Anticipate cloud migration with FinOps

by Marlène Seif - Senior Manager, Beamap by Béatrice Rollet - Group CTO Innovation & Digital – Cloud Services, Director | minutes read
Innovative and fast cloud services are crucial to digital transformation initiatives. Whilst there is no textbook model on how to adopt these services, it is nonetheless vital for companies to integrate them as fully optimised services in order to control their ROI.
In the process of adopting cloud services, a business may find they have not made the expected substantial savings from this transformation. This can be a major disappointment and the question of why this is, must be asked.
According to Gartner’s Can You Save Money Migrating to Cloud IaaS?, 64% of companies hope to make drastic savings by migrating to a public cloud service. However, the actual average savings amount to just 16%. However, we hear of companies that have played their cards right and managed to make 50% savings – how do they do it? Below we an answer to this thorny question.

Hopes for cloud migration

With a 3-year investment plan and replaceable servers, classic IT management models are now unable to efficiently meet the needs of skilled professionals. Cloud services, which offer flexibility and pay-as-you-go options, are being presented as the best solution for operational and financial savings.
In terms of operations, the cloud offers the possibility of allocating resources on demand, of increasing agility in terms of time to market, and of all-round better service availability. It also helps to facilitate administration and supervision.
From a financial viewpoint, these different factors will result in cost reductions: costs only applied to resources that will be used effectively; the company will be freed from the restrictions of obsolete equipment or replacing out-of-date equipment.

Preparing for migration: the business case as an initial key step in a FinOps procedure

Cloud migration involves a paradigm shift, both in terms of operations and finances. It also requires a considerable amount of preparation if it is to deliver.
The move from a fundamentally fixed-price model with generally easy to predict pricing, to one based on upgradeable and disposable micro-components (CPU resources, memory, storage, services, etc.) requires a solid adaptation of a company’s processes, skills, and tools.
Analysis should focus on the following points:
  • The company’s strategy: targets and skills development; international outlook; and, operating restrictions (data-centre closure, regulations, etc.).
  • Inventory and audit of existing equipment (IT, applications, data) enabling the business to collate accurate documentation on resources used, their dependence, and any agreed investments.
  • Finally, analysing these data and establishing a detailed business case with guidelines, will allow businesses to estimate not only the advantages and profits of cloud migration, but also any financial savings and the necessary actions to achieve them.
So, how do you begin? Firstly, designate applications in a migration pathway without forgetting to challenge organisations and take advantage of any leverage. This first phase offers a chance to explore the best migration scenarios, for instance by:
  • choosing between SaaS, private, hybrid or public cloud applications,
  • taking back control over the range of activities in Shadow IT,
  • modernising certain applications or by decommissioning others.
This exercise will then involve selecting your option to refine these ideas in terms of finances. A FinOps consultant, with solid architecture skills and knowledge of Cloud Service Provider (CSP) pricing schemes, will be a real asset. Measuring real usage, planning developments, taking advantage of optimisation recommendations through Cloud Cost Management (CCM) tools, will help to drastically reduce the risk of uncontrolled and unmanaged expenses.

Initiating FinOps

Now that the different scenarios have been assessed and your roadmap has been approved, what next? It is essential to establish and distribute a FinOps procedure to the teams responsible for the applications in question as soon as the migration process has started. Once the FinOps team has been created, its first task will be to formalise a governance framework by sharing architectures, cloud services and skill-sets, as much as possible, and by defining and spreading good practice. This step will also require a Cloud Cost Management service. Depending on the need, if using CSP tools or specialist providers, you will have to bear in mind any future developments that may need to be covered.


New investment capacities for your innovative projects

Benefiting from new investment capacities through a cloud migration plan is one of the most important motivations for businesses; but it is vital to plan and establish suitable governance. Savings can be spread out over time, providing that these practices are maintained throughout the RUN phrase, and particularly through continued business optimisation.
More on this topic
Alive Intelligence

Conversational Assistants: go to scale

| Patrick Meyer

74% of French companies consider chatbots as a lever for digital transformation and more than a third have already deployed one. By 2020, 80% of them could use a chat assistant. A massive deployment that echoes consumer habits: 69% prefer the bot to a human exchange.

