Why Buying a FinOps Tool?

As cloud adoption grows, organizations often face challenges in tracking and managing cloud costs effectively. Lack of visibility leads to unexpected budget overruns, making it difficult to allocate costs accurately across departments. 

Many companies also struggle with defining clear ownership of cloud expenses, leading to inefficiencies and a lack of financial accountability. 

Sounds familiar? Learn more about Cloud Cost Management and the benefits of full cloud cost visibility and control with a structured FinOps approach.

FinOps isn’t just about cost management—it’s about collaboration. Finance, IT, and engineering teams need to work together to make informed spending decisions. However, many organizations lack the necessary workflows, processes, and tools to facilitate collaboration effectively. 

Misalignment between these teams leads to delays in budgeting, forecasting, and decision-making, resulting in suboptimal cloud investment. 

With transparency into all aspects of cloud-related operations, including detailed reports, real-time data insights and resource allocation, FinOps allows you to make informed decisions and implement right-sizing practices to make more accurate forecasts. 

Without real-time insights and automated alerting processes it’s very difficult to stay on track, make informed decisions and adjust forecasts as needed—so your cloud strategy stays aligned with your business goals. 

Assessing the return on investment (ROI) for a FinOps solution isn’t always straightforward. Here are the key benefits organizations can gain: 

Enhance Cost Efficiency 

• Identify and eliminate wasteful cloud spending. 

• Automate cost-saving measures, such as rightsizing instances and leveraging discounts. 

• Implement real-time budget tracking to prevent cost overruns. 

Improve Financial Accountability 

• Allocate cloud costs accurately across business units and teams. 

• Enable showback and chargeback models for better cost transparency. 

• Empower engineers to take ownership of cloud spending decisions. 

Strengthen Cloud Governance 

• Establish policies for budget control and cloud cost forecasting. 

• Ensure compliance with financial and operational policies. 

• Gain executive buy-in with data-driven cloud investment strategies. 

To estimate the economic benefit of a FinOps solution, use a simple calculation:
saved cloud costs + improved productivity - tool cost. 

The FinOps landscape is growing rapidly, making vendor selection a challenge. Here’s a breakdown of different solution types to help narrow your search: 

Enterprise-Grade FinOps Platforms: Designed for large organizations with complex cloud environments and a need for advanced analytics, automation, and governance. 

Cloud-Native FinOps Tools: Typically offered by cloud providers (e.g., AWS Cost Explorer, Azure Cost Management), these tools provide built-in capabilities but may lack cross-cloud visibility. 

Best-of-Breed/Niche FinOps Solutions: Specialized tools focusing on specific FinOps capabilities, such as real-time cost monitoring, anomaly detection, or automated savings recommendations. 

You’re still in the problem identification phase, so no need to rush. Your goal is to raise awareness and explore the opportunity rather than push for immediate approval. Here’s how to move forward: 

1. Identify the key cloud cost challenges your organization faces. 
   
   
2. Estimate potential savings by implementing a structured FinOps approach. 
   
   
3. Validate findings with stakeholders in finance, IT, and engineering. 
   
   
4. Present your case to leadership to gain buy-in for the next steps. 

Taking a step-by-step approach will help you build a strong business case and secure internal support.