The Technical Advisory Council (TAC) of the FinOps Foundation has started a process to review the FinOps Framework, incorporating recommendations from various participants. As the first outcome for 2024, a new definition for the term FinOps has emerged. In this article, we will discuss the details of this definition change.
Since its establishment in 2019, the FinOps Foundation has witnessed significant growth in the community involved in cloud management strategies. With this growth came a wave of new propositions, questions, strategies, and solutions. In line with this dynamism, the Foundation has been analyzing the suggestions and requests presented, implementing continuous improvements in the FinOps Framework (a topic that will be explored in future articles).
The Previous Definition, Approved by the TAC in November 2021, was as follows:
"FinOps is an evolving financial management discipline and cultural practice in the cloud that enables organizations to derive maximum business value, helping engineering, finance, technology, and business teams collaborate on data-driven spending."
The New Definition is as follows:
"FinOps is an operational framework and a cultural practice that maximizes the business value of the cloud, enables timely data-driven decision-making, and creates financial accountability through collaboration among engineering, finance, and business teams."
The term "Discipline" has been replaced by "Operational Framework."
The FinOps Framework is now recognized as an operational model. This framework is not specific to any type of organization and can be viewed as a set of building blocks that can be adapted and organized according to the specific characteristics and needs of the business.
In previous years, organizations have become familiar with the concept of FinOps and its importance, and now the focus is on implementation and achieving results. As an operational framework, FinOps aims to ensure that the expected outcomes are achieved.
Removal of the Term "Cloud Financial Management"
"FinOps" is now a widely recognized and sought-after term on the Internet. Previously, terms like "Cloud Financial Management" and "Cloud Cost Management" were competing with, and even surpassing, the term "FinOps" in Internet search results. This has changed, giving the term FinOps its own identity that has replaced the others, eliminating the need for association.
Conclusion
The changes we are witnessing are happening at an extraordinary pace. The commitment of the FinOps Foundation to adapt to these changes, ensuring its alignment with the trends and goals of the audience involved in optimizing value through cloud architectures, provides a sense of confidence in the robustness of FinOps for all stakeholders in this area.