FAQCloud Financial Management (FinOps)

    Cloud Financial Management (FinOps)

    Cloud cost optimization and FinOps practices

    What are the non‑negotiables for cloud allocation?

    Maintain an allocation strategy with clear groupings and hierarchy; Enforce tagging/labeling coverage; measure tagging compliance % = compliant cost ÷ total cost × 100; Allocate shared costs with fair drivers (e.g., data egress %, link, support).

    Which FinOps priorities and trends matter in 2024--2025?

    The FinOps Foundation highlights shifts toward waste reduction, commitment management, and accounting for AI workloads; the 2025 framework evolution adds clarified scopes/personas. Independent reporting also shows widespread cloud cost visibility challenges fueling FinOps adoption.

    How do we operationalize FinOps with TBM?

    Use TBM taxonomy for towers/cost pools, FinOps for tactical cloud optimization (rightsizing, RIs/SPs, scheduling) and governance at sprint/PI cadence (commitment boards, budget guardrails). Forrester defines CCMO capabilities (visibility, allocation, forecasting) consistent with this convergence.