Modern businesses prioritize efficiency, which affects the methods, processes, and technologies needed to consolidate and share resources, simplify operations and measure performance. This pursuit of improved corporate efficiency fosters new disciplines that promise to alter how a business’s goals can be accomplished.
Operations, or Ops, acknowledges the methods, practices, and tools used to manage a firm. Operations refers to the departments, people, and efforts involved in running a firm, including finance, accounting, sales, and service.
In this article, we'll discuss two such Ops — DevOps and FinOps — how they differ, how they merge, and how the combination of the two benefits your business.
What is DevOps?
Out of all XOps applied in business, DevOps was the first innovation, stemming from concepts such as "development" and "operations," tied to software development. To streamline their corporate operations, many IT industries and corporations have started implementing the new DevOps culture.
DevOps is a set of principles and best practices that streamline software development, offering faster delivery without any lapses in quality compared to traditional software development paradigms.
DevOps makes use of a variety of technological instruments to automate tasks. Companies rely on the following concepts from DevOps to achieve their aims:
- Collaboration — Collaboration is the foundation of every organization. DevOps teams are comprised of personnel from different departments, with collaboration in mind rather than competition. This allows all included parties to complete their assignments within the allotted time frame.
- Automation — The team utilizes different techniques and methodologies to complete various jobs automatically in order to streamline how tasks are completed within an organization. For each department in the team, a different kind of tool is used.
- Continuous Testing — One more independent team will test the work completed by the other teams. As part of continuous testing, the testing team mentors other teams and requests improvements when necessary.
DevOps Benefits and Applications
Those who support DevOps list several of its commercial and technical advantages, many of which actually serve the customer better. These advantages include the following:
- Improved and quicker product delivery
- Reduced process complexity and faster problem solving
- Enhanced availability and scalability
- More reliable working conditions
- Better resource management
- Further automatization
- Increased transparency
- Greater inventiveness
What is FinOps?
FinOps, also known as cloud financial management, was developed as a way to address the effectiveness and quality of corporate investments and outlays. FinOps seeks to foster cross-departmental collaboration and financial accountability between the business, technology, finance teams, and engineering teams rather than only reducing expenses.
In fact, its main goal isn't to reduce cloud spending but rather to impose cloud cost management through cloud cost optimization. This allows you to increase profitability by getting the best business value out of your cloud computing for the money invested.
Based on the data provided, cloud financial operations teams then try to right-size the cloud budget to achieve the best possible mix of performance, quality, and affordability for business workloads and services.
Although practically any business challenge can benefit from using FinOps' logic and methodology, this discipline has primarily been used to analyze the economic benefits of cloud computing and various cloud services.
FinOps is ultimately a method of handling cloud complexity. A public cloud has a vast array of interconnected services and resources, all of which have billable expenses that can be challenging to comprehend and keep track of.
A corporation may quickly encounter unforeseen high expenses and unsatisfactory performance when it permits any developer, department head, or stakeholder to deploy and administer a task.
Benefits of FinOps and Applications
There are numerous benefits to FinOps; implementing these concepts delivers a dependable and agile approach to cloud financial management.
- Cloud Cost Optimization — Deploying cloud resources is easy, but without proper oversight, costs can soar. Cloud cost management entails modifying cloud prices. A cross-functional team with finance and technical roles will have FinOps tools, experience, and capacity to optimize expenses and underutilize resources. This cuts ongoing costs.
- Data-Driven Decision Making — Medium and large organizations with cloud installations must cross-charge and/or distribute cloud resources to the proper business unit or division. 'Tagging' AWS, Azure, and Google resources provides clarity, but only with a company-wide policy.
- Forecasting — Predictability demands solid data-gathering technology and skilled analysts. A cross-functional cloud FinOps team can comprehend data and implement proactive controls. Budgets and overspending alerts are needed for automation.
The Difference Between FinOps and DevOps
From what was previously stated, it's easy to brand FinOps and DevOps as two entirely different operations. After all, FinOps focuses on the cost and performance efficiency of cloud usage across the business. DevOps, on the other hand, refers to software development and other IT operations involved in developing and deploying software to the cloud.
But there are more similarities between the two ideas than differences. The following characteristics of both ideas are conducive to business:
- Reduced deployment time
- Cost management
- Quality and performance improvement
- Simplified troubleshooting
- Iterative lifecycle approach
- Collaborative operations teams
Both ideas relate to the introduction of business software. Although the cloud can undoubtedly be an appealing deployment target for DevOps projects, the software is often built internally and distributed to the local data center.
FinOps takes into account all software that will be used in the cloud, whether it was created internally or purchased from cloud providers. However, the intended deployment target is unquestionably the cloud infrastructure. One may argue that FinOps practitioners should be in charge of the operations aspect of a DevOps project built for the cloud.
Does My Organization Need FinOps And DevOps?
Well, the answer is yes! While it's true that your organization may not absolutely need either of these ideas, traditional approaches aren't as nearly as effective in the cloud computing environment, which can lead to potential financial losses.
So, if you want to run a successful business, using both DevOps and FinOps will help your company optimize more than just cloud computing — it will optimize the company's financial structure by introducing cost-saving measures without sacrificing efficiency and quality.
In summary, though both ideas differ in their applications, combining them will have a significantly positive impact on your business, granting you more value on a lower investment. Tenacity can provide you with total insight into your cloud expenditure, allowing you to know where your spending goes, how it is spent, and why it is spent that way. Try Tenacity's cloud cost optimization tool and get started in five minutes or less.
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