5 Cloud FinOps Myths Busted: Save 30% On Cloud Spend

The cloud is amazing. It’s scalable, flexible, and it will transform your business. But to be honest, it’s also a Bermuda Triangle in terms of keeping costs under control. Research by Raconteur reveals that 76% of businesses exceed their cloud budget, while Flexara’s surveys indicate an eyewatering 30% of cloud spend is wasted. If your company is facing similar issues, you’re not alone. That’s why there’s Cloud Finops.

What is Cloud FinOps?

What if there was a way to bring everyone together to make better choices about using the cloud? A way to drive overall organisational performance while keeping costs under control? That’s where Cloud FinOps comes in. 

Pioneered by disruptors like Airbnb, Cloud FinOps is a cross-functional approach that unites IT, DevOps, finance, and business teams to optimise cloud usage and spending. FinOps helps companies move beyond reactive, siloed, cost-cutting-focused Cloud Cost Management strategies by lasering in on collaboration and shared responsibility.

What are the 3 pillars of Cloud Finops?

  • Inform: Gain visibility into cloud spending, budget accurately, and forecast future costs
  • Optimise: Use automation and cloud cost management solutions to reduce waste and optimise resource utilisation 
  • Operate: Continuously monitor and refine cloud processes for efficiency and alignment with business goals

Why has Cloud Finops gained traction?

The global pandemic triggered a mad dash to the cloud. In their haste, many applications were simply “lifted and shifted” without proper optimisation. This lack of foresight is now haunting businesses as cloud usage matures, leading to spiraling costs.

It’s why CFOs like Skye have raised the bar, requiring greater transparency and detail in cloud cost reporting and cost drivers. But FinOps isn’t just about the numbers; it’s about spreading the responsibility for cloud costs across IT, DevOps, and other cross-functional teams to drive greater business value.

The benefits of implementing Cloud FinOps

  • Reduced cloud computing costs: Identify and eliminate wasteful spending, potentially saving up to 30% on cloud bills
  • Improved financial performance: Cost savings directly translate to increased profitability
  • Better decision-making: Data-driven insights enable informed resource allocation and investment choices
  • Increased transparency: Clear visibility into cloud spending fosters team accountability and trust

Five Cloud FinOps myths busted

Cloud FinOps myths are like gremlins – feed them after midnight and they’ll multiply, haunting your cloud bills with terrifying consequences. It’s time to shed some light on these pesky critters.

Myth #1: One tool to rule them all 

“If we find the perfect FinOps tool, all our cloud cost problems will disappear.”

Myth. Busted: Healthy Cloud FinOps strategies focus on building a “toolbelt” of complementary solutions to provide visibility, data-driven insights, and actionable recommendations for optimsing cloud spend.  

For example, tools such as nOps and CloudCheckr offer detailed cost analysis and resource optimisation. Finout and ProsperOps, on the other hand, streamline collaboration and automate cost-saving actions. 

Myth #2: FinOps is IT’s problem 

“Cloud cost optimisation is a technical challenge. Leave it to the techies to figure it out.”

Myth. Busted: Cloud costs aren’t just an IT thing anymore; they’re an all-of-us thing. To work, FinOps has to be a team sport, depending on everyone being on the same page about financial accountability.

Who Needs to Play on Your FinOps Team:

  • Finance and Accounting
  • IT and Engineering
  • Product and Project Management
  • Executive Leadership

Myth #3: The cloud is inherently cheaper

“We can bank on saving money by moving to the cloud, right?”

Myth. Busted: Yes, the cloud offers cost efficiencies like lower infrastructure overheads and pay-as-you-go pricing, but without management and optimisation, cloud costs tend to spiral.

Factors that drive up cloud costs:

  • Overprovisioned resources 
  • Idle or orphaned resources
  • Data transfer fees
  • Pricing complexity and variability

Wherever your organisation is in the FinOps lifecycle (Crawl, Walk, or Run), achieving a cost-efficient cloud is an ongoing process of continuous improvement.

Myth #4: We’re not big enough for FinOps 

“We run a tight ship with small teams. FinOps isn’t worth the investment.”

Myth. Busted: FinOps is a game-changer for SMBs.

  1. Curb cloud costs before they soar
  2. Align cloud spending with business value and strategy 
  3. Make informed decisions about cloud investments 
  4. Foster a culture of cost awareness and accountability 

Even if you’re an SMB with a limited cloud budget, start by gaining visibility into your cloud spend. Then, gradually build up your FinOps muscle over time.

Myth #5: Cheap enough is good enough

“Let’s go with the lowest price sticker and be done with FinOps.”

Myth. Busted: Unfortunately with FinOps, you get what you pay for.  

  1. Poor performance = lost productivity 
  2. Unreliability = unhappy customers 
  3. Missing features = missed opportunities 
  4. Hidden costs = budget surprises 

The difference between FinOps and FinOops

Think of Cloud FinOps as teamwork for cloud spending: it helps tech, finance, and business teams collaborate to make intelligent choices about using the cloud so your business can get the most value without breaking the bank.

FinOps

FinOops

😇 Do assemble a cross-functional FinOps team 😈 Don’t try to do it all alone
😇 Do start small and iterate 😈 Don’t wait until cloud costs explode
😇 Do make cloud costs transparent 😈 Don’t keep engineers in the dark
😇 Do choose the right tools for the job 😈 Don’t expect one tool to solve it all
😇 Do continuously monitor and optimise 😈 Don’t treat cloud costs as isolated expenses; consider them strategic investments.

Need free advice about the right FinOps toolbelt for you? 

We get it. FinOps can feel like a daunting task. But it doesn’t have to be. +OneX can help you build a custom FinOps toolbelt that fits your unique needs and challenges. We’ll guide you through the process, from creating a FinOps culture to selecting the right tools and implementing best practices.