Managed Services, Financial services
As more companies move to cloud-based systems, driven partly by the promise of AI, many wonder whether their investments are truly paying off. It’s not just about saving money — it’s about realizing real business value. Cloud FinOps, a financial management approach for cloud environments, is key to making this happen.
The importance of measuring business value
When companies invest in cloud technology, they often ask, “Are we seeing the benefits we expected?” Google Cloud’s research since 2022 shows that companies using Cloud FinOps are not only managing costs but also tracking how their cloud investments translate into real-world business outcomes. This process allows companies to justify spending, prioritize decisions, and showcase successes to executives and the public.
Why cloud FinOps is essential
Cloud FinOps shifts the focus from just looking at costs to understanding the business value behind those costs. Traditionally, businesses might only track the amount spent on cloud services without a clear connection to the outcomes those expenditures produce. But with Cloud FinOps, companies can reframe their thinking. Instead of saying, “We spent $10,000 on cloud services,” companies can say, “Our $10,000 investment generated a 6% improvement in business value.”
This shift is crucial because it moves beyond simple cost management to a more holistic view of value creation. Cloud FinOps helps organizations get detailed visibility into spending, breaking it down by department, project, or team. This transparency allows companies to link spending directly to business outcomes, making it possible to measure the return on investment (ROI) for each dollar spent on cloud resources.
For example, an online retailer can use Cloud FinOps to track how much each customer transaction costs. By combining this with customer satisfaction data, the retailer can make smart choices, like tweaking cloud resources to lower costs or adding cloud services that improve customer experience, leading to higher sales.
In short, Cloud FinOps helps companies plan and budget for cloud costs while aligning spending with business goals. It also enables faster decision-making by using real-time data, allowing companies to adjust their strategies as needed. Cloud FinOps is not just about saving money; it’s about making every dollar spent on the cloud work harder and deliver measurable value to the business.
Five pillars of business value in cloud transformation
Cloud transformations bring more value than just cost savings. By focusing on the key areas below, businesses can fully tap into the benefits of moving to the cloud. These areas help optimize operations, drive growth, and support better decision-making.
Figure 1: The five pillars of business value
Cost efficiency
Cost efficiency is often the first benefit that comes to mind with cloud transformation. Google Cloud’s research highlights that companies leveraging Cloud FinOps practices achieve significant cost savings by gaining transparency and optimizing cloud spending. This approach allows businesses to link their cloud costs directly to their growth, ensuring that investments are paying off.
Sustainability
Sustainability is becoming increasingly important as businesses focus on reducing their carbon footprint. Google Cloud’s Carbon Sense Suite enables companies to measure and optimize their environmental impact, helping them make more sustainable choices. Although sustainability benefits are still emerging, they are expected to grow as more companies start measuring these effects.
Resiliency
Resiliency is another critical area where cloud transformations show value. Google Cloud’s findings reveal that improved infrastructure scaling and enhanced service availability are among the most cited benefits. These improvements help businesses maintain continuity and security in their operations, which is essential in today’s digital environment.
Customer satisfaction and revenue
Cloud technology enables businesses to offer new or improved services, particularly through AI. These advancements lead to better customer experiences and, consequently, increased revenue. Google Cloud’s research shows that companies leveraging cloud technology see significant improvements in customer satisfaction and revenue growth.
Read next: How Revolgy helps your business implement AI solutions
Innovation
Innovation is the most frequently cited benefit in Google Cloud’s analysis. Cloud transformations accelerate business processes, enable rapid experimentation, and allow for the development of new products and services. This increased agility helps businesses stay competitive and adapt quickly to market changes.
Realizing business value with Google Cloud
Interestingly, Google Cloud’s research found that innovation, not cost efficiency, was the most frequently cited benefit of cloud transformations. Companies are seeing tangible results in areas like improved resiliency and accelerated innovation. While sustainability benefits are emerging, they are expected to grow as more companies begin measuring the impact of their cloud journeys.
Figure 2: Innovation, followed by resiliency, are the most common forms of business value of a cloud transformation
Google Cloud’s insights make it clear that the value of cloud transformation extends well beyond cost savings. By focusing on cost efficiency, sustainability, resiliency, customer satisfaction, and innovation, businesses can realize significant benefits that drive long-term success. As cloud technologies evolve, these pillars will become even more important for companies to stay competitive and succeed.
Are you ready to take full advantage of cloud transformation and ensure your long-term success? Contact Revolgy today to learn how we can help implement Cloud FinOps practices tailored to your business needs.
