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Key Criteria for Evaluating Cloud FinOps Solutionsv2.0

An Evaluation Guide for Technology Decision-Makers

Table of Contents

  1. Summary
  2. Cloud FinOps Primer
  3. Report Methodology
  4. Decision Criteria Analysis
  5. Evaluation Metrics
  6. Key Criteria: Impact Analysis
  7. Analyst’s Take
  8. About Dana Hernandez

1. Summary

The cloud has become the go-to hosting platform for enterprises, with multicloud and hybrid cloud infrastructures now the norm. However, managing cloud costs is a significant challenge.

Cloud FinOps encompasses cloud financial management, an approach centered on bringing finance, business, engineering, and IT teams into closer alignment on cloud spend—the term “FinOps” in this case is viewed as a blend of “finance” and “DevOps” rather than traditional “financial operations.” FinOps enables these teams to work together to achieve faster product delivery while managing and predicting cloud costs. In addition, it allows teams to make informed decisions on tradeoffs for speed, quality, and cost. Without a strong FinOps strategy, a company may pay for services, resources, and licenses it does not use or need.

A solid FinOps solution can improve financial performance and reduce cloud costs. It can provide information and details for more informed decisions and increase transparency across IT organizations and the business. However, it is important to understand that FinOps differs from the traditional IT procurement capitalization model, in which finance identifies and signs off on costs allocated by product teams. Instead, a cross-functional FinOps team pulls together technology, business, and finance to optimize cloud vendor management, service rates, and discounting. It should also be noted that leading FinOps tools can process both CapEx and OpEx expenses.

More than a buzzword, FinOps is supported by the FinOps Foundation, a formal organization that ensures the industry delivers clear solutions and consistent definitions to establish financial accountability in cloud spending.

This GigaOm Key Criteria report details the capabilities (table stakes, key criteria, and emerging technologies) and non-functional requirements (evaluation metrics) for selecting an effective cloud FinOps solution. The companion GigaOm Radar report identifies vendors and products that excel in those capabilities and metrics. Together, these reports provide an overview of the category and its underlying technology, identify leading cloud FinOps offerings, and help decision-makers evaluate these solutions so they can make a more informed investment decision.

How to Read this Report

This GigaOm report is one of a series of documents that helps IT organizations assess competing solutions in the context of well-defined features and criteria. For a fuller understanding, consider reviewing the following reports:

Key Criteria report: A detailed market sector analysis that assesses the impact that key product features and criteria have on top-line solution characteristics—such as scalability, performance, and TCO—that drive purchase decisions.

GigaOm Radar report: A forward-looking analysis that plots the relative value and progression of vendor solutions along multiple axes based on strategy and execution. The Radar report includes a breakdown of each vendor’s offering in the sector.