Study: Only 10 Percent Have an Established FinOps Practice

A survey conducted by Spot by NetApp among public cloud business and IT decision makers has revealed that 96 percent are of the opinion that FinOps is important to cloud success, yet only 10 percent have an established FinOps practice.

Spot by NetApp’s research covers the current status of cloud management and how enterprises are attempting to improve their environments, continuing the yearly survey formerly done by CloudCheckr following its acquisition by NetApp.

In 2022, 21 percent of respondents are ‘very’ confident in their insight of public cloud costs, down from 31 percent in 2021. 62 percent of respondents plan to concentrate on cost containment in 2022.

Anthony Lye, EVP and GM, Public Cloud Services at NetApp.
“The survey results highlight that while companies have rapidly adopted cloud, IT continues to look for ways to increase the value and ROI of its cloud investments,” said Anthony Lye, EVP and GM, Public Cloud Services at NetApp.

A key trend surfaced in the report highlighted that while companies continue to accelerate cloud adoption, many do not believe they are effectively optimizing their infrastructure. Businesses are responding by establishing internal initiatives such as Cloud Centers of Excellence (CCoEs) and FinOps, as well as cloud purchasing commitments, tools, and outside assistance (e.g., managed service providers). While some respondents said they are still evolving in these areas, those that have successfully implemented and scaled programs say their cloud journey has increased agility, efficiency, and governance.

 “The results highlight that while companies have rapidly adopted cloud, IT continues to look for ways to increase the value and ROI of its cloud investments,” said Anthony Lye, Executive Vice President and General Manager, Public Cloud Services at NetApp. “Organizations also make it clear that cloud cost, security, automation, and resource optimization will remain key concerns. Cloud-centric companies most likely to succeed will implement the right strategies, technology solutions and partner relationships to help manage costs and reduce complexity.”

Breadth of Managing Cloud Operations is Expanding

Additional key findings from Spot by NetApp’s 2022 Cloud Infrastructure Report include the following:

  • Increased usage of cloud technology (63 percent), migration of new services to the cloud (52 percent), and cost optimization in the cloud are all targets for 2022. (50 percent).
  • 90 percent of respondents said they have or plan to have a Cloud Center of Excellence (CCoE).
  • 61 percent of those who currently have a CCoE predict that their responsibilities will increase in 2022.

In addition, the study reveals that MSPs are playing a key role in cloud operations:

  • For cloud operations, 71% employ a managed service provider (MSP).
  • 100 percent of businesses who use a managed service provider for cloud operations think the arrangement has helped them.
  • 83 percent of businesses that use a managed service provider for cloud operations also use them for FinOps.

Survey Methodology

An online poll of independent IT and business stakeholders responsible for public cloud infrastructures such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud was sent out in February 2022. The Spot by NetApp survey had 305 responses in total. Participants came from a variety of positions, companies, sectors, and career levels. To study evolving patterns, several questions were repeated from previous research from 2017, 2019, and 2021.