THE FINOPS REVOLUTION
I
n 2018, then-Secretary of the Army Ryan McCarthy made a significant decision to support the migration of the Army’s finance and logistics
systems from on-premises data centers to commercial cloud computing facilities. Since then, the cloud revolution has taken firm hold across the service, bolstered by the establishment of the Enterprise Cloud Management Agency in March 2020 and the recent publication of updated guid- ance within the Army Cloud Plan 2022.
One of the seven strategic objectives of the plan is to provide cloud cost transparency and accountability. To prevent underuti- lized services and unexpected, avoidable costs, the plan says the Army will use “a combination of enterprise-provided
common services and cloud consumption tracking for all cloud consumers.”
One still evolving cloud financial manage- ment discipline that’s slowly being adopted by the federal government, including the Army, is financial operations—coined FinOps. FinOps is an evolving cloud financial management discipline and cultural practice that enables organiza- tions to maximize business value and collaborate on data-driven spending deci- sions, employing cross-functional teams to work together to maintain financial control while also ensuring rapid deliv- ery of capability. Te concept of FinOps helps organizations manage their spend- ing on cloud infrastructure and services responsibly. It is a way of tracking and
managing variable costs. Tis makes it easier for program, technical and financial teams to work together and make intelli- gent choices about the most efficient use of funds.
Te Program Executive Office for Enter- prise Information Systems (PEO EIS), which migrated the Army’s massive General Fund Enterprise Business System (GFEBS) to the cloud in 2020 and has conducted several more migrations since then, has put a FinOps framework and practice in place over the past two years. Trough this framework, the Army is now effectively monitoring and manag- ing cloud infrastructure and services contracts related to cloud computing. Tis has proven to reduce costs, improve performance and maximize strategic cloud modernization objectives.
To manage the service’s cloud infrastruc- ture budget in years to come, the Army needs the agility and scalability that the FinOps revolution provides.
EVOLUTION BEFORE REVOLUTION As cloud computing has become more widespread in both the public and private sectors, organizations have begun look- ing for ways to leverage cloud services. Te goal is to maximize both techno- logical and cost potential. Cloud-based applications enable real-time collabo- ration among stakeholders, resulting in more efficient operations. Collaboration on cloud infrastructure and services can be accomplished through the built-in tools of cloud infrastructure service providers. Tese applications give users visibility into their cloud infrastructure to track, manage and optimize their cloud costs.
TEAM PLAYERS
The FinOps team works with cross-functional teams to maintain financial control while also ensuring rapid delivery of capability. (Graphic by the FinOps team, PEO EIS)
At a higher level, organizations need to implement cloud-based contract vehi- cles, such as the Army’s Cloud Account
66 Army AL&T Magazine Summer 2023
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