What is Augmented FinOps?

The accelerating pace of public cloud adoption has rendered it imperative for organisations of all sizes to invest in cloud cost management expertise. Citing the latest cloud forecast from Gartner, "worldwide end-user spending on public cloud services is expected to grow by 21.7%, reaching a total of $597.3 billion in 2023".

As discussed in a previous blog on cloud waste 32% of cloud expenditure is reportedly unused. Despite the rapid adoption of Traditional FinOps solutions, it is evident that organisations require more proactive technology to propel their cost-cutting efforts.

It's primarily this shift from reactive to proactive that sets Augmented FinOps apart from Traditional FinOps solutions. Traditional solutions focused on observability and reporting while addressing cost overruns and anomalies after they have already occurred. In contrast, Augmented FinOps leverages a real-time AI and ML tech stack that continuously monitors and alerts to potential deviations from strategic direction.

In the most recent State of FinOps report, nearly 30% of respondents reported that their biggest challenge was empowering Engineers to take action. In the case of Augmented Finops, artificial intelligence is implemented to empower Engineers through real-time technical guidance and support, thus helping reduce their personal impact on cloud waste without the need for communication with FinOps leaders.

It's through Augmented FinOps solutions like Morfless, that engineers can now take advantage of having a dedicated FinOps advisor that improves cloud cost decision quality in real-time. Removing the need for costly optimisation projects, instead opting for an approach of continuous improvement and reinforcement learning.

What is the difference between Traditional FinOps and Augmented FinOps?

While the desired outcomes remain consistent, the key distinction lies primarily in the time to value, as Augmented FinOps adopts a more proactive stance to achieve them.

Traditional FinOps - Focuses on aligning financial accounting with the variable cost model of the cloud. Enabling detailed visibility and reporting on cloud spend while focusing on fostering collaboration between Engineering, Finance and Technology. It provides the foundations required for organisations to have a tangible strategic conversation around cloud cost management.

Augmented FinOps: Ultimately positioned as the successor of Traditional FinOps, Augmented FinOps focuses on empowering teams with AI/ML-enabled decision-making solutions, solutions that not only suggest optimisations but also execute on their behalf.

Additionally, Augmented FinOps, was highlighted as one of six emerging pervasive cloud technologies in Gartner's recent Emerging Technologies Hype Cycle.

Augmented FinOps, which applies the traditional DevOps concepts of agility, continuous integration and deployment, and end-user feedback to financial governance, budgeting and cost optimization efforts.

Cloud development environments (CDEs), providing remote, ready-to-use access to a cloud-hosted development environment with minimal effort for setup and configuration.

Cloud sustainability, the use of cloud services to achieve sustainability benefits within economic, environmental and social systems.

Cloud-native, which refers to something created to optimally leverage or implement cloud characteristics that are part of the original definition of cloud computing, and include capabilities delivered as a service.

Cloud-out to edge, an architectural construct where a centrally managed cloud environment, typically a hyperscale cloud, provides cloud service capabilities that are extended to edge environments.

WebAssembly (Wasm), a lightweight virtual-stack machine and binary code format designed to support secure, high-performance applications on webpages.

Conclusion

In conclusion, the surge in public cloud adoption, as highlighted by industry projections, underscores the need for a proactive approach to cloud cost management. Augmented FinOps, distinguished from its traditional counterpart, is a game-changer, leveraging real-time monitoring and AI to prevent cost overruns and align with strategic planning.

Augmented FinOps enhances cross-departmental collaboration through AI, providing engineers with dedicated FinOps advisors for real-time decision-making and optimisation. Unlike traditional FinOps, it not only suggests but executes optimizations, revolutionizing the shift from retrospective correction to real-time efficiency.

While Traditional FinOps and Augmented FinOps share goals, the key distinction lies in the time to value. Augmented FinOps swiftly addresses cloud waste with AI, making it the successor in cloud cost management. Recognized in Gartner's Emerging Technologies Hype Cycle, Augmented FinOps is pivotal in guiding organisations toward a future where AI-driven solutions redefine cloud cost management. In this era of digital transformation, embracing Augmented FinOps is not just strategic; it's imperative for thriving in the dynamic realm of the cloud.

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