Tangoe announced the release of a 2023 Study:
"Maximizing FinOps Programs," a survey conducted by Foundry and commissioned by
Tangoe. The research focuses on the critical aspects of managing cloud costs
and best practices for maximizing resource utilization, achieving cost savings,
and establishing more financial predictability. According to the survey,
enterprises activating a FinOps model using AI-powered software are 53% more
likely to report an overall cost savings of greater than 20%. In contrast, companies
who do not use AI average less than 10% in cost savings.
Covering a
wide range of FinOps issues, the study investigates the challenges that make
FinOps a necessity, the top FinOps use cases, the benefits of these programs,
the value of AI-enablement, and how to select a solution or service provider. A
few highlights of the survey include:
- Companies
using third-party software and services realized a 20% cost savings on
average, while DIYers save less than 10%.
- The
top areas benefiting from FinOps are productivity savings (46%), cost
savings (43%) and reduced security risks (43%).
- Top
three drivers for adopting FinOps/cloud cost management programs:
- Increasing
cloud resource production and performance (70%)
- Reduced
budgets (60%)
- Rising costs
(58%)
- Companies
using AI-enabled tools within FinOps cite benefits including ease of
program management (50%). More than half (54%) cited challenges in
building the right process and human support systems for FinOps.
- Service
utilization and rightsizing services are among the highest priority use
cases for FinOps in general with nearly two-thirds (65%) using it for this
purpose.
"Reliance on cloud services is nearly universal, but for
companies to achieve cloud ROI, they must quickly gain complete visibility into
service utilization and be able to precisely match cloud resources with
business needs in order to reduce unnecessary spending," said James Parker,
CEO, Tangoe. "Business leaders need real-time dashboards that connect IT
operations, finance, and cloud financial management data in one platform,
taking advantage of AI to deliver actionable insights. Our FinOps survey
demonstrates the challenge businesses face in trying to develop these
capabilities themselves, especially given the need for AI and expense management
expertise."
Download the Report
Maximizing FinOps Programs: How
AI and Best Practices Elevate Savings