McKinsey: How To Get Attention on and Value from FinOps

In this discussion, Wayne Vest, an associate partner at McKinsey & Company, focuses on technology and data strategies. He emphasises the importance of FinOps, a financial operations framework he finds crucial for managing cloud costs effectively. He stresses that while many are aware of cloud adoption and its benefits, there’s a significant gap in fully understanding and implementing effective cost management strategies.

Wayne points out the challenges organisations face in controlling cloud costs due to the shift from traditional IT budgeting to more dynamic, unpredictable cloud expenditures. Traditional annual budgets are not as effective in the cloud environment, where costs are decentralised and variable. FinOps provides a solution by offering transparency, accurate cost forecasting, and optimisation of cloud architecture. Wayne mentions that effective FinOps can lead to a 20-30% reduction in cloud spending by leveraging various optimisation levers and improving financial forecasts.

FinOps needs to be integrated into organisational culture…