Cloud optimisation is more than just managing expenses—it’s about aligning cloud investments with business objectives, driving innovation, and fostering financial sustainability. This balance is especially critical as organisations scale their digital transformation efforts in a landscape dominated by advanced technologies like generative AI and edge computing.
In a recent roundtable discussion, DiUS consultants explored the strategic and practical aspects of cloud optimisation, focusing on frameworks like FinOps and sharing real-world insights into how organisations can reduce waste, empower teams, and maximise the value of their cloud resources. These lessons offer a clear path for organisations to transform cloud optimisation into a strategic advantage, ensuring every cloud dollar contributes to meaningful business outcomes.
Why cloud optimisation matters
Cloud technologies have transformed the way businesses operate, offering scalability and flexibility. However, unchecked cloud spending often undermines these benefits. Studies suggest that up to 30% of cloud expenditure is wasted, a statistic that underscores the need for disciplined cost management (Gartner).
Effective cloud optimisation not only eliminates waste but also frees up resources for strategic initiatives. By adopting practices like FinOps, organisations can shift from reactive cost-cutting to proactive resource management.
Cloud optimisation in digital transformation
Cloud optimisation enables organisations to balance innovation with financial efficiency. According to Warner Godfrey, Principal Consultant at DiUS, “Good cost management starts with visibility. Predictive tools and ongoing monitoring allow teams to avoid surprise expenses and adjust in real time.”
Godfrey further noted, “Using cost calculators is more of an art than a science, but they provide a baseline. Regular tracking helps teams adjust early, avoiding surprises at the end of the month.” Setting budget alerts and monitoring usage patterns are critical steps in enabling proactive adjustments and ensuring spending aligns with operational needs.
One example involved a financial services firm that faced significant overprovisioning issues. By implementing granular cost attribution and empowering teams to monitor their own resource usage, the organisation reduced waste by 20% within six months.
Understanding FinOps, the core of cloud optimisation
FinOps, short for “Financial Operations,” bridges the gap between finance, engineering, and operations. It is a framework designed to promote accountability and collaboration in cloud cost management.
Matt Kairys, Principal Consultant at DiUS, described FinOps as “a foundation that helps teams and organisations understand, manage, and optimise their cloud costs. It’s not just about tracking—it’s about empowering everyone across the organisation to contribute to cost efficiency and decision-making.”
Key principles of FinOps
- Accountability across teams: “FinOps creates a shared understanding of cloud costs across engineering, finance, and business teams,” said Kairys. “It breaks down silos and ensures everyone understands their role in managing costs.”
- Granular cost attribution: Larger organisations often struggle with assigning cloud costs accurately to departments or products. Daniel Livolsi, Principal Consultant at DiUS, shared an example: “At one of my large enterprise clients, we could pinpoint exact costs per business unit, enabling us to identify inefficiencies and optimise high-cost areas quickly. This approach saved hundreds of thousands of dollars.”
- Data-driven decision-making: Kavita Kerwar, Principal Consultant at DiUS, emphasised the importance of visibility: “Good FinOps practices aren’t just about knowing your costs. They’re about understanding whether those costs align with your business objectives.”
- Proactive budgeting and alerts: Warner Godfrey highlighted the importance of predictive budgeting: “With FinOps, you set budgets upfront and receive alerts when you’re trending over. This allows you to adjust before costs spiral out of control.”
Strategies for cloud optimisation
- Predictive cost management and continuous monitoring: Richard Thompson, Principal Consultant at DiUS, highlighted the value of proactive reviews: “Usage patterns change, new applications are introduced, and requirements shift. Regular tracking ensures spending aligns with operational needs.”
- Empowering teams through visibility: Kavita Kerwar noted, “Gamification and clear metrics can encourage teams to think more critically about resource provisioning and cost-efficiency.” Lincoln Fitzsimmons, Senior Consultant at DiUS, shared an innovative approach: “At one client a credit card was used for cloud expenses. When the balance ran out, teams were notified and prompted to investigate their spending. This simple method brought immediate attention to expenses and fostered a habit of frequent reviews.”
- Right-sizing and auto-scaling: Warner Godfrey explained: “Auto-scaling ensures resources match demand dynamically, avoiding the inefficiencies of overprovisioning.”
- Cloud-native architectures: “Legacy applications moved to the cloud without refactoring often result in poor performance and high costs,” noted Richard Thompson. “Cloud-native solutions, such as containerisation, offer scalable and efficient alternatives.”
- Efficient data management: Erik Danielsen, Principal Consultant at DiUS, discussed data strategies: “It’s not just about storage—it’s about lifecycle management. Organisations need clear policies on what data to keep and where to store it for maximum cost efficiency.”
The FinOps payoff: Aligning costs with value
Adopting FinOps isn’t just about reducing cloud expenses; it’s about ensuring every dollar spent contributes to business objectives. For instance, a retail client initially planned to use GPT-4 for a generative AI application to handle customer queries but switched to a smaller model after testing revealed comparable performance at a fraction of the cost.
Matt Kairys summed it up: “Optimising cloud costs isn’t about doing less—it’s about doing more with what you have. FinOps enables organisations to scale innovation while maintaining financial discipline.”
Implementing FinOps: Best practices
- Embed FinOps into the organisational culture.
- Use automation tools to track, tag, and report cloud costs.
- Prioritise high-impact areas for cost optimisation.
- Foster cross-functional collaboration among finance, operations, and engineering teams.
Conclusion: The strategic imperative of cloud optimisation
Cloud optimisation, anchored by FinOps, is essential for driving digital transformation. By embedding cost-awareness into organisational culture and leveraging collaborative frameworks, businesses can achieve sustainable growth.
As Richard Thompson put it, “Cloud optimisation isn’t a one-time effort. It requires continuous improvement, aligned with changing needs and technologies.”
The organisations that succeed will be those that treat cloud optimisation as a strategic initiative, unlocking both innovation and financial efficiency in the process.