As organizations adopt multi-cloud—encompassing a mix of on-premise, private, and public clouds—the limitations of traditional FinOps tools become increasingly apparent.
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As organizations adopt multi-cloud—encompassing a mix of on-premise, private, and public clouds—the limitations of traditional FinOps tools become increasingly apparent. These tools, primarily designed to manage costs for hyperscalers like AWS, Microsoft Azure, and Google Cloud, are ill-equipped to support the full spectrum of cloud environments, which now includes niche providers like DigitalOcean and regional players such as Gcore and Leaseweb.
Here’s a deeper look into why traditional FinOps tools fail in true multi-cloud environments, leaving FinOps professionals struggling to maintain cost control, optimization, and governance in today’s complex landscape:
Hyperscalers offer standardized APIs, billing structures, and usage metrics that traditional FinOps tools are specifically designed to track. However, they fall short when you introduce a complex mix of on-prem infrastructure, private clouds, and niche or regional providers like DigitalOcean and Leaseweb.
For FinOps professionals, this inability to track costs effectively across hybrid and multi-cloud environments results in inefficiencies and missed savings opportunities.
Public cloud providers offer a variety of pricing models—pay-as-you-go, reserved instances, spot instances, and different SLAs.Traditional FinOps tools are usually built around these models but falter when applied to different pricing models of niche or regional cloud providers.
Without the ability to capture the nuances of each provider’s pricing and usage model, FinOps professionals are left without a clear path to cost optimization across the full breadth of their multi-cloud infrastructure.
Organizations using multi-cloud environments often adopt highly dynamic strategies. They switch between providers based on performance, pricing, or changing business needs.
Traditional FinOps tools, which assume steady-state operations within a single provider, struggle to keep up with the agility required for multi-cloud strategies.
Governance becomes a major hurdle when each cloud provider has its own compliance, security, and cost management standards. FinOps tools do not focus much on governance, primarily addressing cost controls and spending policies only. Even so, they fail to extend their limited governance capabilities across all cloud providers.
Achieving usage and cost optimization, in reality, is impossible without consistent governance across multiple clouds.
In a multi-cloud environment, organizations often deal with data silos, where each cloud provider generates its own isolated datasets for usage, performance, and cost.
Without seamless data integration across all clouds, FinOps tools offer flawed analysis and suboptimal financial decisions.
Traditional FinOps tools are doomed to fail in true multi-cloud environments because they lack the adaptability, flexibility, and scope to handle the inherent complexity of managing costs across public, private, and niche cloud providers. At best, they cater only to renowned, hyperscale environments.
In an environment where cross-platform integration, diverse pricing models, and dynamic workload shifting are the norms, organizations need modern FinOps solutions that offer:
Without these capabilities, organizations simply cannot hope to manage, optimize and govern cloud spend in a true multi-cloud environment.
