Unlike many modern tech movements, FinOps is not a single advancement
or policy change pioneered by any specific company or organization;
it’s a natural evolution of technology management to account for
on-demand cloud resources.
With the rise and proliferation of cloud computing in the new
millennium, many companies began to see a shift from standard,
traditional pricing to usage-based pricing models. And, while this
allowed businesses to take a more cost effective approach to
technology—paying only for the time and resources they used, rather than
paying a set rate—it created a crisis for CFOs. After all, it’s next to
impossible to predict tool usage with any degree of accuracy, which can
make budgeting an exercise in futility.
To address this issue, prevent runaway expenses, and promote business
profitability, organizations around the world began to develop the
concept of financial operations, (FinOps). This revolution was guided by
respected technology companies around the world, first taking shape as
cloud cost management, developing into cloud cost optimization, and then
into cloud financial management.
Finally, taking inspiration from the success of DevOps, FinOps was
born, bringing cross-functionality and agility to financial management
of cloud technologies.