Cloudability is a platform that helps organizations that run in the public cloud to better optimize the economics. We bring financial accountability to variable spend while allowing you to move more quickly and innovate with oversight,” said JR Storment – Cloudability co-founder, “We manage $9 billion of cloud spend now with some customers in 9 figures.”
The company provides visibility and recommendations to allow you to improve the unit economics of your cloud spend.
JR explained we have hit a point where businesses are using software as a primary way to deliver value to customers. He referred to Alaska Airlines saying in 2015, they’re no longer just an airline company, they’re actually a software company with wings. Companies must be the best at data and personalization experience and cloud drives that experience.
Over time, companies went from a data center-centric approach to IT with fixed costs to a cloud-centric approach with variable costs based on usage. Companies though aren’t ready to manage large spend – which we detailed above can be in the hundreds of millions or more. Moreover, it is difficult or impossible to chargeback this spend to the right areas within an organization. These challenges are breaking budgets and slowing innovation and subsequently slowing cloud migration.
“Spend management is a challenge,” he exclaimed.
While DevOps and cloud are great for speed and instant scale, it has resulted in spending without procurement or accountability as engineers make the financial decisions with an unlimited credit card and they never see the bill.
FinOps is a new discipline which brings financial accountability to variable spend model of cloud, enabling distributed IT, finance and business teams to tune for speed, cost or quality. It allows product teams to make the best decisions for the business and deploy funds to get the resources needed.
In addition, rate and discount optimization can be centralized to maximize pricing power. In addition, benchmarking can be performed between teams to ensure they are working at maximal efficiency.
Done correctly – customers can see efficiency gains between 10-40%.
The company also recently founded the FinOps Foundation which has over 200 members and defines collective best practices for the industry.