Complex Infrastructure: Public cloud environments, like AWS or Azure, are complex and dynamic, with multiple layers of abstraction, automation and scaling. This can make it hard for organizations to keep track of the software licenses they are using and the costs associated with them. The constantly changing infrastructure can result in license over-consumption, under-utilization, or even misconfigurations that can lead to license compliance issues.
Lack of Visibility: In a public cloud environment, resources can be created and destroyed on-demand, making it difficult to keep track of what resources are being used and by whom. This lack of visibility can result in an inability to accurately track software license usage, and an increased risk of over-spending on licenses or being out of compliance with licensing agreements.
Multiple Accounts and Teams: Public cloud environments are often used by large organizations with multiple departments, teams, and accounts. This can result in a decentralized approach to software licensing, making it hard for organizations to maintain a comprehensive and centralized view of their licensing landscape. Additionally, different teams may have different requirements for software licenses, which can result in conflicting license usage and further complicating the tracking of licenses.
Now that we have established the challenges of tracking software licensing in the public cloud, let's explore why large companies should start a FinOps program.
Cost Optimization: A FinOps program helps organizations optimize their cloud spending by providing a centralized view of costs, identifying opportunities for cost savings, and ensuring that resources are used efficiently. This can result in significant cost savings, especially in a public cloud environment where costs can spiral out of control if not properly managed.
Improved Compliance: A FinOps program can help organizations stay compliant with licensing agreements by providing a centralized view of license usage and ensuring that licenses are properly allocated and managed. This can help organizations avoid compliance issues, legal disputes, and financial penalties.
Better Governance: A FinOps program provides organizations with a governance framework for managing cloud resources and costs. This can help organizations make informed decisions about their cloud infrastructure, ensure that resources are used effectively, and promote a culture of cost consciousness within the organization. By starting a FinOps program, large companies can ensure that their cloud infrastructure is optimized, compliant, and well-governed, which can help them achieve their business objectives.
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