Convergence of FinOps and ITAM: Optimizing Cloud Investments

In the ever-evolving landscape of IT management, the convergence of Financial Operations (FinOps) and IT Asset Management (ITAM) has become crucial for organizations seeking to optimize their investments in cloud resources.

The role of ITAM in any organization is to optimize cost, reduce risk and provide governance over the effective use of IT assets. The ISO/IEC 19770-1:2017 definition is "the coordinated activity of an organization to realize value from all IT-related assets". Traditionally this includes Hardware Asset Management (HAM), Software Asset Management (SAM), and subsets like Software License Management (SLM) and Software-as-a-service (SaaS) management.

Whilst traditionally ITAM is still critical in all well managed organizations, the widespread adoption of public cloud introduces new challenges for ITAM. Including the fluid nature of Bring Your Own License (BYOL), different cloud service providers, and the fleeting nature of virtual cloud assets.

This has led to an increasing focus in the use of FinOps, focused on optimizing cloud costs and is defined by the FinOps Foundation as "an operational framework and cultural practice which maximizes the business value of cloud, enables timely data-driven decision making, and creates financial accountability through collaboration between engineering, finance, and business teams".

Integrating FinOps with IT Asset Management
For most organizations FinOps is either not yet established, or relatively new. In mature organizations there is an increasing convergence between FinOps and ITAM, involving individual and shared understanding, common taxonomy, toolset, and processes. This shared understanding is essential for effective communication, problem-solving, and alignment of expectations.

A crucial role is played by roles like FinOps Practitioners, Engineers, Finance/Procurement Managers, Business/Product Managers, and ITAM Practitioners - bringing together technology, business and finance professionals to maximize the return on technology investments. Clear communication is needed to deliver against key performance indicators (KPIs), such as:

• License Compliance
• License Optimization
• Cloud Security
• Risk Management
• Tag Compliance

Crucial for measuring success at the convergence of FinOps and ITAM! These metrics help organizations make informed decisions, control costs, and ensure security and compliance in the cloud.

The value of FinOps and ITAM convergence
In conclusion, the convergence of FinOps and ITAM is not just a collaboration between two disciplines, it's a strategic move for organizations looking to thrive in the dynamic landscape of cloud computing. By embracing this convergence, organizations can unlock the full potential of their IT assets, optimize costs, and achieve a streamlined and efficient IT estate.