In this episode of The New Stack Makers podcast, Uma Daniel, a product manager at UST, discusses the current complexities in the global economy, marked by low unemployment except in the tech industry, high inflation, high interest rates, a volatile stock market, and the looming threat of recession. Amid these challenges, organizations are seeking ways to enhance their operational efficiency.
Daniel introduces the concept of FinOps, which goes beyond just managing cloud costs. Instead, it focuses on leveraging the cloud to generate revenue. This represents a cultural shift in many organizations, emphasizing the need for a mindset change across different departments, including business, finance, and procurement.
She dispels misconceptions, such as the belief that only certain teams should be involved in the FinOps process. Daniel stresses that it's a collaborative effort involving various teams, and it's best to adopt FinOps at the beginning of a cloud journey. Once an organization is already established in the cloud, implementing FinOps becomes more challenging.
To foster collaboration, Daniel suggests identifying team members willing to champion FinOps and forming cross-functional teams to lead the initiative. Regular committee meetings and the establishment of generic policies, such as project budgets, help control cloud spending.
This episode, hosted by Heather Joslyn, provides insights into how to initiate and implement a FinOps strategy and highlights common ways in which organizations waste cloud resources.
Learn more from The New Stack about FinOps and UST:
Cloud Cost-Unit Economics — A Modern Profitability Model
What Is FinOps? Understanding FinOps Best Practices for Cloud
Very Large Enterprises Need a Different Approach to FinOps
The New Stack Podcast