What is FinOps?
FinOps is short for Cloud Operation Financial Management; in English Cloud Financial Operation Management. It's the practice of bringing financial responsibility to the cloud's variable cost model, enabling teams to make decisions between speed, cost and quality.
At its core, FinOps is a cultural practice. It brings together best practices for managing your costs in the cloud by assigning ownership of costs (or cost center) to the internal groups that use them in the cloud. The practice of FinOps involves cross-functional teams that aim to drive innovation, without giving up financial and operational control.
Initially FinOps is associated with cost savings, but as your practice matures the result can become an increase in revenue. This is because, once the financial efficiency of the operation is assured, the increase in cloud spending can signal the growth of the customer base, greater speed in the launch of products and resources or even the migration of less efficient systems to the cloud .
- Inform - visibility of cost allocation and awareness/accountability shared by the teams involved - what is being used and why.
- Optimize - Identify opportunities to improve efficiency in the use of resources, as well as plan the best way to take advantage of these opportunities.
- Operate - Define and execute processes that align IT, Finance and Business objectives.
The practice is made up of financial optimization cycles, or simply FinOps Cycles:
- The Cycle starts by collecting information about the environment, its proper identification and association with the cost centers/business units/teams responsible for its use.
- Then all the optimization possibilities are listed, which should then be discussed for feasibility analysis and implementation planning by the FinOps committee, composed of finance, technology and business teams.
- Finally, the Cycle is put into production, the FinOps committee establishes and maintains a cadence of revisions and alterations in order to ensure the financial sustainability of the operation.
The Matrix Cloud Cost Optimization managed service is offered in the SaaS (software as a service) model, in two modalities:
Management by Matrix
Matrix will be responsible for starting and maintaining the Cycles. The client undertakes to make available the resources of the FinOps committee (financial, technology and business) necessary for the creation and impact analysis of Ciclos. In this mode, the client does not have access to the system's most privileged user (root).
The customer will be responsible for starting and maintaining the Cycles, through the software service provided by Matrix. In this mode, the client has access to the system's most privileged user (root).