The Value of Cloud FinOps for Federal Civilian Agencies

As the federal government continues to pursue digital transformation, cloud computing has become a strategic imperative thanks to benefits such as increased agility, resiliency, scalability, innovation and cost efficiencies. Yet, given the sector's complex and highly regulated nature, realizing these outcomes has been challenging for federal civilian (FedCiv) agencies.

This article explores how cloud FinOps can help FedCiv agencies gain visibility and control over their cloud costs and resources.

What is cloud FinOps?

Cloud FinOps is an operational framework and cultural practice for managing cloud costs where everyone takes ownership of their cloud usage. FinOps is best supported by a central best-practices group such as a Cloud Center of Excellence (CCoE), Cloud Business Office (CBO) or Cloud Program Management Office (CPMO). We use the term CCoE for this article.

The principles of FinOps include common concepts such as:

• Teams across an organization need to collaborate
• Decisions are driven by the business value of cloud
• Everyone takes ownership of their cloud usage
• FinOps data should be accessible and timely
• A centralized team drives FinOps
• Leverage the flexible cost structure of cloud services

The continuous application of FinOps best practices can help FedCiv agencies maximize the business value of cloud, accelerate product delivery, enable timely data-driven decision-making, promote financial accountability and drive workstream efficiencies by helping historically siloed teams collaborate.

Why FedCiv agencies need cloud FinOps

Common cloud cost challenges

FedCiv organizations face a distinct set of obstacles related to managing and optimizing cloud costs. Unlike their private-sector counterparts, FedCiv agencies must navigate a complex web of fragmented procurement processes, diverse funding structures and stringent reporting requirements — all while maintaining a relentless focus on mission delivery and citizen service. 

Whereas commercial organizations can take a more centralized approach to cloud cost management, FedCiv agencies often contend with siloed teams, disparate toolsets, and a fundamental disconnect between cloud usage data and mission-critical outcomes. This lack of visibility and integration has made it difficult for agencies to gain control over cloud spend and unlock cloud's savings potential.

To make matters more challenging, FedCiv agencies must demonstrate to oversight bodies the measurable impact of cloud initiatives on mission-related outcomes. They also need to align cost management efforts with the unique funding and reporting structures that govern the public sector.

How FinOps can help

Cloud FinOps holds the key to overcoming these challenges by helping agencies align cloud strategies with mission objectives, integrating cost insights into operational workflows and empowering cross-functional teams to drive continuous optimization. 

By establishing clear, agency-specific metrics and KPIs that align with mission objectives, the CCoE can arm FedCiv leaders with the metrics needed to justify their IT spending and secure the necessary funding to sustain transformation projects. FinOps' emphasis on measurable outcomes and data-driven decision-making can also help agencies more effectively communicate the value of cloud investments to leadership.

4 ways to jumpstart your FinOps journey 

As FedCiv agencies navigate today's complex cloud cost landscape, a common struggle involves aligning FinOps insights with real-world, mission-critical objectives. Here are four strategies to help federal agencies accelerate their journey to digital transformation through FinOps:

1. Establish a Cloud Center of Excellence (CCoE)

Creating a CCoE can provide the necessary structure and expertise to align cloud strategy with mission objectives. A CCoE helps in:

• Estimating cost implications during project planning.
• Designing applications with cost efficiency in mind.
• Incorporating cost metrics into the CI/CD (Continuous Integration/Continuous Deployment) pipeline.
• Implementing automated cost governance policies.
• Providing cost awareness training to development and operations teams.
• Fostering collaboration between finance and engineering teams.

2. Integrate FinOps insights into agency workflows and processes

Integrating cloud cost insights and optimization recommendations into daily operations and decision-making processes is crucial. This includes:

• Implementing cloud FinOps tools and platforms.
• Facilitating technical training on cost management best practices.
• Preparing teams to translate cloud data and insights into tangible, mission-driven improvements.

3. Tooling and technology integration

A comprehensive approach to modernization and cloud architecture can help agencies realize the benefits of cloud beyond just "lifting and shifting" workloads. This involves:

• Utilizing cloud cost management platforms for granular visibility into usage and spending patterns.
• Employing FinOps-focused automation and optimization solutions.
• Leveraging partnerships with public cloud providers and FinOps vendors to access the latest innovations and functionalities.

4. Ongoing support and continuous improvement

Continuous refinement and improvement of cost optimization practices are essential for sustainable cloud cost management. This can be achieved through:

• Regular health checks and performance reviews.
• Ongoing optimization recommendations.
• Ensuring immediate cost savings while laying the foundation for long-term cost management.

The value of a trusted FinOps partner

With extensive experience working with FedCiv organizations to overcome their unique cloud adoption and optimization challenges, we provide our FedCiv clients with strategic guidance, technical expertise and integration capabilities needed to implement FinOps across FedCiv cloud environments.

We have years of experience and know the FedCiv space well — from its fragmented procurement processes and diverse funding structures to its stringent reporting requirements and mission-driven priorities. Our intimate knowledge of the sector's opportunities and challenges has helped us develop tailored solutions for each agency's specific needs rather than taking a one-size-fits-all approach.

Moreover, our team of cloud and FinOps experts has a proven track record of helping organizations establish effective CCoEs, align cloud strategies with mission objectives, and integrate cloud cost insights into their operational workflows. Drawing on this wealth of experience, WWT can help FedCiv agencies accelerate their FinOps journeys so they realize the full potential of their cloud investments and deliver on their core mandates. 

Conclusion

Because cloud computing plays a vital role in the federal government's push for digital transformation, understanding the nuances of cloud cost management has become a strategic imperative for FedCiv agencies.

Cloud FinOps holds the key to overcoming many of the obstacles to cloud adoption in the FedCiv space. By establishing a centralized CCoE, agencies can finally align cloud strategy with mission objectives, integrate cost insights into operational workflows, and empower cross-functional teams to drive continuous optimization. Additionally, FinOps' emphasis on measurable outcomes and data-driven decision-making can also help these agencies effectively communicate the value of their cloud investments to leadership, securing the necessary funding and support to sustain their digital transformation journeys. 

As FedCiv agencies look to accelerate digital transformation, a trusted partner like WWT can provide the comprehensive consulting and professional services needed to rein in cloud costs while extracting the most value from your investments.