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A look back at the 2023 State of FinOps report before diving into the 2024 survey!

The annual State of FinOps report is a cornerstone in the FinOps community, shedding light on global trends, challenges, and opportunities. The 2023 report was particularly insightful, serving as a benchmark for organizations, including Devoteam, to align their practices with global standards. As we march into 2024, reflecting on the previous report’s insights and their practical implementation is pivotal in propelling the FinOps narrative forward.

Tooling questions popping up everywhere

The discourse around tooling persisted in 2023, as outlined in the State of FinOps 2023 report. Tools are vital, but the real essence of FinOps is in fostering a collaborative culture among various teams. The emergence of diverse vendors, each with a unique narrative, indicated the growing traction of FinOps. However, understanding the ‘why’ behind tooling and focusing on the broader goal of achieving financial clarity and operational efficiency should be the priority.

Reporting lines are becoming clearer

Clarification in reporting lines for FinOps practices marked a significant forward stride in 2023. The trend of IT departments leading the charge was confirmed through our interactions with customers, symbolizing a growing understanding and collaborative effort across IT, finance, business, and procurement departments. This collaborative spirit is driving a holistic approach towards managing cloud cost challenges, a positive signal for the FinOps community.

Cloud sustainability as a natural extension of FinOps

Our sustainability engagement at Devoteam underpins how adept FinOps practices contribute to reducing an organization’s carbon footprint. Being an active member of the Special Interest Group on Sustainability, we strive to stay ahead in aligning FinOps with sustainability goals. This alignment is pushing organizations towards a greener operational framework while optimizing costs, an encouraging development in the FinOps domain.

Top challenges remain the same in 2022 and 2023

One of the recurring challenges has been motivating engineers to act on the insights provided by FinOps data. Engineers are central to implementing cost-saving measures, yet the gap between providing insights and taking actionable steps based on those insights persisted. This challenge underscores a cultural shift that requires nurturing a deeper understanding and appreciation among engineers regarding the financial implications of operational decisions. It’s about evolving a culture where engineers see the value in FinOps data and are motivated to act on it to drive cost efficiencies. This cultural shift demands time, the right support from leaders, a structured approach, and continuous education and awareness to help engineers incorporate FinOps practices into their daily routine. Overcoming this challenge is a journey that requires a concerted effort from all stakeholders.

The reflection on the State of FinOps 2023 isn’t just a look back, but a validation of the global stance in FinOps. At Devoteam, we utilized these insights to assist our customers in aligning with global benchmarks, underscoring the practical value of the report.

The journey continues & grows

As FinOps as a role in IT has a growing interest so does the community grow. Since February 2023 Microsoft joined the FinOps Foundation as a member. This means Microsoft is also embracing the framework as the best way to approach cloud cost management. Since they joined more Microsoft specific information about FinOps on Azure has been published.

As we delve into the FinOps narrative of 2024, your experiences and insights are pivotal. The collective endeavor of the global FinOps community enriches the narrative, propelling the practice forward.

Let Your Voice Be Heard

Be an active contributor to this narrative by participating in this year’s State of FinOps survey. Your insights will provide valuable benchmarks, shaping the future of FinOps. Take a moment to fill out the State of FinOps 2024 Survey Share your experiences and be part of the global movement to drive better financial operations in the cloud era. Your perspective is a critical piece of the evolving FinOps puzzle, aiding us all in refining our practices and growing together in this shared journey.