Clear Skies Ahead: Embracing FinOps for Cloud Cost Optimization

Three years on from the pandemic, organizations across the US, UK and Canada are confidently embracing more sophisticated cloud technologies to drive ever-greater innovation – and they are reaping the benefits. Notably, cloud computing has rapidly become an essential component of enterprise IT strategies in 2023, facilitating the modern-day working infrastructures we know today.

Clear Skies Ahead is the first part of Aptum’s 2023 Cloud Impact Study, which polled 400 senior IT professionals to understand the business drivers behind their cloud computing infrastructure and the successes and challenges they face.

This year’s study offers valuable insights into the current state of cloud adoption and management and highlights the increasing importance of hybrid cloud architectures for driving innovation and growth.

In fact, our survey indicates the majority of IT leaders have successfully harnessed the business value offered by cloud technologies, with 94% of respondents reporting expected efficiencies within their organizations. While this marks a notable increase from the previous year, there are challenges ahead.

The Complex Cloud Landscape

While organizations are increasingly adding cloud services to their technology stack, a mere 20% of IT leaders have a comprehensive approach to cloud management and costs. This reality is particularly evident in 2023, as businesses navigate a complex landscape comprising legacy systems, private clouds, and public cloud services.

Consequently, the management and optimization of cloud resources have become critical aspects in these multifaceted environments.

The Challenge of Complexity

A key obstacle hindering the adoption of advanced cloud technologies is complexity. Many organizations admit to lacking visibility of cloud costs and performance, impeding their ability to accelerate cloud adoption.

A significant majority (over 60%) of respondents noted the desire to expedite their cloud initiatives but cited a shortage of internal expertise as a major roadblock. This echoes a similar challenge faced by 70% of respondents in the 2021 study.

Avoiding Unforeseen Cloud Costs

Cloud computing has presented organizations with a significant challenge – an unanticipated increase in IT spending. According to our survey, 73% of respondents reported higher-than-anticipated cloud costs, up from 57% compared to last year’s survey.

To counteract this, 34% of respondents have prioritized improving cloud analytics and reporting for the upcoming year. By implementing FinOps, 51% of respondents highlight that their cloud investment will actually help them reduce overall IT costs .

Unlocking FinOps for Cloud Cost Optimization

FinOps can provide valuable insights into cloud spending patterns and help identify areas where costs can be optimized allowing them to make informed decisions on how to allocate resources more effectively.

By adopting FinOps, organizations can reduce cloud costs by as much as 30%.

It gives them the power of greater visibility and control over their cloud costs. IT leaders can plan and optimize cloud consumption more effectively, driving cost savings and improved financial management.

By aligning financial goals with cloud usage, businesses can allocate resources more efficiently, identify cost-saving opportunities, and drive innovation.

Clear Skies Ahead

While the adoption of cloud technologies continues to deliver tangible business value, organizations must address the challenges that accompany their utilization. As complexity grows, ensuring comprehensive cloud management and cost optimization becomes increasingly crucial.

By embracing FinOps practices, organizations can navigate the intricate cloud landscape with greater efficiency, gaining visibility into cloud costs and unlocking significant savings. With FinOps as a guiding principle, businesses can seize the full potential of cloud technologies, driving innovation and achieving sustainable growth in the years to come.

Read the first part of Aptum’s 2023 Cloud Impact Study to learn more about why optimizing your cloud investment is a critical aspect of managing a successful business in the modern digital landscape.