THE FINOPS REVOLUTION


cloud investments. For example, a FinOps team may determine that services are over-provisioned on a specific type of compute resource and recommend scaling back the number of resources used to save costs.


Among FinOps’ key benefits are improved utilization of the cloud’s resources—including compute power, memory and network—and reduction of costs traditionally associated with dedicated hardware in legacy IT environments. FinOps also:


• Enables better-informed decision-making to reduce waste associated with inefficient resource purchases.


• Provides better visibility of cost and utilization of resources across all departments, allowing for easier management and optimization.


• Offers increased ability to adapt quickly through faster deployment times.


• Increases transparency and accountability with detailed metrics collection.


• Ensures improved communication among departments.


• Features assessment process automation for faster settle- ment timelines.


• Provides real-time insights powered by artificial intelli- gence algorithms.


FinOps’ key performance indicators offer empirical proof, boost- ing compliance levels.


FINOPS AT PEO EIS Between 2019 and 2021, PEO EIS successfully migrated its GFEBS, Army Enterprise Systems Integration Program Hub, and Logistics Modernization Program to the cARMY cloud.


After several months of struggling to budget for the variable cloud service costs accurately, PEO EIS team members devoted resources to implementing best practices to improve cloud consumption—specifically via FinOps.


Cloud computing contracts are often easier to manage with the proper tools. PEO EIS put FinOps in place to effectively manage cloud computing contracts by integrating various technologies, processes and best practices. One of the critical components FinOps recommends is leveraging robotic process automation. Leveraging automation in cloud computing helps


THE FUTURE OF FINANCIAL MANAGEMENT


Financial operations are no longer handled the old-fashioned way. The federal government, including the Army, is slowly adopting FinOps—an evolving cloud financial management discipline that helps organizations manage their spending on cloud infrastructure and service responsibly. (Photo by Tima Miroshnichenko, Pexels)


application owners save time, reduce costs and execute service- based contracts more efficiently.


Another way FinOps has helped PEO EIS manage its cloud contracts is via cost optimization and expense management tech- niques. Te framework enables optimized spending by creating and managing budgets, optimizing resource use, setting up alerts and analyzing cost trends.


By using FinOps to continuously monitor cloud expenses, PEO EIS has maximized the value of cloud infrastructure resources and services for the Army. In fiscal year 2022, the organiza- tion avoided $15.3 million in cloud infrastructure costs and achieved $11.3 million in cost savings. Te financial benefits were generated by intelligent procurement and optimization actions implemented across the organization on the CAMO contract vehicle.


Leveraging FinOps tools that provide utilization visibility can help organizations calculate the financial risks of storing resources and data in the cloud. In the case of PEO EIS, the


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Army AL&T Magazine


Summer 2023


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