FinOps Operating Model Codifies Best Practices of the World's Largest Cloud Spenders, Enabling Enterprises to Bring Financial Accountability to the Variable Spend of Cloud

SAN FRANCISCO and PORTLAND, Ore., Feb. 26, 2019 /PRNewswire/ -- Today, at the Cloud Economic Summit in San Francisco, Cloudability made several announcements ushering in FinOps, a new operating model born from the best practices of the world's largest cloud spending companies, bringing financial accountability to the variable spend model of cloud. FinOps empowers IT, finance and business teams to maintain high velocity IT delivery while mastering the unit economics of cloud. Click here to learn more about FinOps.

"Our customers have been our strongest allies over the years, and together we've forged a path for performing cloud financial excellence at scale using a set of best practices that others can now apply in their own organizations, called FinOps," said Mat Ellis, Founder and CEO of Cloudability. "FinOps is the operating model necessary for cloud at scale. It provides a framework to encourage unfettered innovation by IT while putting in place the practical guard rails from finance that a business needs to compete and win in cloud."

"As our investment in cloud continues to grow relative to overall IT spend, the tension between enabling high velocity teams to innovate while controlling and optimizing spend has become a balancing act," said Hansjoerg Kaempf, Director, Cloud Governance and Cost Optimization at Cardinal Health, a Fortune Global 500 health care services company, and the 14th highest revenue generating company in the United States. "FinOps is a combination of systems, best practices and culture that empowers our cross-functional teams to maintain financial accountability against the variable spend model of cloud." 

Today, Cloudability made several announcements to bring FinOps practices to market:  

New 451 Research Finds Enterprises Uneducated and Unprepared to Manage Multi-Million Dollar Cloud Budgets

Underscoring the need for FinOps, a new report, titled "Cost management in the cloud age: Enterprise readiness threatens innovation," cites that more than half (57 percent) of large enterprises worry about cloud costs on a daily basis, with 80 percent of respondents acknowledging poor cloud financial management has had a negative impact on their business including a drop in innovation. The report concludes that cloud budgets have quickly become a material part of of IT spend, and outside of the largest cloud spenders who budget $1M+/month on cloud most enterprises are unprepared to manage this variable spend resource.  The survey captures responses from 300 Finance and IT leaders in the US and UK.  For more information on the 451 report, please see the announcement or download a full copy of the report here.

FinOps Foundation:  Leaders From Atlassian, Autodesk, Cloudability, Gannett, HERE Technologies, Just Eat, Nationwide and Spotify Join Together

The FinOps Foundation (F2) is a non-profit organization focused on codifying and promoting cloud financial management best practices and standards.  F2 is an open membership community consisting of IT, finance and business practitioners and executives.  The foundation provides a number of resources, including a community website (FinOps.org) dedicated to sharing best practices, access to FinOps meetup groups, training workshops and events. Members will also gain early access to learning materials, such as the forthcoming book, Cloud Financial Management: Building a Culture of FinOp to be released by O'Reilly Publishing.  To join the FinOps Foundation please visit and for more information on the foundation please see the announcement.

FinOps Professional Services: Strategic Guidance Every Step of the Way

Cloudability delivers professional services, support and training to help organizations achieve business outcomes as they advance through their FinOps journey. Through coaching or utilizing professional service teams embedded within customer organizations on site, Cloudability delivers a robust offering of consulting services to help customers ensure FinOps success at every step.  FinOps Professional Services deliver maximum value faster using a set of best practices to optimize the unit economics of cloud.

CloudyCon FinOps User Conference

CloudyCon will bring together FinOps leaders and practitioners delivering real world stories, expertise, and inspiration —all aimed at helping community members and their teams become better at cloud financial management. CloudyCon will take place September 10 - 12 at the Marriott Waterfront Burlingame, CA and will include headline speakers, technical breakouts, workshops and certification. For more details on registering or to sponsor the event, click here. 

FinOps Index

For the first time, enterprises can evaluate their cloud financial maturity by benchmarking themselves against an index of low, medium and high performance. The FinOps Index is built on aggregate Cloudability customer data spanning $9B in cloud spend under management, and provides a quantitative benchmark for cloud excellence based on criteria such as purchasing efficiency, provisioning optimization, resource utilization and infrastructure tagging.  For more information on the FinOps Index, please click here.

About Cloudability

Cloudability is the pioneer and leader of the emerging FinOps market, a new practice area that brings financial accountability to the variable spend model of cloud. With more than $9 billion in cloud spend under management, Cloudability helps hundreds of customers make timely decisions about cloud usage and master the unit economics of cloud. Venture-backed Cloudability is based in Portland, Oregon and is a member of the FinOps Foundation. For more information, visit cloudability.com.

Partner / Customer Quote Sheet:

"Balancing cost, speed and quality of cloud is a complex challenge we see customers deal with on a daily basis across not just IT but finance," said Javier D'Ovidio, Director of Operations at Edrans. "The FinOps cloud operating model is a blueprint organizations can use to get their arms around cloud, and begin taking a proactive stance to managing how it is budgeted and used. It's a model that helps IT, Finance and the entire business work together as one."

"Cloud financial management is a unique discipline that requires a collaborative approach like FinOps that brings IT, Finance and business leaders together," said Robb Allen, CEO, effectual. "No matter which stage of the cloud journey they are on, FinOps enables enterprises to make the fundamental cultural shift that's needed to master the unit economics of cloud by providing the best practices organizations need to be successful."

SOURCE Cloudability

Related Links

http://www.cloudability.com

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