Enterprises Embracing FinOps to Track, Control Cloud Costs
ISG report highlights the rising demand for FinOps platforms in public cloud migration strategies. With enterprises facing increased cloud expenses due to growth in public cloud reliance, effective cost management has emerged as a priority. The global FinOps market is projected to grow over 30% in 2022, as companies seek to optimize and oversee their cloud resource usage. Leading providers in this quadrant include Apptio, Flexera, and VMware. The report underscores the importance of linking cloud strategies with business objectives.
- FinOps platforms are becoming essential for managing cloud costs, indicating a growing market.
- Global demand for FinOps solutions is projected to grow by over 30% in 2022.
- None.
Platforms that monitor cloud usage and enable cost accountability are becoming central to public cloud migration strategies, ISG Provider Lens™ report says
The 2022 ISG Provider Lens™ global Public Cloud — Solutions and Services report finds that cloud cost management, a concept more than 10 years old, is becoming a major focus for enterprises after a wave of public cloud adoption over the past few years. Companies that have moved to the cloud, especially with multi-cloud strategies, are taking stock of how they are using cloud services and the associated costs. Vendors of FinOps platforms, which manage clients’ global IT assets and reduce their costs, are essential partners in maintaining complex cloud environments.
“FinOps now comes into play in all cloud engagements,” said
As logistical and work restrictions of the COVID-19 pandemic are lifted in most regions, enterprise adoption of public cloud services is growing exponentially, ISG says. The rising cost of in-house IT operations is a major driver of cloud migration, especially as the cybersecurity and data management features of public clouds grow more mature.
The FinOps platforms offered by experienced global providers, based on the open-source FinOps framework, enable companies to track their cloud resources and impose accountability for cloud usage. They allow enterprises to create central FinOps teams that collaborate with IT, finance, product engineering and procurement to make decisions that deliver maximum business value from the cloud. Through FinOps, cloud migration strategies are becoming more tightly linked with business objectives, the report says.
With improved tagging and labeling of cloud resources, FinOps solutions are becoming more effective at identifying the costs incurred by specific enterprise projects, ISG says. The global ecosystem of vendors, service integrators and community members around FinOps is expanding, and the market is expected to grow by more than 30 percent in 2022 — with faster growth likely in the future, the report says.
“Multi-cloud is becoming the norm, so many companies need to manage extremely complex cloud environments,” said
For more insights into the challenges enterprises face around cloud cost and management, and advice from ISG on how to gain the most benefit from FinOps, see the ISG Provider Lens™ Focal Points briefing here.
The 2022 ISG Provider Lens™ global Public Cloud — Solutions and Services report evaluates the capabilities of 16 providers in one quadrant: Cloud FinOps Platforms.
The report names
A customized version of the report is available from VMware (
The 2022 ISG Provider Lens™ global Public Cloud — Solutions and Services report is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across
A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.
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