The State of FinOps report

The annual State of FinOps report is a cornerstone in the FinOps community, shedding light on global trends, challenges, and opportunities. The 2023 report was insightful, serving as a benchmark for organisations, including Devoteam, to align their practices with global standards. Reflecting on the previous report’s insights and their practical implementation is pivotal in propelling the FinOps narrative forward.

Tooling questions popping up everywhere

The discourse around tooling persisted in 2023, as outlined in the State of FinOps 2023 report. Tools are vital, but the real essence of FinOps is in fostering a collaborative culture among various teams. The emergence of diverse vendors, each with a unique narrative, indicated the growing traction of FinOps. However, the priority should remain the same: understanding the ‘why’ behind tooling and focusing on the broader goal of achieving financial clarity and operational efficiency.

Reporting lines are becoming clearer

Clarification in reporting lines for FinOps practices marked a significant forward stride in 2023. The trend of IT departments leading the charge was confirmed through our interactions with customers. It symbolises a growing understanding and collaborative effort across IT, finance, business, and procurement departments. This collaborative spirit is driving a holistic approach towards managing cloud economics and cost challenges. This is a positive signal for the FinOps community.

Cloud sustainability as a natural extension of FinOps

Our sustainability engagement at Devoteam underpins how adept FinOps practices contribute to reducing an organisation’s carbon footprint. As an active member of the Special Interest Group on Sustainability, we strive to stay ahead in aligning FinOps with sustainability goals. This alignment pushes organisations towards Greenops, a greener operational framework while optimising costs and encouraging development in the FinOps domain.

Top challenges remain the same over time

One of the recurring challenges has been motivating engineers to act on the insights provided by FinOps data. Engineers are central to implementing cost-saving measures. Yet the gap between providing insights and taking actionable steps based on those insights persists. This challenge underscores a cultural shift that requires nurturing a deeper understanding and appreciation among engineers regarding the financial implications of operational decisions. It’s about evolving a culture where engineers see the value in FinOps data. And a culture where they are motivated to act on it to drive cost efficiencies. This cultural shift demands time and the right support from leaders. Secondly, it requires a structured approach and continuous education to help engineers incorporate FinOps practices into their daily routines. Overcoming this challenge is a journey that requires a concerted effort from all stakeholders.

The reflection on the State of FinOps 2023 isn’t just a look back but a validation of the global stance in FinOps. At Devoteam, we utilised these insights to assist our customers in aligning with global benchmarks, underscoring the report’s practical value.

The journey continues & grows

As FinOps as an IT role gains interest, so does the community. In February 2023, Microsoft joined the FinOps Foundation as a member. This means Microsoft is also embracing the framework as the best way to approach cloud cost management. Since they joined, more Microsoft-specific information about FinOps on Azure has been published.

Your experiences and insights are pivotal as we delve into the FinOps narrative of 2024. The collective endeavour of the global FinOps community enriches the narrative, propelling the practice forward.