Enterprises Embracing FinOps to Track, Control Cloud Costs
STAMFORD, Conn.--(BUSINESS WIRE)--Dec 15, 2022--
Enterprises’ growing reliance on public clouds is increasing their cloud costs, leading to rising global demand for FinOps platforms to monitor and control expenses, according to a new research report published today by Information Services Group ( ISG ) (Nasdaq: III ), a leading global technology research and advisory firm.
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 Bernie Hoecker, partner, Enterprise Cloud Transformation at ISG. “It has become a core part of the public cloud ecosystem.”
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 Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Cost optimization is a top priority.”
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 Apptio (Cloudability), Flexera, HCLTech (MyXalytics), NetApp (Spot) and VMware (CloudHealth) as Leaders in the quadrant.
A customized version of the report is available from VMware (CloudHealth).
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 Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
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.
ISG (Information Services Group) (Nasdaq: III ) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.
View source version on businesswire.com:https://www.businesswire.com/news/home/20221215005653/en/
CONTACT: Press Contacts:
Will Thoretz, ISG
+1 203 517 3119
Julianna Sheridan, Matter Communications for ISG
KEYWORD: UNITED STATES NORTH AMERICA CONNECTICUT
INDUSTRY KEYWORD: SOFTWARE NETWORKS INTERNET CONSULTING DATA MANAGEMENT PROFESSIONAL SERVICES TECHNOLOGY SECURITY
SOURCE: Information Services Group, Inc.
Copyright Business Wire 2022.
PUB: 12/15/2022 09:30 AM/DISC: 12/15/2022 09:32 AM