Manage, Measure, and Control Cloud Expenses Using FinOps

Balance Cloud Costs and Business Goals with FinOps Service Offerings

Why FinOps?

FinOps brings financial accountability to the variable spend model of cloud, enabling distributed teams to make business trade-offs among speed, cost, and quality. In practice, it means establishing performance indicators for an organization’s cloud costs based on service, business unit, environment, etc., and diagnosing the organization’s consumption based on these indicators.

Top 7 FinOps Adoption Related Challenges

Here are the top 7 FinOps adoption related challenges that many encounter.

Getting Engineers to act on cost optimization

Accurate forecasting of cloud spend

Organizational adoption of FinOps

Enabling automation

Reducing waste or unused resources

Aligning finance/procurement teams with tech/eng teams

Full allocation of cloud spending

FinOps - Key Drivers

Reduce wasted cloud spend

32% of total cloud spend is wasted spend.

Cost Management across multiple clouds

89% organizations are using multiple clouds resulting in increased demand for cost optimization Initiatives.

Strong demand from end customers to optimize cloud spend

59% of organizations have cost savings - cloud spend optimization - as their top cloud initiative.

Operating Model changes arising from increased cloud spend

IT and Finance teams need to operate more efficiently together to support the agility of the business and pro-actively monitor and react to cloud spends.

Key Benefits

Gain visibility to control costs

Drive accountability for cloud spend

Simplify cloud budget management

Identify optimization opportunities & automate tasks

Accelerate fulfillment requests

Enable data driven decision making

FinOps - KPIs/Metrics

FinOps relies heavily on key performance indicators. FinOps KPIs are used to gain visibility and a metric perspective to streamline the cost-controlling process. Cigniti’s FinOps KPIs can be broadly classified as follows.

Cloud Visibility KPIs

Rightsizing savings percentage
Effective cost per resource
Production incidents by application/team
Reverted cloud deployments
Mean time to repair or mean time between failures
Number of security lapses in a month
Number of assets that don’t meet configuration standards

Cloud Optimization KPIs

Rightsizing savings percentage
Effective cost per resource
Production incidents by application/team
Reverted cloud deployments
Mean time to repair or mean time between failures
Number of security lapses in a month
Number of assets that don’t meet configuration standards

Cloud Governance and Automation KPI

Cost optimized over time
Cost optimized per policy over time
Time saved as a result of policies
Number of reservations automated
Time to remediate security violations
Resource based commitment discount target coverage
Service availability
Time to deployment

Cigniti FinOps Service Offerings

Inform
Visibility & Allocation

FinOps Maturity Assessment

Cloud Health Check

FinOps Diagnostic Services

Operate
Continuous Improvement & Operations

FinOps CoE

FinOps Operating Model Design

CMP tooling service native & specilaized tools

Optimize
Utilization

FinOps as a Service

Cloud Cost Optimization services

FinOps Practitioner Staff Aug services

Key Enablers

Cigniti Cloud CoE

Cigniti FinOps Practitioners

Partner tools native CSP & Niche CMP tools

Cigniti FinOps solutions, utilities & accelerators

Cigniti FinOps Business Model Options

FinOps Consulting & Implementation Partner

Cigniti to be positioned as independent FinOps consulting and tool implementation partner with capability in all native cloud cost optimization tools and leading independent CMP/FinOps tools.
Customer to be charged for consulting and tool implementation services based on the agreed engagement model T&M, fixed price, etc.
CMP/FinOps tool license cost should be borne by customer
FinOps operations post initial consulting and implementation to be managed by customer team

FinOps as a Service

Managed service option that includes Cigniti consulting and implementation services + Cigniti white labelled CMP platform or CMP tool of choice by customer
Customer to be charged monthly factoring the license cost of CMP platform and consumption of Cigniti services cost
No upfront investment in CMP/FinOps tool license cost by customer
FinOps operations will be supported by Cigniti team

Gain Share Model

Includes Cigniti consulting and implementation services + Cigniti white labelled CMP platform
Customer to be charged a small percentage of the actual cloud cost savings
No Sunk cost. No upfront investment in CMP/FinOps tool license cost by customer

Cigniti’s Assurance to Customers

FinOps is a practice that brings financial intelligence and realization of an organization’s cloud spending.
Here are some of the assured benefits for the customer.

Cloud cost savings result in better RoI from cloud investments.
Wasted cloud spend reduced up to 95%
Cigniti Consulting led FinOps tool/CMP centric PoC quickly proves benefits and builds FinOps business case
Pricing Model based on reduced cloud spend
Improved FinOps operating model with better outcome