In the medical field, when a health issue ceases to manifest in isolation and begins to repeat with similar symptoms among an increasingly larger number of patients, that previously unpredictable ailment becomes a disease and is labeled with specific terminology. Drawing a parallel, one could say that FinOps is the name the industry has given to address the ailment of technology underperformance in organizations and its implications for business. But here arises the paradox that FinOps is presented to us simultaneously as both an antidote and a cure.
Comparing this situation to a medical issue, addressing a disease effectively requires understanding its causes and roots instead of focusing solely on the symptoms. However, FinOps, as it stands today, lacks the necessary experts to undertake this task. Introducing financial aspects into this equation acknowledges the ailment as chronic, making it seem more about managing the costs it entails rather than striving to eradicate it. This chronic ailment notion is pertinent because the surge of cloud technology has exacerbated the challenges of technological underperformance, as many organizations have embraced digital transformation strategies without adequate preparation and a comprehensive grasp of all the associated costs.
From my perspective, and I believe this reflects the sentiment of many professionals, FinOps, as currently oriented, may be viewed as a new challenge rather than a solution. These additional costs have pushed the industry to analyze technology from a purely financial perspective, diverting it from its true purpose: a driver of strategic business direction, a mission that should guide investments in technology
An important fact is that less than 20% of major organizations in our country are effectively pursuing FinOps strategies aligned with their business goals, reflecting the lack of appropriate tools to address the root of the problem. For FinOps to be effective, it must include robust methodologies, tools capable of tracking and rectifying errors and identifying cost-saving opportunities, all supported by qualified professionals.
Loss of Control
The tremendous complexity of cloud architectures has turned this environment into a real headache for many organizations struggling to manage it. This also leads to a progressive loss of control over their own technology in favor of cloud providers, hyperscalers, and third-party companies—actors who, paradoxically, encourage the adoption of FinOps.
In fact, the complexity of various coexisting cloud architectures has significantly increased the cost of operation and exploitation, as numerous organizations have shifted from internal models of cohesive, system-focused teams to a predictable cost model, relying on “experts” in one or more specific architectures but lacking a comprehensive view of the organization’s entire infrastructure. This results in external companies proposing and providing these experts,
leading to increased costs, a loss of control in operations, and, in many cases, even the creation of new infrastructure tasks that the organization itself is unaware of.
As experts in performance, our estimation is that companies are incurring approximately a 45% cost overrun in their cloud migration projects due to the replication of inefficiencies in this environment and the hidden costs of cloud services. This “ailment” is due to the absence of a genuine culture of performance, which, much like in medical practice, identifies, analyzes, measures, and efficiently corrects any dysfunction. Until this methodology exists and is rigorously applied, the hidden costs of cloud services will continue to emerge unexpectedly, reflecting unforeseen processing spikes caused by the high complexity of the environment and the need to bid at high prices and rush to hire specialized professionals who are scarce in the market to resolve the situation, leading to the next incident.
Undoubtedly, organizations are facing a significant challenge, and as technology evolves and becomes more complex, it’s crucial to seek effective solutions instead of solely focusing on cost management. Once again, using medical terminology as a reference, in the face of a serious problem, maintaining hope and seeking additional professional opinions can make a difference in an organization’s life.
Ángel Pineda, CEO de Orizon
