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Editor's Notes

• #4: Cloud is critical to success by bringing The new cloud economy has us facing some new realities in the IT world: Traditional procurement silos have broken down, buying is decentralized, and it’s only getting more so Cloud adoption, once the purview of CTOs and the location of science-fair projects now represents MATERIAL and substantial costs for many companies, and it’s only growing What you buy in the cloud is variable, it changes month to month, day to day, minute to minute. It’s not predictable, and it’s hard to forecast well using traditional methods. And with over 1M Cloud SKUs out there, it’s only getting more complex. In a cloud world of vast supply, plentiful options and few constraints on your spending, inefficiency is inevitable. But all businesses must focus on efficiency, and need the information to create it. Further, macroeconomic pressures – elections, Brexit, and the coming economic downturn (eventually there will be one) – require even more ruthless efficiency measures. Inefficiency becomes a target on IT’s back (very important) in a downturn. Luckily, there’s also a new operating model for the cloud to help address these realities.
• #6: Before I begin there is one thing that really needs to be kept in mind, FinOps is not done by the FinOps team. Where it makes sense to have a dedicated FinOps team—which we will cover below—that team drives the FinOps activities within an organization. FinOps is a portmanteau of Finance and DevOps to highlight that the goal is for these two teams to work together. I would often say: ““If I do my job properly as a FinOps Practitioner, I do not need to be in the room when Finance and DevOps teams meet. They are enabled by the work I have done to normalize the cloud bill, allocate and highlight key data points. When FinOps succeeds the business is doing FinOps.” If security if Job 0, then FinOps is Job 0.5. In the same way that everyone does security with a central team enabling best practices (at scale), everyone does FinOps with help from a central team.
• #7: FinOps as a discipline has exploded over the last 5 years, as evidenced by the explosive growth of the search term itself. When revisiting the first edition of the Cloud FinOps book, we noticed how much it used an us vs. them tone when it came to FinOps teams vs engineering teams. Some of the phrasing indicated that engineers were somehow outside of the work of FinOps and that they didn’t generally care about cost. This is far from the truth in companies who are mature in their cloud—and FinOps—transformation. Unengaged engineers who only do reactive cost optimization merely reflects an immature practice and maturity, where inefficiencies are left to occur and the FinOps process is limited to cleaning up the waste. Instead, mature practices partner with engineers on service design in order to avoid inefficiencies in the way services are deployed on cloud
• #8: To add some context to this growth, here’s a look at which organizations have invested in their FinOps practices.
• #9: Teams don’t really start until material spend is happening, Who is looking after the spend at the small size - typically it is engineers When do orgs have a dedicated FinOps team or person Sizes of dedicated folks in comparison to spend and is also normally a sign of complexity It is worth pointing out teams can be made up in different ways, ona recent virtual summit we shared how contractors and consultants are in the mix also. Check out the previous recording or the website for those details.
• #10: One of the main areas of the survey are the top challenges which are a lot closer than previously (2022 had a 10% gap from 2-5 in 2022) this year it is less than 1% gap.  Empowering Eng to take action - stayed stable as top spot Unit economics: new option tied to #2 spot tied with #3/4. 30% growth Reducing waste came up considerably 17% drop in forecasting 15% increase in container cost challenge
• #11: The FinOps Framework describes the Principles that drive our FinOps practice%s The Personas that FinOps must support as stakeholders The best practices and process models that allow us to accomplish this And the Domains of activity we will have to perform in our FinOps practice We use a Looping, flywheel lifecycle for FinOps, seeking to Inform Identify Optimization targets Operationalize those changes In a flywheel approach that starts off slow and takes a “Crawl, Walk, Run” maturity approach to solving the challenges Cloud introduces to an organization. You May have heard the Framework called the FinOps Capability Model, or the FinOps Function model previously. Updated beginning in Fall 2021, will continue to be modified as time goes on, but is largely stable as of January 2022. FinOps practitioners will perform activities in each of these domains as they build a FinOps team and drive the cultural change that FinOps brings into their organizations.
• #12: For those who maybe new or as a reminder on the Foundations mission - It is - to advance every individual who manages the value of cloud with enriching connections with community, professional advancement in training and education, and defining a clear roadmap for success with resources for all practices. This community helps create and support skilled practitioners to fill the ever expanding need of the industry.
• #18: Our funding comes from two primary sources: 1) is Training/Certification. There’s the FOCP now and also FOFE. FOFA is in development as well as persona based trainings for Finance/Execs/etc.