Enterprises continue to waste money due to mismanaged cloud infrastructure. The automated nature of cloud tooling makes it easier to scale inefficient or unused infrastructure more quickly.
Flexera’s State of the Cloud report found that 27% of cloud spend continues to be wasted despite optimisation efforts.
By adopting FinOps practices, enterprises can overcome the challenges associated with inefficient cloud spend. It adds an operational and cross-enterprise collaboration element to cloud cost management tooling.
A primary driver for FinOps is developing enterprise workflows to align cloud spending with usage, thereby saving money. It can also help streamline processes and help set expectations for savings and other positive changes.
Titus M, practice director at Everest, an advisory firm, observed that organisations that reach mature FinOps maturity consistently realise cost reductions of 20-60%, improve cost predictability and forecasting, accelerate decision-making through embedded cost awareness, and achieve operational excellence through automation and visibility. This provides a strategic advantage through accurate service pricing and ROI calculations, enabling agile resource deployment and a faster market response.
Titus M said, “We have seen enterprises reach a reasonable amount of maturity within 12-18 months. Now we are reaching a stage in the market where cost predictability and cultural transformation are becoming mainstream.”
Here are some use cases where enterprises are starting to see the value of FinOps practices.
Ouribank, a fintech leader in financial services in Brazil, worked to focus its FinOps strategy. When they started, cost visibility remained fragmented across development, operations and finance teams. Rather than pursuing immediate cost cuts, they followed the FinOps Foundation’s framework for a phased roadmap, which was stewarded by a dedicated FinOps specialist.
They prioritised low-operational quick wins in numerous ways, including:
The second phase focused on structured Savings Plans and Reserved Instances purchases for medium-term resource needs. In the first year, they:
“Tagging governance serves as the foundation for chargeback maturity, enabling precise cost attribution at granular levels,” said Titus M. This phased crawl, walk and run approach typically requires 12-18 months from initial visibility to mature chargeback operations.
Aykut Duman, a partner in Kearney’s Digital & Analytics practice, worked with one leading US telco to guide its FinOps journey. This process involved a cross-disciplinary focus on cost analysis, allocation and optimisation across multiple cloud environments. The groundwork helped the telco link visibility and context across billing, workloads and consumption data.
The multidisciplinary aspect involved working with finance, IT and procurement teams. It has also improved the ability to allocate cloud costs to specific workloads and business owners. Multiple people can collaborate to identify and pursue rightsizing opportunities by taking advantage of reservations and savings plans. Duman said they are realising savings of 5-10% and have achieved about 1% variance in budget accuracy.
Philipp Jung, a senior partner in Kearney’s Digital & Analytics practice, worked with a leading digital media company on a project to improve developer cost visibility to drive behaviour change. The first step was to find ways to embed cost data directly into engineering workflows and to incentivise their use.
“The aim wasn’t only to cut spending but to make cost a first-class engineering signal like latency or reliability,” said Jung.
The company reported saving millions within the first few months of making costs visible and actionable. A key insight was finding ways to surface cost data directly into the engineering team’s existing tools. This allowed developers to see and prioritise cost optimisations associated with products without leaving their tools.
Will Thomas, managing director and cloud optimisation lead at Protiviti, recently conducted a proof-of-value engagement with a client that had adopted a FinOps tool. Nearly immediately, they improved visibility into waste across the entire enterprise, extending beyond their cloud footprint.
“By implementing better tagging practices, we can assign unused services to the business while establishing and enforcing policies across all resources for accurate chargebacks and reporting,” said Thomas.
He has found that improving processes to identify waste, such as orphaned resources, rightsizing and reservations, typically uncovers 10-30% overspend, thereby offering quick cost-reduction opportunities.
Thomas noted that a secondary use case that continues to emerge in more mature FinOps deployments is the discovery of more efficient workflows.
“FinOps thrives when finance, engineering and business units collaborate, whereas treating FinOps as an IT-only or finance-only project limits impact,” said Thomas
This requires setting clear goals and accountability, along with defining KPIs like spending reduction targets and unit cost metrics. It’s also important to assign decision rights to mid-level managers to accelerate outcomes.
“Organisations are able to operate more efficiently, observe daily run rates and provide executives with a clear understanding of the unit economics of their cloud spend,” Thomas said.
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