From Overspending to Savings: 5 Ways How FinOps is Revolutionizing Cloud Economics

Terms of use

Terms of Use

The use of this site and the content contained therein is governed by the Terms of Use. When you use this site you acknowledge that you have read the Terms of Use and that you accept and will be bound by the terms hereof and such terms as may be modified from time to time.

All text, graphics, audio, design and other works on the site are the copyrighted works of nasscom unless otherwise indicated. All rights reserved.
Content on the site is for personal use only and may be downloaded provided the material is kept intact and there is no violation of the copyrights, trademarks, and other proprietary rights. Any alteration of the material or use of the material contained in the site for any other purpose is a violation of the copyright of nasscom and / or its affiliates or associates or of its third-party information providers. This material cannot be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way for non-personal use without obtaining the prior permission from nasscom.
The nasscom Members login is for the reference of only registered nasscom Member Companies.
nasscom reserves the right to modify the terms of use of any service without any liability. nasscom reserves the right to take all measures necessary to prevent access to any service or termination of service if the terms of use are not complied with or are contravened or there is any violation of copyright, trademark or other proprietary right.
From time to time nasscom may supplement these terms of use with additional terms pertaining to specific content (additional terms). Such additional terms are hereby incorporated by reference into these Terms of Use.

Disclaimer

The Company information provided on the nasscom web site is as per data collected by companies. nasscom is not liable on the authenticity of such data.
nasscom has exercised due diligence in checking the correctness and authenticity of the information contained in the site, but nasscom or any of its affiliates or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this site. The information from or through this site is provided "as is" and all warranties express or implied of any kind, regarding any matter pertaining to any service or channel, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement are disclaimed. nasscom and its affiliates and associates shall not be liable, at any time, for any failure of performance, error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communications line failure, theft or destruction or unauthorised access to, alteration of, or use of information contained on the site. No representations, warranties or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability or applicability of the information to a particular situation.
nasscom or its affiliates or associates or its employees do not provide any judgments or warranty in respect of the authenticity or correctness of the content of other services or sites to which links are provided. A link to another service or site is not an endorsement of any products or services on such site or the site.
The content provided is for information purposes alone and does not substitute for specific advice whether investment, legal, taxation or otherwise. nasscom disclaims all liability for damages caused by use of content on the site.
All responsibility and liability for any damages caused by downloading of any data is disclaimed.
nasscom reserves the right to modify, suspend / cancel, or discontinue any or all sections, or service at any time without notice.

For any grievances under the Information Technology Act 2000, please get in touch with Grievance Officer, Mr. Anirban Mandal at data-query@nasscom.in.

New

See all

No notification found.

From Overspending to Savings: 5 Ways How FinOps is Revolutionizing Cloud Economics

Kaneshwari Patil

@Kaneshwari Patil

September 8, 2023

Cloud Computing

Highlights:

Traditional financial institutions are adopting cloud technology to stay competitive in a landscape disrupted by agile FinTechs, relying on the cloud for innovation and efficiency. However, 94% fall prey to overspending.
Implementing FinOps practices can lead to significant cost reductions, often exceeding 30%. It promotes efficiency, data-driven decision-making, and adherence to compliance standards, which are crucial in the financial sector’s regulated environment.
Organizations like GE Digital, Finastra, Capital One, Nasdaq, and Square have harnessed FinOps principles to achieve substantial cost reductions while maintaining operational excellence.
Microsoft Azure provides a suite of tools and services, including Azure Cost Management, resource tagging, Cost Explorer, Reserved Instances, Azure Advisor, and third-party integrations, to facilitate effective FinOps implementation for financial institutions.

In the ever-evolving landscape of financial services, cloud computing has emerged as a transformative force, reshaping how traditional banks and financial organizations operate. While traditional banks are gradually embracing the cloud, many FinTech companies have already raced ahead in harnessing its potential, leveraging their agility and digital-first mindset to gain a competitive edge in the financial industry.

This shift to cloud computing represents a significant departure from traditional IT infrastructure management. In the past, organizations would invest in physical hardware and software licenses, and these fixed costs remained relatively stable regardless of how much or how little they used their IT resources. However, with the advent of cloud computing, the rules of the game have changed. In recent years, traditional banks have embarked on a transformative journey to migrate their operations to the cloud, drawn by a compelling array of advantages such as cost-efficiency, scalability, and enhanced innovation capabilities.

In a cloud pay-per-use model, organizations are billed based on their actual consumption of cloud resources, such as virtual servers, storage, and data transfer. This means that every action and decision made within the cloud environment directly impacts the organization’s expenses. Running workloads, deploying applications, and storing data all come with associated costs, and these costs can quickly add up if not managed carefully. Organizations can no longer operate in the cloud with a “set it and forget it” mentality. They must now be acutely aware of the financial implications of their cloud usage. Ignoring or neglecting these cost considerations can lead to budget overruns, financial inefficiencies, and a competitive disadvantage.

According to a report by Flexera, 30% of cloud spend is wasted.
A study by Forrester found that 94% of enterprises are overspending in the cloud.
The average enterprise spends an additional 30% on cloud computing than it originally planned.

Organizations are turning to a discipline known as “FinOps,” short for Financial Operations, to address this challenge. FinOps is a framework and set of practices designed to bring financial accountability and efficiency to cloud operations. It involves cross-functional collaboration between finance, IT, and operations teams to establish cost visibility, allocate cloud expenses accurately, and optimize spending.

FinOps helps organizations proactively manage their cloud spending to strike a balance between innovation and cost control. It provides tools, best practices, and guidelines to monitor usage, implement cost-saving strategies, and make data-driven decisions. By adopting FinOps principles, organizations can ensure they are getting the most value from their cloud investments while staying within budget constraints, ultimately helping them maintain competitiveness in an increasingly cloud-centric business landscape.

Click here to read more about Why FinOps Is a Must-Have in the Cloud

Disclaimer

That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.

Kaneshwari Patil