Discovery Assessment

How can you use your IT assets to achieve digital transformation?

| Andre Bakland, Simon Herd, Béatrice Rollet

According to Gartner, for every dollar invested in digitalisation in 2020, three dollars will have to be invested in the modernisation of IT assets. Therefore, opting for the right evolution strategy becomes a crucial issue. Read more.

Data et Covid-19

How Data Science can help in a pandemic situation?

| Marlon Cárdenas

With the aim of covering current and future needs of society, Data Science and Artificial Intelligence are seeking to drive the creation of technological solutions that benefit users in their daily lives. Many disciplines are uniting behind this cause, with health sciences to the fore, especially given the current context of the battle against the Covid-19 pandemic.


How holographic technology is helping doctors deliver better care

| Scott Leaman

Long gone are the days when holograms were the stuff of sci-fi movies and video games. Holographic technology is taking the medical world by storm, and by the looks of it, it’s here to stay. So how exactly is this technology helping doctors, and what are the major developments that we expect in the near future?

IA transforms Industry

How will artificial intelligence transform industry?

| Maxime Claisse, Alexis Girin, Benoit Spolidor

Whilst there is no set definition of artificial intelligence as of yet, experts are in agreement that AI can simulate human cognitive capabilities such as perception, reasoning, action, and learning. AI now promises to completely transform the industrial sector – one of its primary applications.


International Paris Air Show: 5 trends to transform aeronautic

| Youssoupha Diop

The 53rd International Paris Air Show 2019 has confirmed the mounting fierce competition in the world of aeronautics. In this context, data, digital tools and artificial intelligence are now understood to be precious bargaining chips to accelerate transformation and turn these challenges into opportunities.


Anticipate cloud migration with FinOps

| Marlène Seif, Béatrice Rollet

Innovative and fast cloud services are crucial to digital transformation initiatives. Whilst there is no textbook model on how to adopt these services, it is nonetheless vital for companies to integrate them as fully optimised services in order to control their ROI.


From product to services: Flying the Aeronautics Industry into the Digital Future

| Philippe Armandon, Gaudérique Garrigue

With increasing travel demand and new competitors entering the market, aircraft manufacturers today are under considerable pressure.


How to control and optimise your cloud costs

| Didier Teixeira, Béatrice Rollet, Frédéric Janicot

Using public cloud services means rethinking your IT financial management. 


ASD S5000F: taking Aircraft MRO to new heights?

| Cyrille Greffe

In the 1990s, the combination of computer-aided design (CAD) and the concept of modular documentation gave rise to the first ASD standards (AeroSpace and Defence Industries Association of Europe).


Application replatforming: the Cloud migration booster

| Benjamin Chossat

Simple set-up, low cost and access to the horizontal elasticity of the Cloud: replatforming is often considered the best solution for porting a business application to the Cloud.


7 key strategies to transform applications with the Cloud

| Benjamin Chossat

How to modernise an application efficiently using the Cloud?

Innovating in pursuit of environmental sustainability

Innovating in pursuit of environmental sustainability

| Siva Niranjan

To attract new business, talent and investment, companies have had to demonstrate their environmental credentials more and more over the past years to wide range of stakeholders including institutional investors, regulators, clients, and employees.

Urban Air Mobility: is the future of mobility be in the air?

Urban Air Mobility: will the future of mobility be in the air?

| David Elmalem, Sébastien Lautier

While the dream of the flying car has often been reserved for science fiction, a very practical and real future is gradually emerging for urban air mobility.

Guidance is the key for adapting DevOps to big business

Guidance is the key for adapting DevOps to big business

| Gauthier Deschamps

DevOps is revolutionising agile transformation for big business. The method was initially focussed on software building but by automating production, it frees up resources so as to better resolve organisational and human malfunctions.


How Blockchain technology can improve Industry 4.0’s cybersecurity

| Alexandre Eich Gozzi

Earlier this year, the world’s largest container shipping company Maersk fell victim to a massive ransomware attack from the infamous NotPetya malware.