Enterprises lean on FinOps to rein in SaaS, AI overspend

“Companies understand they need to do FinOps,” FinOps Foundation Executive Director J.R. Storment said. “The big ones — the mature ones — have gotten good at it.”

Dive Brief:

• Enterprises plan to expand their use of FinOps cloud cost optimization practices to rein in SaaS and AI spending, according to a FinOps Foundation report published Thursday. The nonprofit organization surveyed more than 800 companies for its fifth annual report.
• Nearly two-thirds of respondents intend to leverage FinOps to manage SaaS spend in the coming year and nearly half are targeting software licensing fees. A majority of FinOps practitioners — 63% — already manage AI costs across cloud and on-prem ecosystems, up from 31% last year, the report found.
• “Generative AI services from AWS, Google and Microsoft are coming into the FinOps practice right now as part of their regular cloud bills,” FinOps Foundation Executive Director J.R. Storment said. “But there’s a ...