- [Instructor] Of course, each business is different
and thus the requirements
for FinOps will be different as well.
So we need to determine your specific business requirements
for FinOps, including the processes, and best practices.
Fortunately, how businesses use
and value FinOps is somewhat consistent.
This includes looking at the following values
that FinOps can return to the business.
Once these values are established,
they can become the business requirements for FinOps.
This is an informative step
because FinOps can be costly to deploy and operate.
And thus, you'll find that board of directors
and other leadership are interested
in understanding what they are getting for their money.
You need to be prepared to walk leadership
through your business requirements for FinOps
and establish the business value,
the business strategy and the business purpose
in order to prove the potential
or real return of value to the business.
Things that should be considered
when determining business requirements for FinOps,
includes define the business goals for FinOps,
map the business goals for FinOps to the company goals,
acknowledge the pros and cons,
define the expected benefits,
define how results will be measured,
define the cost to implement FinOps,
define the costs for taking no action.
Let's explore each.
Defining the business value for FinOps means
that we define what we would like FinOps to do for us,
such as monitoring cloud costs,
optimizing cloud spending
and better providing information back
to key systems and people
as an example of general requirements and objectives
that define the value of FinOps.
Map the business goals for FinOps
to the company goals,
meaning that we're taking the FinOps goals
and requirements listed above
and mapping them to the business objectives
of the company.
For instance, to drive more innovation,
to drive more revenue,
to drive better customer relationships, et cetera.
Or specific quantifiable goals,
such as achieving specific revenue numbers
of EPS or earnings per share.
Acknowledge the pros and cons means
that we're honest with the pros,
meaning what benefits we can enjoy
versus the cons or the cost it's going to take
to implement FinOps practices
and technology for your business.
This is where you list risks,
such as what happens if some
of your FinOps deployment fails?
And what would need to be done?
Define expected benefits,
meaning that we're looking at the core benefits
to the business, such as value
that comes back to the business.
For example, more business agility
that leads to more innovation
that leads to more revenue, and value of the company.
Define how results would be measured,
meaning that we're going to define
what success looks like
and what failure looks like,
and how we're going to improve on these results
if they fall short.
Define the cost to implement FinOps,
meaning an honest reflection of the people costs,
the technology costs and other costs
that need to be incurred
to define a FinOps practice and technology foundation.
It's not cheap.
Define the cost of taking no action,
meaning that we're defining the state of the business
that lacks FinOps.
This includes cloud costs overruns
and surprisingly high cloud bills,
failure to support an audit,
no ability to optimize cloud spending,
and no visibility into key costs and benefits
of cloud computing.
By now you get the general idea.
We're defining, in an honest way,
what cloud FinOps can bring
and not bring to our business.
And what are the key business requirements
and business cases that we need to consider?