FinOps scope

FinOps now applies beyond the public cloud. The FinOps framework has expanded its operating model to cover various technology spending areas.

FinOps roles apply the framework to manage public cloud costs and the cost and usage data for other services, such as Software as a Service (SaaS) and data center infrastructure. This approach promotes collaboration and timely decisions across the organization.

Public cloud

In the public cloud, FinOps practices help organizations control costs and maintain innovation by introducing financial transparency, improving team collaboration, and establishing cost accountability. These practices align cloud costs with business goals. Most organizations start their FinOps journey in the public cloud.

SaaS

The challenges of managing public cloud spending also apply to SaaS. A surge in SaaS purchases, often made by separate teams or individuals with company credit cards, reduces visibility into costs and usage. SaaS pricing models also vary, and include license-based fees, per-user or per-device billing, tiered pricing, pay-as-you-go, and flat rates. By applying the FinOps framework, organizations can bring financial transparency and cost accountability to SaaS spending.

Data center

For data centers, FinOps teams shift from a traditional prepaid procurement model to a consumption-based cost model and develop on-premises infrastructure strategies. FinOps practitioners work closely with core and related roles to break down the traditional silos between finance, procurement, and technology teams. This fosters a culture of collaboration and data-driven decisions, which improves strategic planning, cost analysis, and optimization. Using the framework, teams that manage on-premises infrastructure can think beyond hardware. They can strengthen migration strategies, optimize workload deployments, and improve the data center's unit economics.

For organizations with business operations beyond cloud computing, the FinOps principles of team collaboration and data-driven decision-making can increase cost awareness. These principles encourage teams to consider resource use, workload deployment, rate optimization, and product feasibility from the start of the design process. This helps maximize business value and outcomes.