build their FinOps team as they along their FinOps journey realize the importance of a central FinOps team in the organization to connect all FinOps efforts and help the different departments with what cannot be centralized.
The 3 roles we always see as an essential part of a FinOps team is one FinOps Business Manager, one or more Technical FinOps Manager(s) and a FinOps Project Manager who is needed as there are several projects with a need for financial management.
This will be the person with the overall responsibility for the FinOps practice and the FinOps team.
The role requires a broad range of skills, i.e., discussing IT cost models with the business (who is not familiar with IT cost models), as well as being able to challenge IT/DevOps when they push back referring to “this will put operations at risk…”. The position offers a lot of interaction with the internal customers and requires business acumen and financial management capabilities.
The success of the FinOps efforts will come down to this person’s ability to drive the agenda from awareness to action both centrally, and with each project or customer stakeholder.
The technical FinOps manager is the “boots on the ground” of the FinOps team. Responsible for either directly, or with internal or external collaborators, implementing the agreed optimizations.
This role involves keeping the environment free of wasted resources through a continuous effort. It requires attention to detail and interest in keeping up to date on the constantly changing cost saving models. The position requires technical experience and offers a new career path learning the skills required to manage IT costs in a service model.
The technical FinOps Manager is the first to notice any cost changes, including observing the effects of implemented initiatives.
This role is required to ensure a structured and planned process for implementing FinOps as a governance framework so that it is well documented, with the necessary technology support, and broadly accepted within the organization – all the way from the top and down.
In smaller organizations with small, non-business critical budgets this role may be filled by the FinOps Manager, but in all larger organizations with million EURO budgets this is a full-time project for months.
Implementing the FinOps team
You now have the 3 roles necessary for a well-functioning FinOps team. A FinOps team will bring you in control of you cloud spend and ensure that your cloud spend is not suddenly going up the roof due to unforeseen changes – with a FinOps team that risk is covered as they monitor your cloud environment daily as well as streamlining FinOps efforts in the whole organization making every department aware of the organization’s focus on FinOps initiatives.
Want to discuss the benefits of a FinOps team for your organization with a FinOps partner? Book an inspiration meeting with us here.