Finance leaders share a common set of complaints about managing cloud costs:

  • We don't know what we don't know, so we don't know where to start.
  • Constantly changing infrastructure means that by the time we figure it out, it's already changed.
  • Even when we know where we're spending, we don't know how changing that spending might impact engineering operations.

Unfortunately, failing to resolve these challenges doesn't just cost money today — it creates downstream problems: inaccurate forecasts, overstated margin assumptions, and uninformed pricing decisions as the business scales.

Macro Focus Misses Micro Opportunities

Preventing these business-crippling problems is fundamental to Cloud FinOps, and it starts with a clearer understanding of how cloud dollars are actually being allocated.

Many companies don't evaluate their cloud spending at a granularity that aligns with their ability to take action. When costs are aggregated at the organizational level while spending decisions are being made by individual teams or employees, there's a disconnect between the data and the people who can actually change outcomes. When cost concerns arise, there's no clear accountability for resolving them.

How far to drill down into your cloud bill depends on the structure and division of responsibility within your organization. Ask yourself:

  1. Are there line items in your cloud bill aggregated in ways that hide where usage or costs are actually coming from?
  2. Do you have a clear separation in cloud costs between product/service delivery and investment/R&D?
  3. Can you report unit costs (cost-per-usage/volume) and derive unit margins for all cloud services or products?
  4. Can you forecast unit costs and derive unit margins in scenario planning and what-if analyses?

People Will Resist. Keep Moving.

Answering these questions is a start, but real change will be driven by your people — and people tend to think they are too busy for change. In practice, "too busy" often translates to "too afraid of what will be found when you dig deeper."

Most conversations about cloud spending start with questioning why costs are so high and which infrastructure decisions drove the increase. Even when those decisions were deliberate and justified, people still react defensively to protect choices they made to deliver on their assigned objectives.

What they hear is that you're changing the rules by asking about cost and efficiency.

They will resist. They will resist adding responsibilities that don't align with their current objectives. They will resist gathering the data that unlocks cloud spending visibility. They will resist tagging and mapping exercises that reveal how costs are allocated. They will resist speculation about how future work will impact costs.

None of this is because they don't believe in FinOps. It's because they fear being told they're wrong, asked to jump through more hoops, or expected to do more with less.

This discomfort is actually a good sign. Added visibility may create added vulnerability — but it also creates added accountability.

The problem is that "accountability" has historically been used to criticize and cut resources. With FinOps, accountability means ownership. You want your people to have full cost and operational understanding so they can own and be the heroes of the efficiency and cost-savings story.

Getting there requires changing the expectation: people should be able to see and measure the value their work brings to the organization and its customers. When they can, those are the people who get recognized, who are chosen to solve big problems, and who are first in line for advancement. When others see that, they'll join the effort — or find an organization where they can work without being accountable for waste and results.

Accept Where You Are, or Change

If your organization is too resistant to FinOps concepts, it may not yet be possible to start in earnest. Cost-cutting cycles and best-guess decision-making can mask the twin realities of rising costs and shrinking margins — at least for a while.

But high-performing organizations will eventually stop accepting that defeat. When they do, FinOps practices will fundamentally alter decision-making and improve margins, transforming cloud infrastructure from a cost center into a profit engine.


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