Cloud Economics or Cloud FinOps: what is it and why your department needs it
Cloud computing has been the buzzword for the past decade, and most of you have probably heard about its cost-efficiency, scalability, and agility. But have you ever stopped to think about what makes the cloud economically advantageous?
Welcome to the fascinating world of Cloud Economics.
Written by Michael Kubik Delivery Lead for Cloud at Blue Crystal Solutions.
Cloud Economics, often called FinOps or Cloud Financial Management, is the practice of understanding the financial impact of cloud usage within an organization. It’s not just about reducing costs; it’s about optimizing your cloud investments for better business outcomes. In simpler terms, it’s the ABCs of managing your cloud spending effectively.
The Three Pillars
- Visibility: The foundation of Cloud Economics lies in having complete visibility into your cloud usage and associated costs.
- Optimisation: Once you know where your resources are going, the next step is to fine-tune those investments for better efficiency.
- Governance: The final pillar involves putting policies and processes in place to maintain this optimization over time.
Why Does It Matter?
In the ever-dynamic landscape of business, time is money, and resources are precious. Therefore, understanding the economics behind your cloud investments can make or break your bottom line.
- Cost Management: The pay-as-you-go model can be a double-edged sword. Without effective management, costs can spiral.
- Resource Allocation: Effective Cloud Economics helps in allocating resources where they are most impactful.
- Strategic Planning: With better financial understanding, organizations can make data-driven decisions for future investments.
How Does It Work?
- Budgeting & Forecasting: Create a cloud budget in alignment with your business objectives.
- Cost Allocation: Assign cloud costs to specific departments, projects, or business units.
- Monitoring & Tracking: Use tools to continuously monitor usage and expenditure.
- Reporting & Analysis: Analyse the data and look for opportunities to optimise.
- Policy Enforcement: Implement governance protocols to sustain the benefits.
Cloud Economics In a Nutshell
Cloud Economics isn’t just an IT concern; it’s a business imperative. Whether you’re part of a startup or a multinational enterprise, understanding the economic implications of your cloud usage is key to making smarter business decisions. So stay tuned for our next blog post, where we’ll delve into the specific benefits your organisation can reap by mastering Cloud Economics.
Our aim is to deliver concise, actionable insights, perfect for busy people like you – cheers to smarter spending and smarter business!
Contact us to learn more about our Cloud Economics Service and what benefits you can gain for your organisation. Need help with your cloud journey or managing it? We can help there too.
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About our partner
Blue Crystal Solutions
Australian-owned and operated, we have been experts in Cloud, Applications, Databases, and IT Infrastructure since 2004. We empower Governments with cutting-edge technology to maximise your security, efficiency, productivity, and growth.We understand how local, state and federal government policies and regulatory and privacy requirements need to be implemented to protect data and information. Our services use tools and AI to improve client operations and provide rapid delivery of solutions while managing costs and performance. Our vast range of services are designed to help Government agencies transform digitally to improve the lives of their customers and citizens. Whether it’s accessing our Cloud Services to accelerate your cloud adoption – from architecting and migrating ICT workloads to the cloud to the re-architecting or repurposing of legacy applications or having your data stored and managed in the best environment for you through our Database Managed Services, we can help you. Supported by a holistic and personal approach to solving business problems, we ensure our service delivery is aligned with your agency’s overall business strategy. With security at the forefront of everything we do, we can work with your cyber teams to improve your security posture significantly. Whether it’s delivering to cyber recommendations or providing an audit of your current risks that helps you understand your security and resilience, we can help you protect what matters most to your organisation.You can also rest assured that all your services with us are protected from event and service outages by our 24×7 monitoring tool, BlueDiamond. Harnessing our technology partner ecosystem, we collaborate with you, your team, and your wider organisation to deliver best-of-breed IT solutions. We can help you get to your 'next'.
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